This record performance was driven by an increase in the Group’s private average selling price to £538,000 (2015: £509,000) due to a change in product mix. Total group revenue was up by 15% to a record £587.1m and profits before tax rose by 18% to £60.1m.
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 30 new sites in premium locations, which will deliver an estimated Gross Development Value (GDV) of £1.0bn. The Group’s owned and contracted landbank now stands at 15,399 plots with a potential GDV approaching £5.5bn, reflecting the Group’s continued success in the land market.
Management believes 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 four years and to optimise operational efficiency by 2018.
CALA is proud that, while growing considerably, it has continued to deliver industry leading customer service, achieving the maximum five stars for the seventh 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 ‘Large Housebuilder of the Year’ at the Scottish Home Awards for the second year running, as well ‘Large Business of the Year’ at the prestigious Scottish Business Awards
Commenting on the Group’s performance, Alan Brown, Chief Executive, said:
“2016 has been another record year with profits topping £60m for the first time in the Group’s history. Despite headwinds in some of our markets, we have continued to build on the strong momentum we have generated over recent years, once again delivering robust volume and revenue growth while still achieving incremental improvements in our return on capital employed.
“Our growth strategy remains to focus on driving operational efficiency improvements throughout the Group as we continue scaling up our divisions. Alongside this, we continue to invest in building the size and capability of our teams, welcoming almost 100 additional members of staff to the business including our ongoing increase of apprenticeship and graduate recruitment initiatives across the Group.
“Overall, we remain on course to deliver an annual capacity of up to 2,500 units within the next four years through delivering premium quality, well designed homes and communities in prime locations across the UK.”
To download a PDF of the Results for the Financial Year Ended 30th June 2016 Press Release, click here.
To download a PDF of CALA’s Trading Update for the eight months to 29th February 2016, click here.