Tuesday 29 November 2016

Countryside targets West Midlands as profits soar

Countryside Properties is expanding its partnerships business to the Midlands after delivering strong profit and review growth across the group.

The house building and partnerships homes group has opened a Wolverhampton office and will shortly start its first development of 186 homes at Rowley Regis.

Ian Sutcliffe, group chief executive, said he saw strong potential for the partnerships business as the group announced its first full-year results after returning to the Stock Market in February.

Another year of strong growth saw total completions rise 12% to 2,657 homes, with private average selling prices up 21% to £465,000.

This lifted group and joint venture revenue a quarter to £777m with operating profit up a third to £122m.

House building and partnerships trading highlights

Housebuilding highlights

•Completions: 783 homes (2015: 653) up 20%
•Adjusted operating profit: £66.8m (2015: £51.6m) up 30%
•ROCE: 17.7% (2015: 16.6%) up 110bps
•Land bank: 19,322 plots (2015: 18,410) of which 89% has been strategically sourced

Partnerships highlights

•Completions: 1,874 units (2015: 1,711) up 10%
•Adjusted operating profit: £55.6m (2015: £39.6m) up 40%
•ROCE: 70.7% (2015: 69.4%) up 130bps
•Land bank plus preferred bidder: 14,504 plots, up 35% (2015: 10,760)

Sutcliffe said: “We enter the 2017 financial year in a strong position with an industry leading land bank and record private forward order book.

“Our strategy remains to deliver growth, increasing returns and capital efficiency from our balanced business models of house building and partnerships.

“We see significant growth opportunities in partnerships with increased estate regeneration in London and our geographic expansion into the West Midlands, while our increased scale and operational efficiency in housebuilding will continue to improve returns.”



from Construction Enquirer http://www.constructionenquirer.com/2016/11/29/countryside-targets-west-midlands-as-profits-soar/

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