B&B profits boost

The company announced a rise in its preliminary profits to £273 million from £253 million - a jump of eight per cent before exceptional items in the period ending in December

And shareholders are set to join in today's financial glee by seeing a 13 per cent rise in dividends - 14.8p per share compared to 13p last year.

The company's operating revenues rose £15 million to £728 million. Despite tough trading conditions - house prices flattening out, share values collapsing and fears of war - B&B saw its lending balances up nine per cent to £20.5 billion (2001: £18.7billion) and new lending grow 73 per cent to £5.8 billion including a £650 million mortgage book acquisition in 2002 (2001: £3.4 billion).

Ian Derby, B&B's financial director, said he was pleased with the results, particularly as people had faced tough news over the economy, house prices and the tumbling stock market.

"We are very pleased, but there is still much work to do," he said.

But he said the signs for the company - which has its headquarters in Bloomsbury, in London - were good.

"Lots of people are coming into our branches and taking independent mortgage and financial advice which despite difficult times people still need to do," he said.

Mr Derby said he recognised that people were fearful about investing in stocks and shares with the current difficult conditions.

And Mr Derby said he believed the housing market could not sustain the high levels of rises it had achieved in the past.

"The 25 per cent rises in house prices are just not sustainable. The level of growth will slowdown significantly and we predict single figure for the year ahead."

Other highlights for B&B were that in the savings business balances grew by £300 million to £13 billion and mortgage broking-related revenues increased by 30 per cent to £56 million. Property services revenues grew by seven per cent to £115 million from a smaller branch network. B&B shares rose 1p in early trading to £2.80.