CALA Group on course to deliver another ‘record’ year
Housebuilder CALA Group said it is on track to deliver another “record” year following a near doubling of its profits last year.
An eight month trading update from the Edinburgh-based group reported record profits of £50.9 million for the 2015 year to June 30, compared to £26.8m in 2014.
Average unit house prices jumped 20 per cent in the year to £509,000 across 90 sites, and turnover rose 79 per cent to £511.6m.
CALA said private revenue per site is up 29 per cent in the eight months to February 29 to £255,000 compared with £197,000 for the same period a year earlier.
The group opened 19 new sites - 1,877 plots – in the period, which CALA says have a gross development value of £660m.
The group said that consistent UK government support for the housing market has undoubtedly had a positive impact on both supply and demand but added that Westminster’s focus on affordable housing and first time buyers via new initiatives such as the Starter Homes programme, is “misguided”.
Alan Brown, chief executive of CALA Group, said: “Following a strong end to 2015, we have continued our positive trading performance into 2016 and remain on course to deliver another record year of revenues and profits for the Group.
“While market conditions remain positive and Government measures to support the housebuilding industry have undoubtedly had a positive impact at the lower end of the housing ladder, we continue to believe that the most effective way to resolve the overall housing undersupply is to increase production further up the chain.
“Although support for affordable housing and first time buyers is clearly important, the requirement for greater numbers of four and five bed family homes is arguably even more critical when it comes to addressing the real housing needs of growing families across the country.
“With this in mind, our focus remains on scaling up our divisions to increase the number of homes we build and, with the infrastructure in place to deliver an annual capacity of up to 2,500 units, we feel we are well placed to play our part in delivering the family homes that the UK desperately needs.”