Group on target for £1b billion revenue
Home builder Cala builds on doubling of profits to new record
The Falkirk based company says a 90% increase in profits to £50.9 million (£26.8m) on a 79% rise in revenue to £511.6m (£285.4m) keeps it on track for £1 billion turnover within five years.
The figures for the year to the end of June are the first relating to its new strategy and show a record volume of 993 completions, up 34% on the previous year.
An average selling price of £509,000 (2014: £423,000) is also the highest ever and have produced a record gross margin of 23.4%.
The company’s owned and contracted land bank is up 12% to 14,236 plots (2014: 12,690) with a potential gross development value approaching £5.2bn, up 11% on 2014 (£4.7bn).
Cala has contracted 1,806 plots during the year, taking the group’s longer term land bank to more than 11,000 plots.
Net bank debt fell to £117.8m (2014: £141.6m) resulting in a reduction in gearing to 32.4%.
Alan Brown, chief executive, said: “This has been another outstanding year for Cala.”
He said the growth trajectory has led to 169 recruits and a stepping up of its apprenticeship and graduate recruitment initiatives.
“Our focus now is on driving operational efficiency improvements throughout the group which will in turn flow through to improved operating margins and return on capital employed as we target group revenues of £1 billion within the next five years,” he said.