Countryside to open modular panel timber frame factory

Aaron Morby 1 week ago
Share

Countryside Properties is pressing ahead with plans to open a closed panel timber frame factory in Warrington to help drive business growth.

Chief executive Ian Sutcliffe is ramping up modular timber-frame capability to drive margin growth

The private house building and partnership homes business revealed plans to create a strong modular business as it delivered strong growth in the first half of the year with pre-tax profit up 22% to £74m on revenue ahead 14% at £400m.

The group’s mixed tenure partnership homes division is now bigger than traditional house building, and will expand further following the acquisition of the Midlands- based Westleigh housing group for £135m in April.

This acquisition also included the Westframe timber frame factory based in Leicester, where Countryside plans to make further investment.

Today Countryside also revealled plans to invest £6m in a new closed panel timber frame factory of around 130,000 sq ft in Warrington. Equipment is due to be delivered in the second half of the year.

Once operational the new factory will service our northern and West Midlands regions with a total capacity of 1,500 units per annum helping to secure our supply chain for the longer-term.

Across the group Countryside raised completions by 15% to 1,655 homes in the first half of the year to March 2018.

Private unit completions increased by 23% to 773 homes. Private average selling price selling prices dropped 11%to £392,000 driven by an increase in private completions from its Partnerships business, particularly the regional businesses outside London where average selling prices are lower. 

Underlying house price inflation was  3% in the half year, while underlying build cost inflation was around 3-4%.

Ian Sutcliffe, Group Chief Executive, said: “We continue to deliver our strong organic growth trajectory with robust trading in all regions. We enter the second half in great shape and our acquisition of Westleigh will further increase our momentum by expanding our geographic reach and mixed tenure delivery.

“With continued strong growth in Partnerships and improved efficiency and returns in the Housebuilding division we remain confident of maintaining our sector leading growth over the medium-term.”

Partnerships is now the main profit driver delivering a 19% margin compared to 17% at the house building arm.

This business is now driving longer-term growth plans. It secured secured 3,409 new plots in the first half including 1,300 plots at Ebbsfleet, Kent and a total of 913 plots across five sites in the West Midlands region. 

Partnerships now has 21,698 plots under its control, representing nine years’ supply at current volumes.

Countryside Property trading divisions

Partnerships highlights

  • Completions: 1,172 homes , up 19%
  • Operating profit: £47m,  up 22%
  • Operating margin: 19.0%, up 180bps
  • Land bank plus preferred bidder: 21,698 plots, up 24%

Housebuilding highlights

  • Completions: 483 homes, up 7%
  • Operating profit: £37m, up 8%
  • Operating margin: 16.9%, up 60bps
  • Land bank: 19,741 plots (HY 2017: 20,472 plots)

Latest news

Flooring specialist Polydeck Group in administration

Firm was locked in a long-running payment row with Balfour Beatty
1 day ago

Mace on board for £100m Olympia revamp

Exhibition centre will remain open during major refurbishment programme
2 days ago

Construction green light for delayed £135m bypass

Work on the Caernarfon and Bontnewydd bypass to start in November
2 days ago

Plans lodged for over 1,300 Lincoln Uni student rooms

Student complex to kick start £150m St Marks scheme
2 days ago

Fleeing tax cheats grounded over £1m phantom homes scam

HMRC officers catch construction con artists hiding in a Benidorm villa
2 days ago

United Utilities starts £800m network maintenance race

Shortlisted firms to be invited in July to bid for six-year framework
2 days ago

Network Rail renews cost consultant team

Currie and Brown, Motts, Gleeds, Arcadis, T+T and Corderoy win cost planning places
2 days ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
3 weeks ago

KeolisAmey JV wins £5bn Welsh rail franchise

Joint venture will deliver £700m south wales Metro electrification project
3 days ago

Retractable pitch tested at Spurs stadium site

Huge pitch trays and touchline hydraulics in action for the first time
3 days ago

Builders named for £1.5bn Scottish social housing panel

Robertson, ENGIE, Bancon and Hadden take top honours
3 days ago

Bovis Homes fends off shareholder revolt over pay

Shareholders voted 38% against remuneration report at agm
3 days ago

Site safety shambles at care home extension

Residents put at fire risk from timber frame scheme. Main contractor now in liquidation
3 days ago

Wates wins £23m contract with London’s Brent Council

Work to start on Knowles House redevelopment in Harlesden
3 days ago

Speller Metcalfe wins £18m Coventry Uni job

Speller to start next month on former hospital site at Gulson Road
3 days ago

GPE to start trio of projects despite London caution

All three projects located next to Crossrail stations
4 days ago

Government slammed for not spotting Carillion was in trouble

Carillion bosses talked officials out of highest risk rating
4 days ago

Bouygues tipped for £135m Cardiff innovation campus

Cardiff University close to selecting firm after Kier moved on after pre-construction
4 days ago

Dandara plans 340-flat Bristol build to rent project

Bedminster plan includes a podium and tower at St Catherine's Place
4 days ago

Morrison agrees £59m price for East Ayrshire school complex

New Cumnock school complex incorporates three primary schools and two academies
4 days ago

Welsh towers get cash to replace Grenfell style cladding

Trio of Newport resi blocks get £3m of government funding to remove ACM panels
4 days ago

WSP raids CH2M and Atkins for infrastructure hires

WSP boosts local government transport arm
4 days ago

Galliford Try starts £47m Solihull retirement village

Contractor starts eleventh scheme for ExtraCare Charitable Trust
4 days ago

Sisk confirms next £96m office at Manchester Circle Square

Total orders at Manchester city centre scheme reach £240m
4 days ago

Galliford Try expects further hit from Aberdeen Bypass

Bad weather earlier this year drives up finishing costs on delayed Scottish road
5 days ago

Green light for Manchester’s Old Granada studio revamp

Work to start on studio revamp and new hotel in June
5 days ago

Renew counts cost of gas contracting exit

Renew expects the year ahead to show show growth after acquisition of rail contractor QTS
5 days ago

Drones to move construction materials around sites

Future gazer also predicts floating buildings and 3D printing solving the housing crisis
5 days ago

Forterra to boost brick production with new £95m plant

Materials giant to double capacity at Desford site
5 days ago

Watkin Jones has £900m of student schemes in pipeline

Sector still booming as contractor also continues expansion in build to rent market
5 days ago

Contractor services