Results Centre

H1 2017 Results

Key Financials
  HY 2017 HY 2016 Change
Completions 1,437 1,095 +31%
Adjusted revenue £435.4m £312.8m +39%
Adjusted operating profit £70.4m £50.8m +39%
Adjusted operating margin 16.2% 16.2% -
Adjusted basic earnings per share 11.4p 5.0p +128%
Return on capital employed 25.7% 23.1% +260bps
 
Reported revenue £351.1m £286.2m +23%
Reported operating profit £53.2m £34.8m +53%
Net debt £35.0m £8.7m +£26.3m
Basic earnings per share 11.1p 3.1p +258%

Highlights

Group operational highlights

  • Trading in the first half ahead of expectations with good momentum into the second half
  • Net reservation rate of 0.89 (HY 2016: 0.79) from 48 sales outlets (HY 2016: 37 sales outlets)
  • Private Average Selling Price (“ASP”) of £441,000, down 13% as expected (HY 2016: £505,000) with underlying house price inflation of 6%
  • Group private forward order book of £347.1m, up 69% (HY 2016: £205.3m)

Housebuilding highlights

  • Completions: 450 homes (HY 2016: 292) up 54%
  • Adjusted operating profit: £34.5m (HY 2016: £27.8m) up 24%
  • Adjusted operating margin: 16.3% (HY 2016: 16.0%) up 30bps
  • Land bank: 20,472 plots (HY 2016: 18,273) of which 85% has been strategically sourced

Partnerships highlights

  • Completions: 987 homes (HY 2016: 803) up 23%
  • Adjusted operating profit: £38.5m (HY 2016: £23.2m) up 66%
  • Adjusted operating margin: 17.2% (HY 2016: 16.7%) up 50 bps
  • Land bank plus preferred bidder: 17,528 plots, up 18% (HY 2016: 14,914)

Outlook and Current Trading

The growth in active sites and increased sales rates have resulted in a sharp increase in completions which looks set to continue in the second half of the year. As a result, we expect profit to be ahead of market expectations. Our financial strength and accelerated delivery from our mixed tenure model provide the basis for further growth in both the short and medium term. We are achieving our ambition of increasing scale in our Housebuilding division. The further momentum within Partnerships leads us to upgrade our FY18 completion targets by 10 per cent in this division.

Commenting on the results, Ian Sutcliffe, Group Chief Executive, said:

“Our strong performance across the business in the first half exceeded our expectations. In particular, our Partnerships division once again delivered outstanding growth and returns. We continue to be highly successful at winning new business in this division, with three large sites secured in the first half, at Bromley, Maidenhead and Barking. We enter the second half of 2017 in an excellent position with 81 operational sites and a record private forward order book. With strong operational delivery and an increasing pipeline of future work, we see continued outperformance in the medium‑term and are upgrading our outlook for 2017 and 2018.”

Notes

“Countryside” or the “Group” refers to Countryside Properties PLC and its subsidiary companies. 

  1. Adjusted revenue includes the Group’s share of revenue of joint ventures and associate.
  2. Adjusted operating profit is defined as Group operating profit plus share of operating profit from joint ventures and associate excluding non-underlying items.
  3. Adjusted operating margin is defined as adjusted operating profit divided by adjusted revenue.
  4. Adjusted basic earnings per share is defined as adjusted profit attributable to ordinary shareholders, net of attributable taxation, divided by the weighted average number of shares in issue from the date of the IPO to 31 March 2016.
  5. Return on capital employed is defined as adjusted operating profit divided by average tangible net operating asset value. Tangible net operating asset value is calculated as net assets plus net debt less intangible assets. In prior periods, loans from the Group’s principal shareholder and accrued loan interest were added back to tangible net operating asset value.
  6. Net debt is defined as bank borrowings less unrestricted cash. Unamortised debt arrangement fees are not included in net debt.

Results archive

Date Title Presentation Report Webcast
18 May 2016 H1 2016 Results PDF, 1.6MB, opens in a new window pdf, 690KB, opens in a new window
Date Title Presentation Report Webcast
19 Nov 2015 Results for Year Ended 30 September 2015 pdf, 605KB, opens in a new window