Countryside Partnerships delivers 'solid' Q3 performance

Housebuilder Countryside Partnerships said on Thursday that it had delivered a "solid" third-quarter performance, with completions broadly unchanged from a year earlier at 817 homes.

Countryside said partnerships adjusted revenue was up 20% at £219.0m, while its group net reservation rate was up 30% at 1.04 as the company worked to improve operational performance, augment controls and manage its cost base in order to enhance returns and cash generation.

The FTSE 250-listed firm its Q3 trading performance reflected "good progress" toward an exclusively partnerships business and continued to show improvement in operating performance since the first quarter.

Partnerships South and Home Counties continued to perform well, according to Countryside, while it also said there had been "a solid year-on-year improvement" in the Midlands and added its North division was beginning to "demonstrate a recovery" from challenges experienced at the start of the trading year.

Countryside noted it had decided to exit its site in Bardon following a review of the group's manufacturing facilities and now expects a reduction in the run-rate of manufacturing losses as a result.

During the period, Countryside also said it had completed a review of cost savings across the business, identifying at least £15.0m of savings on an annualised basis, with delivery now well underway. Additionally, Countryside stated it remains on track to deliver £450.0m of asset realisation from the exit of its legacy business, with £174.0m already realised at the end of June.

Countryside said: "We have made solid progress in Q3 and have a strong forward order book as we move into Q4, our most significant trading quarter of the year, in which approximately 40% of the Group's annual completions are expected. Our total forward order book at the end of June was £1.91bn, up 60% from the same date last year, and we are over 99% forward sold4 for FY22 as at the end of June.

"While we are mindful of the challenging macro-economic backdrop, we reiterate our FY 22 guidance of approximately £150.0m adjusted operating profit."

Reporting by Iain Gilbert at Sharecast.com