As foreshadowed here on September 29, retirement accommodation builder Wren Homes, plans a £2 to £3 million AIM float.

J.M.Finn is broker and nominated adviser to Surrey-based Wren, which has today announced a 54 per cent pre-tax profit increase to £1.6 million in the year to July on turnover 44 per cent up at £3.3 million. Wren, which floated on PLUS (then Ofex) in 2001 has seen its shares rise from 14.3p then to 32p today, up 0.5p this morning.

The company, which builds retirement flats and bungalows in the South East, has 69 ‘units’ either under consideration or with planning permission. 4-05. Steered by managing director Paul Treadaway, Wren is seeking to take advantage of ‘a lack of good quality apartments and cottages for the active retired’. The company recently 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 Kenley, in the same county.

At today's price, Wren’s shares value the company at £10.1 million, with a price/earnings ratio of nine. That is half the rating accorded is already-quoted sector peer McCarthy & Stone and, even though the float is expected to value Wren at around £12 million, that suggests significant future growth potential.