Profit slips at Countryside

Property Reporter
17th May 2021
construction 665

Housebuilder, Countryside, has reported that during the six months to March 31st 2021, pre-tax profit slipped from last year's £43.7m to £38.8m, with the business making a provision of £25m to cover the cost of remediating 20 of its schemes, identified as carrying defects.

The firm reports that revenue climbed 37% on an increased number of completions in its half-year from £481.2m in HY 2020 to £661m and also reported a cost of £3.3m towards the separation of its Housebuilding business from its Partnerships arm.

It said that since announcing its plans to reorganise the business last December, it had made excellent progress. Countryside expects to complete the review of the business in the second half of the year.

The company’s total completions rose 14% to 2,591 new homes, governed by a strong increase in private sales as the business completed on homes delayed by Covid-19. Its private average selling price rose 6% to £389,000.

Completions in its Housebuilding arm grew 36% to 653 homes, with those for private homes rising 83% to 533. Housebuilding’s revenue climbed to £265.2m from HY 2020’s £157.2m.

Countryside said that over the past six weeks, its net reservation rate had been at 0.82, with the business more than 90% forward sold across all tenures for the year.

Iain McPherson, Countryside’s group CEO, 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."

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