Countryside profit jumps 22%

Housebuilder Countryside Properties has announced a jump in annual operating profit amid strong demand from first-time homebuyers. For the year to 30 September, pre-tax profit increased by 22% to £180.7m, as revenue rose 20% to £1.02bn. During the year in its partnerships division it completed 3,019 new homes, which was up 38% on last year’s figure of 2,192. In the medium term, the company is expecting 10% to 15% completions growth. In 2019, it forecasts growth in excess of 30%, in part due to the acquisition of Westleigh Group. The growth will be largely in the private rented and affordable sectors, reducing its exposure to private for-sale homes to around 35% of total completions in the coming year. Countryside Properties acquired housebuilder Westleigh Group in a deal worth up to £135m in April. Ian Sutcliffe, Countryside group chief executive, said: “We have continued our strong growth trajectory during the past year and have exceeded our expectations in operating margins, return on capital employed and cash generation. “Our differentiated partnerships division continues to go from strength to strength, while our housebuilding division is benefiting from operational efficiency and continued capital discipline to deliver improved returns. With strong demand from first-time buyers and ongoing political support, the board looks forward to delivering continued growth from both of our operating divisions.” Separately, Countryside Zest, a joint venture between Countryside and charitable housing association L&Q Group, has sold the Beaulieu Square Neighbourhood Centre in Chelmsford, Essex, to London-based property investment company Natal Estates for almost £7.5m. This is expected to accelerate the development of the retail and service facilities available in the square. To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette