Cala Homes aims to treble turnover by 2016

Aaron Morby 10 years ago

House builder Cala has revealed ambitious plans for a three-fold rise in turnover by 2016, after posting record results for 2014.

The firm, which acquired Banner Homes in March for a reported £200m, said it now ranked among the UK’s top 10 house builders and would seek to expand in the south east of England.

Alan Brown, chief executive of Cala Group, said: “2015 will be the group’s first year of significant volume growth since the implementation of its new growth plans and this delivery is underpinned by a strong development portfolio, well spread across Cala’s eight operating regions.

He said increased development activity would be seen in the East of Scotland and Aberdeen where Cala’s existing landbank is already very strong and through the group’s south east of England operations where there was significant unmet demand for upmarket homes.

Brown added: “We expect cost pressures to remain a challenge to the business in the year ahead and for the availability of supply of skilled tradesman to feature as a growing issue for Cala and the industry as development activity continues to increase.”

During the year to June, the group more than doubled pre-tax profits to £27m from £12.6m the year before.

Completions over the the year remained broadly flat at 677. But a sharp rise in average selling prices from £335,000 to £423,000 helped to lift turnover 22% to £294m.

The big rise in selling price was driven by a change in site mix, sales inflation and Banner’s higher ASP.

Operating margin was also up to 13.6% from 10.2% the year before.

Following the Banner acquisition, Cala is operating from three regional centres in Scotland and five in England.

Turnover in this financial year is expected to top £500m after a full year contribution from Banner.

During the year, the Group acquired land or secured planning permission on 42 sites for 3,256 homes with a £1bn development value, at an average selling price of £318,000

Cala’s owned and contracted landbank rose 27% to 12,690 plots with a potential gross development value of £4.7bn, up 48%.

Net bank debt rose from £40m a year ago to £142m due to the Banner acquisition and greater investment in land to support Cala’s growth plans, resulting in gearing of 45%.

Brown added: “Our growth plans are underpinned by the strength of our landbank, and the quality of our development locations with 81% of the projected profit to be delivered through our business plans in the next four years already owned, contracted or with deal terms agreed.

“We have entered the new financial year in a very positive position thanks to strong forward sales and, with a stable market backdrop, I am very excited about Cala’s prospects for the year ahead which will deliver our  first year of significant volume growth since the implementation of our new growth strategy.”

Latest news

Steel import delays make Rangers miss kick-off

Construction work at Ibrox will not be finished by start of next season
5 hours ago

Clients under spotlight after bond bombshell

Contractors call for action to avoid project delays
14 hours ago

Amey switches kit supplier to Speedy from HSS

New plant and equipment hire deal worth £25m a year
10 hours ago

M&E specialist Lorne Stewart falls into the red

Parent group suffers £2.8m loss in face of cost inflation and insolvencies
13 hours ago

Four men rushed to hospital after site accident

Eye-witnesses report a wall was knocked over on Edinburgh site
23 hours ago

World’s tallest scissor lift set for UK sites

Hire Safe Solutions partners with Dingli to supply lift with working height of 37 metres
13 hours ago

Barhale wins £36m East London sewer remediation

Northern Outfall Sewer in West Ham runs above railway lines in the city
13 hours ago

Weston Homes thumbs-up for £220m Essex homes scheme

Colchester 600-home Viridis scheme gains outline consent
14 hours ago

Balfour seals £192m deal for trio of Scottish substations

Work to start this summer to enhance electrical transmission in Argyll
2 days ago

Construction bond bombshell as major player quits market

QBE currently provides cover for 20 of the industry's 30 biggest contractors
2 days ago

United Utilities names another 18 winners for £2.7bn water spend

Water giant cuts out large management contractors in latest spending round
2 days ago

Green light for £130m Dundee Eden project

Former gasholder site to be transformed into green house
2 days ago

Four tower scheme in Glasgow gets green light

Go-ahead for major mixed-use scheme at Central Quay
2 days ago

‘Green collar’ construction workers earning £134,000

Cost consultant T&T says insulation and heat pump trades earning £70 an hour in London
2 days ago

£65m Trafford Waters resi blocks approved

X1 Developments plans over 200 homes in 13- and 8-storey blocks
2 days ago

Over 100 firms win £1.5bn ICN housing framework

Great Places Housing Group names key partners for new homes programme
3 days ago

Steelwork firm went down owing £4.5m to suppliers

Subcontractors left holding unpaid invoices from SH Structures
3 days ago

Scottish civils firm to buy stake in piling specialist

Advance Construction in talks for 25% stake in Northern Piling Ltd
3 days ago

RSK secures £500m for fresh acquisitions spree

Acquisitive group aims to buy another 200 businesses by 2030
3 days ago

Beal Homes gets green light for £105m Humber scheme

Work to start on more than 500 homes in North East Lincolnshire
3 days ago

RED wins £20m East London office refurb

Grade II listed Victorian building to be upgraded to Cat A offices
3 days ago

Employee-owned Neilcott staff share £250,000 payout

Employee-owned building contractor sales jump 38% to £139m
4 days ago

Geoffrey Osborne supply chain hit for £26m

More than 500 suppliers and subcontractors left holding unpaid bills
6 days ago

Race for £800m South West Wales framework

Up to 16 firms face fight to renew spots on regional contractors framework
4 days ago

SME contractors agree 4% pay rise for site workers

Workers will also get an extra day of holiday
6 days ago

South East expansion paying off for Meldrum Group

Turnover up to £55m as North East based contractor expands national coverage
4 days ago

Wates boosts paternity leave to 12 weeks

Latest leave benefits apply from first day of working for contractor
4 days ago

Taylor Wimpey chief honoured with CBE

Jennie Daly recognised in King's Birthday honours
5 days ago

Labour to mothball £320m A27 job to fix potholes

Manifesto confirms Arundel Bypass canned as "poor value for money"
7 days ago

Lendlease’s £1.9bn Smithfield Birmingham scheme approved

Initial work to start later this year despite questions over Lendlease's degree of involvement
7 days ago

Contractor services