Cala Reports 'Strong' First Half Trading Performance

Cala Group has reported a "strong" first half performance in its trading update for the six months to 31 December 2016.

The company is predicting another record year of revenue and profits, with 17 sites (1,469 plots) contracted during the period, presenting a potential gross development value (GDV) of £640 million.

In addition, planning permission has been granted on 15 sites (1,533 plots) with a potential GDV of £640m.

With average selling prices down from £538,000 to £504,000, and net private reservations up 24% to 610 (2015; 490), the Group has now sold 80% of its units for the full year.

Chief Executive Alan Brown said the company is on course to deliver a fifth consecutive year of growth.

"The first half of the new financial year has seen the Group deliver a very strong performance and we are on course to deliver another record year of units, revenues and profits in what would be our fifth consecutive year of record growth," he said.


"Encouragingly, the positive first half performance has continued into the second half with positive trading momentum since the start of the calendar year.

"In line with our ambitious growth plans, we are certainly doing our bit to increase the supply of family homes across the UK. Our focus in 2017 remains on scaling up and optimising the operational efficiency of our eight regional businesses, to deliver sustainable growth and an annual capacity of up to 2,500 homes within four years."

He continued: "The fundamentals underpinning the UK housing market are supportive, the land market remains robust and the mortgage environment continues to be positive.

"Following the release of the Housing White Paper, we were pleased to see that the Government recognises the need to further reform the planning system and we particularly welcome their plans to ensure that planning departments are better resourced via increased planning fees.

"Planning departments have faced severe cuts in recent years which has in turn impacted developers' ability to get on site and start building so any measures that will see Local Authorities boost their planning resources are a definite step in the right direction."

(LM/JP)