According to a trading statement from the business, pre-tax profit for the period was “in excess of” £98m against the £77.6m achieved in the first half of 2021, with turnover during the half year rising 15% to £688m, and completions climbing by 3% to 1,527 units.
The sales rate per site per week was broadly the same as H1 2021, at 0.77 (2021: 0.76). Private average selling prices rose from last year’s £454,000 to £491,000.
For its full year, Cala said it was set to deliver an improvement in units, turnover and pre-tax profit. It expects home completions for 2022 to “top” 3,100 – an uplift of 7% on FY 2021. In 2021, the company produced a turnover of £1.24 billion and pre-tax profit of £132 million.
Cala noted "strong market demand” for its homes and is now 90% sold for the 2022 financial year. It also said that its increased sales price was offsetting increased build costs.
The firm added that following its commitment to the government’s building safety pledge as stated in April, it was confident that any remedial work required on relevant buildings “will not be material”. It has undertaken a review of its historical property portfolio.
Kevin Whitaker, Cala Group’s CEO, said: “The first half of 2022 has seen the group deliver a very strong performance, ahead of forecast units, turnover and pre-tax profits. The strength of the sales market in 2021 has continued into this financial year."
At the same time, he noted “significant” industry-wide supply challenges. "I’m grateful for the hard work and expertise of our talented teams to deliver for our customers against this backdrop. Market demand has continued to support both strong sales rates and pricing, offsetting the ongoing construction cost inflation the industry is experiencing. “
He concluded: “We are confident in our ability to deliver a performance ahead of original expectations for financial year 2022. We are on track to achieve over 3,100 new home completions, a record for the group, alongside an increase in turnover, demonstrating good progress towards our growth strategy to reach a revenue of £1.8bn by 2026.”
