H&H expands housing

Higgs and Hill has spent œ22.5 million expanding its housing division to take advantage of the improving market and cut down on its exposure to construction.

The acquisition of 31.7ha of land in the west and south-east of England will be funded by a rights issue.

The 1 for 2 rights issue, which at 105p per new ordinary share should raise around œ22.2 million, is fully underwritten and the money will be in by 30 June.

Most of the new land, 27ha, was purchased from English China Clay.

Higgs and Hill md John Theakston said: 'The main point is that this doubles our housing operation and reinforces an important core business.

'We are looking to grow our earnings after emerging from a very difficult period of recession.'

Theakston pointed out that the group's three core businesses - construction, property and housing - are subject to market cycles.

'The important thing to do is invest in them at the right time in the cycle.

'Property and housing are improving so we are investing there. Improvement in construction is still some way off,' he said.

The new land is split into 13 sites, seven of them in Wiltshire, Berkshire and Oxfordshire which will form the basis of a new western housing region.

The other six sites in Kent, Sussex and Hertfordshire will be integrated into the existing south eastern region.