CALA Group has unveiled a sixth consecutive year of strong performance and named its new chief executive in its first update since insurer Legal & General assumed outright ownership of the Scottish-based housebuilder in March.
The group, which has appointed industry veteran Kevin Whitaker to the top job, saw private home completions rise 23 per cent to 1,620 in the 12 months to June 30. The average selling price reduced to £463,000 compared to £497,000 in 2017, due primarily to site mix and a planned move away from homes priced above £1 million where trading is generally more difficult.
Total home completions were up 29% to 2,171 while 29 new sites (2,836 plots) were contracted during the year with a potential gross development value of £1.1 billion. Private revenue per site per week was up 2% to £277,000 (2017: £271,000) with private sales per site per week of 0.62 (2017: 0.56)
Affordable housing activity rose substantially in the year with a 55% increase in completions.
Graham Reid, interim chief executive of Cala Group, said: “The past 12 months have been a landmark year for Cala. The continued strength of our performance produced a sixth consecutive year of outstanding delivery, while we were also able to further expand our growth targets based on our consistent track record and investment in the business in recent years.
“The overall market backdrop for Cala has remained broadly supportive and we enter the remainder of the extended financial year in a positive position, with a healthy level of forward private reservations. Looking ahead, we remain confident of continuing our strong growth momentum with the benefit of the backing of Legal & General, one of the most highly-respected, blue-chip investors who shares our long-term vision.”
Mr Reid said the group had secured 499 forward private reservations – 31% up on last year – with a GDV of £211m. He added that Cala continued to have “relatively limited direct exposure” to Help to Buy with only 16% of private sales completed using the product during the period.
During the year, Cala secured land in premium locations including Oxford, Beckenham, Hitchin, Benson and Edinburgh.
Mr Whitaker, currently one of Cala’s two regional chairs, joined the company in 1999 and is a previous managing director of Cala Homes East. He succeeds Alan Brown who retired in April.
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