Countryside Properties PLC Q1 2018 Trading Statement (8519C)
January 25 2018 - 1:00AM
UK Regulatory
TIDMCSP
RNS Number : 8519C
Countryside Properties PLC
25 January 2018
Countryside Properties PLC
Q1 2018 Trading Statement
Strong first quarter, trading in line with expectations for full
year
Countryside Properties PLC (the "Group"), a leading UK home
builder and urban regeneration partner, is today issuing a trading
update for the 13-week period from 1 October 2017 to 31 December
2017 in conjunction with holding its Annual General Meeting for the
year ended 30 September 2017.
First Quarter Highlights
-- Total completions up 47% to 852 units (Q1 2017: 581 units)
-- In line with our strategic objectives, private average
selling price ("ASP") down 11% at GBP394,000 with underlying sales
price growth of 3% (Q1 2017: GBP443,000)
-- Net reservation rates(1) at 0.70 (Q1 2017: 0.73)
-- Open sales outlets up 7% to 49 (Q1 2017: 46)
-- Strong private forward order book of GBP242.9m (Q1 2017: GBP292.9m)
-- Net cash of GBP65.1m driven by higher completions (Q1 2017: GBP86.0m net debt)
(1) Net reservations per active outlet per week
Divisional Performance
The record year-end forward order book has enabled a very strong
first quarter, with completions ahead of expectations and
accelerated cash delivery. With good visibility of future growth,
we expect performance for the full year to be in line with current
market expectations.
Our Partnerships division continues to thrive, with 50% growth
in completions and strong cash conversion. We have secured an
additional 1,128 plots during the quarter and have commenced
construction on five new sites in London. Private ASP reduced in
line with expectations to GBP319,000 (Q1 2017: GBP361,000) due to
the growth in the West Midlands region and mix in the Southern
region.
Housebuilding has also performed well, with completions up 39%.
We have maintained our strategic led land bank at 20,118 plots.
Private ASP was broadly flat at GBP545,000 (Q1 2017: GBP537,000)
with the repositioning of the division now largely complete. We
anticipate continued outlet growth in the remainder of the year as
we convert our active sites to open outlets.
Outlook and current trading
Current trading remains robust, with the net reservation rate
tracking in line with expectations and an underlying sales price
increase of 3%. We see the strongest demand in the price points
below GBP600,000, which represents over 90% of our private sales.
Our mixed tenure delivery and an increase in the number of active
sites, up 22% to 96, continue to underpin our sector leading
growth.
Ian Sutcliffe, Group Chief Executive, commented:
"We have had a strong start to the year. We entered FY 2018 with
a record forward order book which, combined with our mixed tenure
model, has enabled us to deliver sector leading growth in
completions and improved cash conversion. We remain on track to
deliver both our short and medium term plans."
- Ends -
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
Nina Coad
Oliver Sherwood
About Countryside
Countryside is a leading UK home builder specialising in place
making and urban regeneration. For the year ended 30 September
2017, we completed 3,389 homes with revenues of GBP1,028.8m.
Our business is focused on place making, which we deliver
through our two divisions, Housebuilding and Partnerships. 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. Our Partnerships division
specialises in urban regeneration of public sector land, delivering
private and affordable homes by partnering with local authorities
and housing associations.
Countryside was founded in 1958. It operates in locations across
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
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