Mar City PLC : Trading Update

3 February 2014 MAR CITY PLC

('Mar City' or 'the Company')

Trading Update

Mar City (AIM: MAR.L) the London and Midlands focused housebuilder today announces its trading update ahead of its final results for the year ended 31 December 2013.

Summary 2013

 Following a strong performance in the second half of the year, revenues will be in line with market expectations, a significant increase on the prior year and underpinned by contracted developments in the period.

 Increase in revenues has been generated from the ten contracts in place covering 648 new houses and apartments that have a combined contract value of £56 million of which approximately £35 million has now been delivered. The remaining £21 million is now expected to be delivered in 2014.

 Overall margins are expected to be materially ahead of market expectations and as a consequence the overall result for the year is now expected to be significantly ahead of expectations.

Outlook for 2014

 Successful land acquisitions for a total consideration of £30.8 million at the end of 2013 have secured over 500 housing units across eight sites, with four sites already under development.

 Strong new sales pipeline, benefitting from the 'Help to Buy' scheme which is helping first time buyers, young professionals and families into home ownership.

 Additional equity funding increased cash balances by a net £28 million which will be used to acquire additional new land during 2014 and a number of negotiations are already well advanced for sites in London, the South East and the Midlands.

Commenting, Tony Ryan, CEO of Mar City plc, said:
"Mar City performed very strongly during 2013, operating efficiencies have delivered improved margins and as a consequence results for the year are ahead of market expectations.
"The successful fund raising and acquisitions secured at the end of 2013 provide s a strong pipeline of new residential developments and we have continued to make very good progress in the short period since. This platform and improving market conditions underpin our confidence for 2014 which will mark a transformational period for Mar City as we continue to benefit from the growth in demand for high quality new homes for the private and public sector.
"We continue to bring more first time buyers, young professionals and families into home ownership ,, supported by a strong allocation under the Help to Buy scheme, and we remain dedicated in our strategy to maintain the high standard of the Mar City home to our customers.
"We look forward to reporting further progress as we work through the current year with further new developments coming on stream and we will continue to enhance the Group's land bank with acquisitions of sites in London, the South East and the Midlands."

Enquiries: Mar City PLC	www.marcityplc.com	www.marcityhomes.com
Tony Ryan, Chief Executive Marcus Jones, Finance Director		[phone]
WH Ireland Limited, Nomad and Joint Broker Mike Coe		www.wh-ireland.co.uk [phone]

Shore Capitai, Joint Broker

Dru Danford/Stephane Auton/Jamie Cameron

www. shorecap . co.uk

[phone]

Gable Communications

John Bick

marcity@gable comm unications. com

+44 (O) 20 7193 7463