Countryside Properties completions jump 47%

Countryside Properties said on Thursday that it had a “strong” first quarter and is trading in line with expectations for the full year, as it reported a 47% jump in total completions.

In the 13 weeks to 31 December 2017, completions rose to 852 units from 581 in the same quarter a year ago. Meanwhile, the private forward order book came in at £242.9m versus £292.9m and net reservation rates were 0.70 compared to 0.73.

In line with the group’s strategic objectives, the private average selling price was down 11% to £394,000, with underlying sales price growth of 3%.

Countryside said the record year-end forward order book has enabled a very strong first quarter, with completions ahead of expectations and accelerated cash delivery.

“With good visibility of future growth, we expect performance for the full year to be in line with current market expectations,” it said.

In the Partnerships divisions, it saw 50% growth in completions and strong cash conversion and has secured an additional 1,128 plots during the quarter. It also started construction on five new sites in London. The private ASP fell to £319,000 from £361,000, in line with expectations, due to growth in the West Midlands region and mix in the Southern region.

In the housebuilding division, completions were up 39% and Countryside said it maintained its strategic led land bank at 20,118 plots. The private ASP was broadly flat at £545,000, with the repositioning of the division now largely complete.

Countryside said current trading remains robust, with the net reservation rate tracking in line with expectations and an underlying sales price increase of 3%.

“We see the strongest demand in the price points below £600,000, which represents over 90% of our private sales. Our mixed tenure delivery and an increase in the number of active sites, up 22% to 96, continue to underpin our sector leading growth.”

Chief executive Ian Sutcliffe said: "We have had a strong start to the year. We entered FY 2018 with a record forward order book which, combined with our mixed tenure model, has enabled us to deliver sector leading growth in completions and improved cash conversion. We remain on track to deliver both our short and medium term plans."