TIDMCSP
RNS Number : 2351L
Countryside Properties PLC
18 April 2018
18 April 2018
Countryside Properties PLC
H1 2018 Trading Statement
Robust trading and further growth from acquisition
Countryside Properties PLC (the "Group"), a leading UK home
builder and urban regeneration partner, is today issuing a trading
update for the 6-month period from 1 October 2017 to 31 March
2018.
Highlights
-- Total completions up 15% to 1,655 units (H1 2017: 1,437 units)
-- In line with our stated objectives, private average selling
price ("ASP") down 11% at GBP392,000 with underlying sales price
growth of 3% (H1 2017: GBP441,000)
-- Net reservation rate(1) at 0.87 (H1 2017: 0.89)
-- Open sales outlets up 8% to 52 (H1 2017: 48)
-- Strong private forward order book of GBP327.6m (H1 2017: GBP347.1m)
-- Net cash of GBP13.7m (H1 2017: GBP35.0m net debt)
-- Acquisition of Westleigh Group Limited for up to GBP135.4m since half year end
(1) Net reservations per open sales outlet per week
Performance
Group completions and revenue are in line with expectations,
with accelerated cash delivery helping to fund the acquisition of
Westleigh Group Limited ("Westleigh"), announced on 12 April
2018.
Our Partnerships division continues to grow strongly, with 19%
growth in completions. Private ASP reduced in line with
expectations to GBP308,000 (H1 2017: GBP368,000) due to increased
completions from our West Midlands region. We continue to win new
business with an additional 3,409 plots secured during the first
half. We now have 21,684 Partnerships plots(2) secured, including
those with preferred bidder status, which represents over 9 years
of future work. Our bid pipeline continues to grow and now stands
at over 50,000 plots.
Housebuilding completions were up 7% in the period with private
ASP broadly flat at GBP531,000 (H1 2017: GBP538,000). We maintained
our strategic-led land bank at 19,939 plots of which 29% are owned
with the remainder controlled by options or conditional
contracts.
Outlook and current trading
Current trading remains robust, with visitor levels,
cancellations and net reservations all in line with expectations.
Underlying sales price growth has been 3% while build cost
inflation, particularly in London and the South East, has moderated
somewhat to also be around 3%.
The acquisition of Westleigh, a partnerships home builder, for a
total consideration of up to GBP135.4 million on a cash free debt
free basis has been funded from existing facilities and is expected
to be earnings enhancing from the current year.
The increase in our active sites, up 16% to 94, and the
acquisition of Westleigh, which completed 1,159 homes in the year
ended 31 March 2018, will underpin continued earnings growth and
increased cash generation.
Ian Sutcliffe, Group Chief Executive, commented:
"We continue to deliver our strong organic growth trajectory
with robust trading in all regions. We enter the second half in
great shape and our acquisition of Westleigh will further increase
our Partnerships momentum by expanding our geographic reach and
mixed tenure delivery."
(2) Excluding the 4,981 plots acquired with Westleigh on 12 April 2018
- Ends -
There will be a conference call for analysts and investors held
today at 0800hrs (BST):
Standard dial in: +44 (0)20 7192 8000
Dial in UK Free Call: 0800 376 7922
Dial in UK Local Call: 0844 571 8892
Conference ID: 2777578
Our 2018 half year results will be announced on 17 May 2018.
Enquiries:
Countryside Properties - 01277 260 000
Ian Sutcliffe - Group Chief Executive
Rebecca Worthington - Group Chief Financial Officer
Victoria Prior - Investor Relations & Strategy Director
Brunswick Group LLP - 020 7404 5959
Nina Coad
Oliver Sherwood
About Countryside
Countryside is a leading UK home builder specialising in place
making and urban regeneration. For the year ended 30 September
2017, we completed 3,389 homes with revenues of GBP1,028.8m.
Our business is focused on place making, which we deliver
through our two divisions, Housebuilding and Partnerships. The
Housebuilding division, operating under Countryside and Millgate
brands, develops sites that provide private and affordable housing,
on land owned or controlled by the Group. Our Partnerships division
specialises in urban regeneration of public sector land, delivering
private and affordable homes by partnering with local authorities
and housing associations.
Countryside was founded in 1958. It operates in locations across
London, the South East, the North West of England and the West
Midlands.
For further information, visit
www.countryside-properties.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTFKODBABKDCQD
(END) Dow Jones Newswires
April 18, 2018 02:00 ET (06:00 GMT)
Countryside Partnerships (LSE:CSP)
Historical Stock Chart
From Apr 2024 to May 2024
Countryside Partnerships (LSE:CSP)
Historical Stock Chart
From May 2023 to May 2024