Countryside posts 42% surge in operating profit

Countryside has reported a 42% increase in operating profit on the back of rising completions.

Results highlights

Highlights

• Group completions up 14%, with adjusted revenue up 42%, driven by increased private for sale completions;
• Net cash of £106m: £109m net investment in Partnerships in the first half; further net investment of £100m expected in the second half, executing our medium-term growth plans;
• Provision of £25m for remedial work on historical high-rise developments;
• New sustainability approach with our pathway to net zero carbon to be published in the second half of 2021;
• 5 star HBF rating for the second year, with ongoing commitment to build quality;
• Good progress on internal reorganisation to facilitate housebuilding separation.

Outlook

The net reservation rate for the last six weeks has been strong at 0.82 and we are over 90% forward sold across all tenures for the year. At the end of March the total forward order book stood at £1,203m supporting delivery in the second half, despite delays in the planning system as a result of the pandemic. There is no change to the Board’s expectations for the full year.

Iain McPherson, Group Chief Executive, said: “We have seen a good recovery from 2020, with trading in line for the full year. We remain focused on executing our growth plans in Partnerships, with investment into three new operating regions and a strong bid pipeline, in line with our longer term plans. Our track record working with partners across Local Authorities, Housing Associations and private homeowners, together with our framework agreements and forward order book, position us well to deliver our medium-term growth targets.”