CALA Group has announced a new long term target of building more than 3,000 units per annum, as it revealed a 34% increase in total home completions during the six months to December 31 2017 against the equivalent period in 2016.
During its half year, the housebuilder completed 939 homes. It said that despite this significant lift, it expected a larger proportion of its annual completions in its second half.
Net private reservations rose 40%, with private sales per site per week rising to 0.64 against the previous year’s 0.50.
CALA’s private revenue per site per week – which it said was a “more meaningful metric” of its performance given the group’s size and higher average selling price compared to its larger peers – was up 10% at £277,000. This was governed by an increased sales rate, although partially offset by a lower private average selling price as the company continues to move away from homes priced above £1 million.
The business said that it was “on track” to produce what would be a sixth consecutive year of “record” revenues and profits. It added that it remained set to deliver upon its target of 2,500 units per year and around £1 billion of revenue in 2020. But thanks to its continuing strong performance and consistent delivery against its growth targets, its management believed it would exceed these figures in subsequent years.
Alan Brown, CALA’s ceo, said its new target was ambitious. “But it is a recognition of our performance in recent years. Through our eight regions we can deliver more than 3,000 homes per year.”
Brown called for the government to accelerate the Housing White Paper, but also said: “The UK continues to face an urgent shortage of housing but it is abundantly clear that there is cross-party political support for a full range of initiatives to boost both construction and home ownership.”