Countryside Properties Plc Strong completions growth driven by mixed-tenure delivery

[shareaholic app="share_buttons" id_name="post_below_content"]

Countryside Properties Plc (LON:CSP), a leading UK home builder and regeneration partner, today announced its unaudited results for the six months ended 31 March 2019.

Results highlights

	HY 2019	HY 2018¹	Change
Completions	2,362	1,655	+43%
Adjusted revenue²	£563.7m	£468.0m	+20%
Adjusted operating profit³	£89.4m	£80.6m	+11%
Adjusted operating margin⁴	15.9%	17.2%	-130bps
Adjusted basic earnings per share⁵	15.0p	13.7p	+9%
Dividend per share	6.0p	4.2p	+43%
Return on capital employed⁶	32.9%	27.8%	+510bps
Group total forward order book	£1,037m	£697m	+49%

Reported revenue	£507.0m	£398.8m	+27%
Reported operating profit	£60.2m	£63.5m	-5%
Net (debt)/cash⁷	£(42.1)m	£13.7m	-£55.8m
Basic earnings per share	12.9p	13.3p	-3%

Group highlights

· Strong current trading and on track to deliver volume and margin expectations for the full year

· Increased dividend payout ratio to 40% of adjusted earnings from continued cash generation

· As expected, adjusted operating margin lower due to the change in geographic and tenure mix following the Westleigh acquisition

· 140 active sites (HY 2018: 94) including 60 sales outlets (HY 2018: 52 sales outlets)

· Net reservation rate at top end of target range at 0.86 (HY 2018: 0.87)

· Private Average Selling Price (“ASP”) of £377k (HY 2018: £392k)

· 12,126 additional plots secured during the first half

· Non-underlying items include a non-cash impairment of inventory of £7.4m

Current trading and outlook

Following a strong second quarter, with a net private reservation rate at the top of our target range, we remain well placed to deliver on full year expectations. As expected, completions will be second half weighted but are underpinned by a strong forward order book and further outlet openings in the second half. Our geographic expansion following the integration of Westleigh provides us with a strong platform for future growth. Additionally, we continue to see attractive new business opportunities in both divisions to support our medium-term strategy.

Commenting on the results, Ian Sutcliffe, Countryside Properties Chief Executive, said:

“We have delivered excellent growth in the first six months of the year and have continued positive momentum into the second half. We see strong demand for our high quality homes and have underpinned margins with operational efficiency and the opening of our modular panel factory. We remain confident of delivering full year and medium-term expectations.”