Countryside Properties H1 completions jump 15% but selling prices drop

FTSE 250 housebuilder and urban regeneration partner Countryside Properties posted a 15% jump in first-half completions on Wednesday, but selling prices fell.

In the six months to the end of March 2018, total completions rose to 1,655 from 1,437 in the same period a year ago.

However, private average selling prices were down 11% to £392,000, with underlying sales growth of 3%. The net reservation rate was 0.87 compared to 0.89 and the company's forward order book declined to £327.6m from £347.1m the year before.

The partnerships division saw 19% growth in completions, while the average selling price fell in line with expectations to £308,000 from £368,000. In the housebuilding division, completions rose 7% and the average selling price was broadly flat at £531,000.

Countryside said current trading remains "robust", with visitor levels, cancellations and net reservations all in line with expectations. In addition, the acquisition of partnerships homebuilder Westleigh earlier this month is expected to be earnings enhancing from the current year.

The company said the increase in its active sites, up 16% to 94 and the acquisition of Westleigh will underpin continued earnings growth and increased cash generation.

Chief executive Ian Sutcliffe said: "We continue to deliver our strong organic growth trajectory with robust trading in all regions. We enter the second half in great shape and our acquisition of Westleigh will further increase our partnerships momentum by expanding our geographic reach and mixed tenure delivery."

At 0955 BST, the shares were up 0.8% to 362.80p.