Mr. Robertson: Wilson Bowden began in the late 1960s as a business run by David Wilson and his father, which David then took on and grew as a private business. The company floated in 1987 and, building up to this, moved from being focused purely on housing to also include property development, mainly beginning with sheds in the Midlands. These were straightforward building projects, which David found he could accomplish in much the same way as he undertook for the housing. Since the float, the business has increased in size and diversity. Last year it sold just over 3,600 housing units with around 9% in flats (apartments), a sector of the business that is growing. On the property development side, the turnover last year reached GBP158 million with over a million square feet of property development right across the retail, leisure, office and industrial sectors. So, we reached a stage last year where turnover was approaching GBP750 million, with profits of just over GBP120 million. On the housing side, it is a company with the highest margins in the sector. They were not specifically the highest last year but if you look at over a longer period of time we have record of achieving the highest margins. This is coupled with a long land bank and delivering a return on capital that stands comparison with the top end of the sector.
TWST: Recording the highest margins is undoubtedly a salient point for investors, but where are you positioned in the sector with respect to volume?
Mr. Robertson: To clarify, we are not a volume house builder. Volume house builders would be turning in 8-14,000 units per year if you look at the new players. We are a niche player with a product that is aimed mainly at the upper end of the market, be it on our core housing business or our flats business. For example, 64-65% of our core housing, excluding flats, contains four or five bedrooms. So, we are very much at the upper end of the market in that respect.
Tickers included in this excerpt: WLB.L
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