Countryside Properties has said its housebuilding business is performing as expected in a trading update for the 13-week period from 1 April 2019 to 30 June 2019.
Q3 Operational Highlights
- Performance in line with full year expectations
- Total completions in line with prior year at 1,055 homes (Q3 2018: 1,060 homes)
- Private average selling price (“ASP”) flat at £374,000 (Q3 2018: £376,000)
- Net reservation rate1 up 12% to 1.00 (Q3 2018: 0.89)
- Open sales outlets down 4 at 56 (Q3 2018: 60)
- Total forward order book up 17% at £1,135m (Q3 2018: £967m)
- Net debt of £128.2m in line with our expectations (Q3 2018: £91.9m)
Total completions were up 5% to 865 homes (Q3 2018: 823 homes), and the housebuilder said that it anticipates further growth from the new Midlands regions.
It said that its housebuilding division also performed in line with expectations during the quarter, with total completions of 190 homes (Q3 2018: 237 homes) as a result of anticipated build phasing.
“We continue to see strong customer demand across both divisions for all tenures of homes,” the statement said. “As previously referenced, we have a significant delivery programme in the fourth quarter due to the phasing of construction. However, we are fully reserved for private sales for the full year and fully sold for both PRS and Affordable homes.
“With build programmes on track, our focus now continues to be one of converting our private for sale reservations into completions in the fourth quarter. We are active on a total of 135 sites (Q3 2018: 122 sites) and remain on track to deliver full year expectations.”
Ian Sutcliffe, Group Chief Executive, said: “We have maintained our growth trajectory, while continuing to improve build quality and customer satisfaction. The business is performing well and we are laying the foundations for future growth. We have continued to invest, with the increased production from our modular panel factory in Warrington now being realised. We continue to secure new business opportunities across both divisions.
“The demand for housing of all tenures remains unfulfilled and we are encouraged by positive sales rate trends despite the ongoing political uncertainty.”
