Kebbell Holdings claims to have carved out a niche in the British housing market, building executive-style homes that sell for an average of £260,000. While the Watford-based company is a relatively small player, it has seen profits grow by 39% pa, from £1.9m in 1995 to £5.2m in 1998. Sales in the same period have increased 12% pa to £17.1m.Managing director Nicolas Kebbell attributes profit growth partly to recovery of the UK housing market, particularly at the upper end, which has produced a strong demand for spacious family homes. These represent a high margin sector. The company is also reaping the rewards of a judicious decision to buy land cheaply during the early 1990s property slump. Kebbell does warn that rising land prices could hit future margins, and he notes the difficulty of building large homes on increasingly smaller-sized plots.
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