Housebuilder says 2015 started well
Price surge helps Cala Homes head for record profit and sales
Profit growth has been bolstered by a 27% rise in average selling prices from £423,000 to £537,000.
The company had 38 sites (1,478 plots) contracted during the eight month to the end of February with a potential gross development value of £564m and a gross margin in excess of 23%. Planning permission has been granted on 33 sites (938 plots) with a potential GDV of £417m.
Alan Brown, chief executive, said: “After an encouraging first half, trading since the start of 2015 has been ahead of expectation.
“We have seen increased site visitor numbers across our eight operating regions alongside a significant increase in online enquiries since the launch of our new website in December, as the improved availability of record low mortgage rates, combined with the strength of the UK economy and ongoing shortage of housing supply, continue to boost demand.
“We are continuing to see a sustainable level of sales price inflation across all of our regions while our land teams continue to secure a steady supply of high quality sites in desirable locations at or above our target hurdle rates, providing confidence that we can grow our future volumes substantially.
“Overall, the group has started the current year with strong momentum and we are well placed to deliver our first year of significant volume uplift as part of the group’s ongoing growth strategy.”