The latest trading update from Cala Homes shows that the developer’s turnover and profit fell in 2023.
For the year up to 31 December 2023, Cala saw its pre-tax profit drop from £169million to £112million, a decrease of 33.6%. It also recorded a turnover of £1.26billion, a fall of 7.3% on the previous year.
Home completions also declined year-on-year, down 3.6% from 3,027 in 2022 to 2,917 in 2023.
Reports emerged earlier this month that parent company, L&G, is looking to sell the housebuilding brand, valuing the company up to £750million and bringing in Rothschild to handle the auction of the business.
L&G draws up plans to sell Cala
Commenting, Kevin Whitaker, CEO at Cala Group, said: “Cala delivered a robust financial performance in 2023. Despite market challenges, we maintained a sales rate of 0.63 in line with 2022 (0.62), securing revenue per site per week of £315,000. This consistent delivery has given us confidence to execute our strategy to invest in land for future years.”
“In 2023, Cala contracted 24 new sites, capable of delivering over 4,300 new homes. These sites have a gross development value (GDV) of £2.1 billion with the average selling price of around £500,000. We remain committed to this strategy and our land and planning teams across the UK are actively seeking further opportunities to invest in sustainable developments in desirable locations.”
“As of 10th March 2024, Cala had delivered 0.71 sales per site per week (average for financial year 2023: 0.63), and we are seeing encouraging levels of enquiries to our developments and website. Cala’s quality of design and construction, with outstanding customer service, as well as the enhanced energy-efficiency of new homes, continue to attract a new range of buyers.”
“Whilst still early to predict, this positive start to the year alongside improving economic fundamentals are reasons for optimism that the market could return to more normal conditions during 2024. The stabilising of interest rates, reductions in inflation and more competitive mortgage rates will improve affordability.”
