Block Watne AS is the largest independent house builder in Norway. The core business is development of the Company’s own residential projects close to urban centres and populated zones, and standard houses for customers with their own land. Operations are conducted from 21 regional offices – from Trøndelag in the north down to the south. Development of properties and housing projects, sales and building are carried out by employed personnel.
Block Watne experienced good and improving sales during 2009. Low interest rates, better access to mortgage loans and low unemployment were all instrumental in bringing back many customers who had put house purchasing on hold in 2008. Holdings of previously completed houses also had a very favourable impact on sales. When entering 2009, sales and production were largely focused on projects in progress. The second half of the year saw a number of new projects started, and new sites are being purchased again for future development. The order backlog rose in the second half of the year and was at a satisfactory level at the end of 2009. In practice, Block Watne also has an “extra order backlog” in its holdings of completed unsold houses, which comprised 70 units at the end of 2009.
Operating income for 2009 amounted to NOK 1 479 million, an increase of NOK 20 million (1.3 per cent) compared with 2008. Earnings before finance and depreciations (EBITDA) was NOK 212 million, a decline of NOK 17 million (7.5 per cent). The EBITDA margin for 2009 was 14.3 per cent, compared with 15.7 per cent in 2008. The order intake for 2009 was NOK 1,587 million, an increase of NOK 429 million (37.1 per cent) compared with 2008. The company ended the year with an order backlog of NOK 585 million, compared with NOK 452 million at the end of 2008, which represents an increase of 29.4 per cent.
At the end of 2009, the staffing level was 6 per cent lower than at the end of 2008. Project-oriented staffing has gradually risen from the end of 2009 into 2010 in response to sales development and the increasing order backlog.
New houses are constantly being developed for the company’s own housing projects, and three new standard houses, “Asker”, “Holm” and “Lund”, were developed in 2009. Market initiatives, customer follow-ups and property viewings are conducted with the emphasis on local activities. A new edition of the House Book with 43 architect-designed houses has been launched. The focus for 2010 will be on targeted sales of selected products and projects and a further increase in the order backlog. There will also be a focus on developing the land bank with properties at the right price and in the right location, further investment in the low-energy and passive house concepts and optimisation of operating efficiency at construction sites. Hetlandhus AS was relaunched in 2009, with a portfolio of nine reasonably priced standardised houses with defined optional extras. The houses, which are produced in modules at SmålandsVillan’s production facilities in Sweden, satisfy Norwegian building regulations. A network of retailers has been established in the central part of Østlandet (south east Norway), and the first houses were sold and completed in the latter part of 2009.
In autumn 2009, an agreement was signed with Mestergruppen. Under the agreement, members of Mestergruppen obtain the right to sell house models from the module house portfolio of BWG Homes. These houses are produced as modules in the Group’s factories in Sweden and are marketed by the members of Mestergruppen as private brands.