Countryside reports profit jump as CEO announces exit
UK housebuilder Countryside Properties reported a jump in profits as it announced chief executive Ian Sutcliffe is set to step down next year.
The figures
The developer said profit for the year ended 30 September was £168.4m, up from £148.6m the previous year.
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Revenue increased 21 per cent to £1.23bn, up from £1.08bn in 2018, and the company reported a 33 per cent jump in completions from 4,395 to 5,733.
Basic earnings per share were up 14 per cent to 37.7p and the developer announced a dividend per share of 16.3p, a 51 per cent increase on last year’s 10.8p.
Why it’s interesting
The developer said its partnerships division was strengthened by its expansion of its regional businesses outside of the south east, which helped to boost growth, and the full-year impact of its acquisition of Midlands housebuilder Westleigh, which it bought for £135m in April last year.
Meanwhile, its housebuilding unit came under pressure from challenging trading conditions, sending revenue down two per cent to £585.7m. The company has acquired 6,975 plots across 18 sites during the year, strengthening its land bank to 24,303 plots.
During the year the company launched a modular panel factor in Warrington, which it said is already producing the equivalent of 15 homes per week.
Sutcliffe announced he will retire from the board on 1 January to be succeeded by Iain McPherson, the current head of the group’s partnership’s south business. He will stay on as an employee until 21 March.
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What Countryside said
“We have continued our excellent growth trajectory during the past year and have exceeded our expectations in operating margins, return on capital employed and cash generation,” Sutcliffe said.
“Our differentiated partnerships division continues to go from strength to strength, while our housebuilding division is benefitting from operational efficiency and continued capital discipline to deliver improved returns.
“With strong demand from first-time buyers and ongoing political support, the board looks forward to delivering continued growth from both of our operating divisions.”