Housebuilder expects strong growth as it pivots towards partnerships
Countryside has reported a 33% increase in completions for the year and returned to profit in a 鈥渟trong recovery鈥� from last year鈥檚 pandemic disruption.
In its preliminary results for the year to 30 September, the housebuilder reported 5,385 completions for the period, up from the 4,053 the previous year.
The increase was driven by a 65% increase in homes built for private sale, with 2,394 completions. Affordable completions rose by 25% to 2,107 homes although private rented sector completions decreased by 3% to 884 homes due to 鈥渄elays to site starts鈥�.
Countryside reported pre-tax profit of 拢85.4m, compared to a 拢1.9m loss the previous year, driven by a 54% increase in adjusted turnover from 拢988m to 拢1.56bn.
It said that it plans to grow its adjusted operating profit from 拢167.3m for this year to between 拢200m and 拢210m next year 鈥渁s the growth plans set out last year progress and our attractive market conditions are expected to continue鈥�.
Its private average selling price increased 4% in the year to 拢380,000, while its total forward order book stands at 拢1.53bn, a 7% increase on last year.
It said today that the board does not recommend paying a final dividend to shareholders 鈥済iven the excellent opportunities for us to invest in the partnerships business鈥�.
Countryside last year announced it was winding down its spec housebuilding division to focus on partnerships.
It has now established three partnerships divisions in the Chilterns, the South-west and south London and has a partnerships land bank of 52,903 plots.
The firm has increased the value of assets in its partnerships division from 拢103m to 拢610m over the past five years including 拢209m from the former housebuilding division.
It is aiming to achieve return on capital employed 鈥� a measure of the efficiency of capital investment 鈥� in its partnerships division from its current 20% to 40% over the next two to three years.
Countryside has begun to sell off assets from its housebuilding division 鈥� now termed 鈥渓egacy operations鈥� 鈥� that don鈥檛 fit the partnerships model.
It intends to raise 拢450m from the sales to return to shareholders. To date it has raised 拢50m and returned 拢49m to shareholders via share buy backs.
John Martin, chair of Countryside, said: 鈥淐ountryside has a clear path to becoming 100% focused on our differentiated and market-leading mixed tenure partnerships business.
鈥淪ince we announced the strategy earlier this year, we have made excellent progress in establishing the new division in the Home Counties where we have a wealth of opportunities to bring our award-winning proposition to a new generation of homeowners and tenants in an area where it is sorely needed.鈥�
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