Swan Hill is progressively morphing into a pure housebuilder by divesting of its commercial property interests, and its interim results should be viewed in this context. Pre-tax profits were static at £2.6m for the six months to June, with turnover up from £31.1m to £39.1m. However, the company reports that its transformation is progressing 'extremely well', as it now has a strong land bank of 750 plots (with a value in excess of £150m) on which to build and also expects to be selling from 12 sites in the second half, compared to seven in the first. Chief executive John Theakston adds that he expects the average selling price for the year as a whole to fall 'just shy of' £250,000 - which should result in a substantially increased second half profit, as the average selling price in the first was £198,000. By the year-end, about 80% of revenues should be from the housebuilding side, rising to 95% for the end of 2002. A forward p/e of 8 at the current share price is expensive when compared to other housebuilders, yet it also reflects a substantial 40% discount to net asset value (127p per share). As yet, the market awaits the increased earnings which are promised. Theakston says 'we will either achieve this or someone else will come in', a nod to the consolidation currently gripping the sector.