TIDMCSP
RNS Number : 2421T
Countryside Properties PLC
11 October 2017
11 October 2017
Countryside Properties PLC
FY 2017 Trading Statement
Countryside Properties PLC (the "Company"), a leading UK home
builder and urban regeneration partner, is today issuing a trading
update for the year from 1 October 2016 to 30 September 2017. The
Company will report its full year results on Wednesday 22 November
2017.
Operational Highlights
-- Completions up 28% to 3,389 homes (2016: 2,657 homes)
-- Net reservation rates(1) increased to 0.84 (2016: 0.78)
-- Open sales outlets up 9% at 47 (2016: 43)
-- Private average selling price ("ASP") reduced by 8% to
GBP430,000 in line with expectations, with underlying sales price
growth of 5%
-- Private forward order book up 8% at GBP242.4m (2016: GBP225.4m)
(1) Net reservations per open outlet per week
Partnerships
Our Partnerships division has delivered a strong performance
with total completions up 17% at 2,192 homes versus 1,874 homes in
2016. The private ASP in our Partnerships division increased by 12%
to GBP343,000, driven by strong price growth in outer London and
regional cities.
Private completions were up 31% to 825 homes, Private Rental
Sector ("PRS") units were broadly flat at 721 and affordable homes
were up 27% to 646 in the period. We had 23 open sales outlets as
at 30 September 2017 (2016: 18) with a further 23 sites under
construction.
Housebuilding
Our Housebuilding division has also had an excellent year of
growth with total completions up 53% at 1,197 homes (2016: 783),
including 837 private homes, up 68% on the prior year. This
performance demonstrates a step change in the scale of the
business. Private ASP in Housebuilding reduced by 23% to GBP515,000
in the period, in line with our plans to reduce our exposure to
higher end product but also as a result of slower sales rates at
the higher end.
The increase in sales reservations and completions has led to
several sales outlets closing earlier than anticipated. We had 24
open sales outlets at 30 September 2017, compared to 25 one year
ago. However, we have a further 18 sites already under construction
to ensure we increase the number of open selling outlets in
FY18.
Land and Planning
We had another very successful year in winning new business in
the Partnerships division, underpinning our longer-term growth
plans. In addition to those sites already in the land bank,
including those with preferred bidder status, we secured 7,030 new
plots in the period. We now have 18,985 Partnerships plots under
our control (2016: 14,504 plots). This represents approximately
nine years' supply at current volumes and provides significant
visibility.
In line with our strategy, we have maintained the land bank in
our Housebuilding division and have acquired 2,896 plots on 16
sites during the period. The Housebuilding land bank now stands at
19,826 plots (2016: 19,322 plots) of which 83% has been sourced
strategically.
Outlook
Customer demand has remained strong for all tenures of homes
throughout the year. Low interest rates and increased demand from
first time buyers, supported by Help to Buy, continue to underpin
private for sale homes, while strong demand for affordable and PRS
further support our continued growth. We continue to successfully
convert our strategic land bank to open more sites and, as a
result, our Housebuilding business is on its way to optimal scale.
This, combined with our excellent pipeline of Partnerships work and
a record year end forward order book, gives us great confidence to
deliver our medium-term plans. We are encouraged by the continued
political support for all tenures of housing with the recently
increased commitments to both Help to Buy and affordable housing
and we feel we are ideally placed to benefit from these
policies.
Ian Sutcliffe, Group Chief Executive, commented:
"We continue to see industry leading growth from our mixed
tenure delivery and excellent returns from our innovative
Partnerships business model. We have successfully positioned our
business to meet the strongest areas of customer demand and are
greatly encouraged by the continued and increased political support
for mixed tenure housing. We see further opportunities for both our
Partnerships and Housebuilding divisions and remain entirely
confident in delivering our medium-term growth plans."
- 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: 80363045
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
Will Rowberry
Oliver Sherwood
About Countryside
Countryside is a leading UK home builder specialising in place
making and urban regeneration. Our business is centred around two
complementary divisions, Partnerships and Housebuilding. Our
Partnerships division specialises in urban regeneration of public
sector land, delivering private and affordable homes by partnering
with local authorities and housing associations. 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. Countryside was founded in 1958. It
operates in locations across outer 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
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