Commercial property firm-turned-house-builder Swan Hill is starting to reveal the fruits of its change of direction. Results for the 6 months to June showed pre-tax profits (before last year's exceptionals) up 35% to £3.7m. Turnover was roughly stable at £39.7m, as commercial property revenues fell to £0.8m (£17.7m) and housing sales increased from £21.4m to £39m. Swan Hill reports that the southern counties market, where its operations are based, 'moved ahead strongly'. The firm benefited from selling from 12 principal sites, compared with 7 in the comparable period last year. Some 148 units were sold, against 111 last year, with the average price moving from £192,000 to £246,000. Finance director Colin Archer reports having seen some 'cooling' of the market, but adds: 'This is what we are hoping for.' Competition for land is strong and the land-bank at the end of June stood at 698 plots, all with planning consent, (about two years' supply). NAV remains well above the company's share price - a rarity in the house-building sector. But this attraction is somewhat counteracted by a prospective p/e that is above the sector average. All assets are valued at cost rather than market value. Forecasts from house broker Brewin Dolphin suggest pre-tax profits of £7.5m this year, with EPS at 9.4p.