Wren Homes, PLUS-quoted builder of retirement flats and bungalows, is thought to be considering a £2 million AIM float.

With 69 units either under construction or with planning permission, Wren, which made £1 million in the year to July 2005, lost an increased £262,000 at the interim stage. But that is seen as reflecting a usual imbalance in the Surrey-based company's year and analysts suggest full year results, due soon, should show a significant improvement on 2004-05.

Wren, which floated on PLUS (then Ofex) at 14.3p in 2001, recently appointed J.M.Finn as adviser. The company steered by managing director Paul Treadaway, is seeking to take advantage of 'a lack of good quality apartments and cottages for the active retired'.

Wren has completed a scheme of 28 retirement units at Warlingham, Surrey, which are selling at an average price of £360,000 and is starting a further development of luxury flats at Kenly in the same county. At 29.25p, the shares would benefit if the company does decide to make an AIM move.

Growth Company Investor’s award-winning team offer outstanding share recommendation performance. Get immediate access to all these recommendations – click here.