Announcing its preliminary results for the year ending September 30 2021, the firm said that during the period, its total completions reached 5,385 against last year’s 4,053. This was driven by a 65% uplift in private home completions to 2,394 homes, with the business completing on properties deferred by the pandemic last year.
The company’s pre-tax profit recovered to £85.4 million after 2020’s £1.9 million loss. Its adjusted revenue climbed 54% to £1,526.2 million.
Countryside’s net reservation rate was 0.74, slightly lower than 2020’s 0.78 with its “strong forward sales position as we entered the year”. The private average selling price of its homes increased 4% to £380,000.
It is aiming to achieve adjusted operating profit in the range of £200 million to £210 million in the next financial year – in 2021 this was £167.3 million, up from 2020’s £54.2 million.
Around £40 million of the 2022 operating profit target will be from “legacy” housebuilding operations. This follows Countryside’s announcement in July that it would wind down its Housebuilding arm, with the business deciding to “focus all of its resources” on its Partnerships division.
Housebuilding/”legacy operations” performed strongly during the year thanks to the business working through build delays and private sales governed by Homes Counties demand and “government incentives for new homes buyers”.
In 2021, private completions under the legacy business increased to 745 against last year’s 469. Under Partnerships, these rose to 1,649 homes compared to 2020’s 985.
Under its new Partnerships-focused structure, Countryside has established a Partnerships Home Counties division to take in people and resources from Housebuilding. A small number of existing Housebuilding sites and those in the strategic land bank which fit the Partnerships’ model will move to that division. Those that do not are being sold off, with Countryside hoping to raise “at least” £450 million from these sales to return to shareholders.
Iain McPherson, Countryside’s group CEO, said: "We have achieved a strong recovery from Covid, with adjusted revenue growing by 54%, with a continued focus on quality of delivery.
“After a strategic review of the business, we have the structure and the team to continue to grasp the compelling opportunity that is ahead of us. This will see us create places people love, whilst delivering strong growth and attractive returns for shareholders over the medium term."
