It sold 993 private homes in the year, up 34% compared to the previous year, at a substantially higher average selling price of £509,000 (2014: £423,000). Total group revenue was up by 79% to a record £511.6m and house sales gross margin also increased to 23.4% (2014: 22.8%).
With the financial backing of its investment partners Patron Capital and Legal & General, CALA continued to invest in land during the financial year, contracting on 56 new sites in premium locations over the period, which will deliver an estimated Gross Development Value (GDV) of £953m. The Group’s owned and contracted landbank now stands at 14,236 plots with a potential GDV approaching £5.2bn, reflecting the Group’s success in the land market and the first full year contribution from its acquisition of Banner Homes in March 2014.
Management believe that the Group’s operating platform and regional network of eight regional businesses has the potential to build 2,000 to 2,500 homes per annum based on a continuation of current market conditions. As a result, the Group’s medium-term financial targets are to deliver revenue of c£1bn within five years and to optimise operational efficiency by 2018, with plans to achieve a return on capital employed in excess of 20% from the 2016 financial year.
CALA is proud that, while growing considerably, it has continued to deliver industry leading customer service, achieving the maximum five stars for the sixth year running in the independent National New Home Customer Satisfaction Survey run by the Home Builders Federation (HBF). In the financial year the Group also received numerous industry accolades including “Scottish Housebuilder of The Year 2015” at the Scottish Home Awards, as well as the silver award for the UK’s Best Medium Housebuilder” from What House?
Commenting on the Group’s performance, Alan Brown, Chief Executive, said: “This has been another outstanding year for CALA and the first full year of our new strategy, during which we have built on the strong momentum generated by the Group last year and recorded exceptional growth across all of our key metrics, delivering record revenue and profits and improving return on capital employed whilst maintaining our clear focus on the premium segment of the home building market and our commitment to customer service.
“We are now operating from around 90 sites in eight regions around the country and are benefitting from this significantly increased presence, particularly in southern England. This growth trajectory has led to us continuing our recruitment programme apace, welcoming 169 new members of staff to the business and stepping up our apprenticeship and graduate recruitment initiatives across the Group.
“Our focus now is on driving operational efficiency improvements throughout the Group which will in turn flow through to improved operating margins and return on capital employed as we target Group revenues of £1 billion within the next five years through the delivery of high quality, well designed, sustainable homes and communities in prime locations across the UK.”
To download a PDF of the Results for the Financial Year Ended 30th June 2015 Press Release, click here.
To download a PDF of CALA’s Trading Update for the eight months to 29th February 2016, click here.