Cala Group reports strong momentum for 2022 as profits exceed £98m

Cala Group reports strong momentum for 2022 as profits exceed £98m

Housebuilder Cala Group has revealed a strong first half of the year, with profit before tax (PBT) in excess of £98 million, a 26% increase on the 2021 half year PBT of £77.6m.

A total of 1,527 units were completed to June 2022, an increase of 3% on the 1,479 units completed to June 2021.

For the six months ending 30 June 2022, turnover reached £688m, an increase of 15% on the £600m turnover to June 2021 .

The group added that it is on course to deliver uplift in units, turnover and pre-tax profit for the full year in 2022. At the same time, total home completions for 2022 are expected to top 3,100 – an increase of 7% on the 2021 total of 2,904 units.

The results also highlight strong market demand for Cala homes, with homes built by the group now 90% sold for 2022 financial year.

Sales per site per week in the six-month period was 0.77, this compares to 0.76 in 2021, based on a private average selling price in the period of £491,000 (H1 2021: £454,000).

Kevin Whitaker, CEO at Cala Group, said: “The first half of 2022 has seen the group deliver a very strong performance, ahead of forecast units, turnover and pre-tax profits. The strength of the sales market in 2021 has continued into this financial year and we have achieved a robust forward sold position of 90% private units to the 31st December 2022.

“Significant industry-wide supply chain challenges continue and I’m grateful for the hard work and expertise of our talented teams to deliver for our customers against this backdrop. Market demand has continued to support both strong sales rates and pricing, offsetting the ongoing construction cost inflation the industry is experiencing.”

He added: “We are confident in our ability to deliver a performance ahead of original expectations for financial year 2022. We are on track to achieve over 3,100 new home completions, a record for the Group, alongside an increase in turnover, demonstrating good progress towards our growth strategy to reach a revenue of £1.8bn by 2026.

“Whilst wider economic factors cast potential uncertainty and negative sentiment, the market remains favourable and we are well placed for 2023.”

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