Cala says new homes market remains ‘favourable’
Cala Group, the Scottish housebuilder, is optimistic for the second half of its trading year despite continuing supply chain challenges.
Chief executive Kevin Whitaker said the first half had seen the group ahead of expectations across profits and turnover.
In a trading update for the six months to the end of June, it said the 1,527 completions was an increase of 3% on the previous year.
Profit before tax came in 26% higher at just over £98 million, on a 15% rise in turnover to £688m.
Total completions for the year are expected to top 3,100, which would be an increase of about 7% on the 2,904 built in 2021.
Cala said it was now 90% sold for the 2022 financial year with an average selling price rising to £491,000 from £454,000 in the first half of 2021, reflecting continued high demand in the market.
Its optimistic outlook contrasted with some reservations over planning delays expressed by Persimmon last week and concern in the industry that some smaller firms are struggling with rising costs of materials and wages.
Mr Whitaker said: “Significant industry-wide supply chain challenges continue.
“Market demand has continued to support both strong sales rates and pricing, offsetting the ongoing construction cost inflation the industry is experiencing.”
He added: “Whilst wider economic factors cast potential uncertainty and negative sentiment, the market remains favourable and we are well placed for 2023.”
Cala is now a subsidiary of Legal & General Capital, the early-stage investment arm of Legal & General Group.