Countryside upbeat for current year, despite uncertain outlook

Updating on trading, the FTSE 250 homebuilder said adjusted operating profit for the year to 30 September was likely to be around £54m, in line with management expectations.

Total completions were 4,053 in 2020, down on the 5,733 recorded a year previously; of those, 1,454 were private, 1,691 were affordable, and 908 were in the private rented sector. The private average selling price was £364,000, £3,000 down from 2019’s figure.

The total forward order book was up 17%, however, at £1.4bn, while net cash was ahead at £98.2m, compared to £73.4m a year previously. Overall, the landbank stood slightly higher at 25,042 plots as at 30 September.

The group conceded that the pandemic – which closed building sites and temporarily halted the UK property market – had caused “significant disruption” to the business. But it added that demand had remained strong for all tenures of housing, and that its sites were now operating at around 95% of their normal delivery level.

Looking ahead, Countryside said: “While the broader economic outlook remains uncertain, we are well positioned for the current financial year with a strong forward order book.”

Iain McPherson, chief executive, added: “We have been pleased by robust customer demand throughout the second half, and our mixed-model tenure continues to prove resilient, positioning us well in the current market.”

Peel Hunt, which has a ‘buy’ recommendation on the stock and a target price of 380p, said there were “few surprises” in the pre-close statement.

As at 1145 BST, shares in Countryside were off 5% at 329p.