Cala Group delivers uplift in performance for Financial Year 2022 with turnover of £1.33bn and pre-tax profit of £169m
Cala delivered an excellent performance across 2022, achieving significant increases in revenue and pre-tax profit.
Strong market conditions in the first nine months of the year enabled Cala to sell out for 2022 in September, delivering a profit before tax (before exceptional items and revaluations) of £169.2 million (2021: £132.7 million). The number of homes sold increased to 3,027 during the year to 31 December 2022, compared to 2,904 in 2021, a 4.2% increase. This has resulted in turnover of £1,325.0 million, up 9% year on year (2021: £1,217.5 million).
Cala’s sales performance was excellent for the first nine months of the year, however this slowed during quarter 4 following the UK Government’s mini budget. Net private reservations during 2022 were 39.6 per week, compared to 47.7 during 2021, which reflects a 17% reduction on the previous 12-month period. The ASP in the year was £492,000 (2021: £462,000) and this increase reflects the mix of sites sold during the year as well as sales price growth. The Group achieved a net private reservation rate of 0.62 average weekly sales per development in the period which is a decrease of 18% since last year (2021: 0.76).
The fundamental shortage in the supply of new homes continues to support new homes delivery as buyers remain attracted to Cala’s outstanding quality of design and construction, alongside industry-leading customer service. Cala has had a positive start to 2023, with strong levels of interest continuing through our website and a rate of sale in line with expectations.
Kevin Whitaker, CEO at Cala Group, said:
“Cala’s excellent performance was attained through an increase in new home completions, strong sales price growth and the mix of homes sold during the year.
“We benefited from excellent market conditions in the first nine months of the year. During the final quarter of 2022, the impact of the UK Government’s mini budget on the financial markets directly influenced buyer confidence.
“Now more than ever, against the backdrop of increased fuel costs and reduced availability of second-hand homes, new homes offer a great alternative. Excellent energy and thermal efficiency help minimise energy use, while facilitators like part exchange support customers through their move.
“Cala is in a strong position to manage our way through changing market conditions. Our people have consistently demonstrated strong levels of commitment and determination despite any headwinds that arise. Their talent, experience and attitude, alongside the ongoing support of owners Legal & General, give me confidence in our prospects for 2023.”