Affordable and build to rent homes lift Countryside

Aaron Morby 3 years ago
Share

House builder Countryside lifted completions by 43% to 2,362 homes in the first half of the year, after strong growth in affordable and build to rent homes.

Sutcliffe says geographic expansion following the integration of Westleigh provides Countryside with a strong platform for future growth
Sutcliffe says geographic expansion following the integration of Westleigh provides Countryside with a strong platform for future growth

Growth in total completions was driven by a 146% increase in affordable completions to 806 homes, largely as a result of the Westleigh business acquisition last year. 

But even excluding Westleigh, Countryside enjoyed organic growth in completions of 12%. 

In addition, private rental homes were up two-thirds to 594 homes, driven by a framework agreement to deliver 5,000 homes over three years for Sigma Capital Group.

This helped to drive adjusted operating profit in the first half up by 11% to almost £90m on revenue up by a fifth to £564m.

Private completions remained flat at 489 homes.

Ian Sutcliffe, chief executive, said: “We have delivered excellent growth in the first six months of the year and have continued positive momentum into the second half.

“We see strong demand for our high-quality homes and have underpinned margins with operational efficiency and the opening of our modular panel factory. We remain confident of delivering full year and medium-term expectations.”

In the first half of the year, private average selling price slipped 4% to £377,000, driven by an increase in the regional businesses in the North and Midlands where average selling prices were lower.

Sutcliffe said that underlying house price inflation was broadly flat in the half year, while annual build cost inflation was running at around 3%-4%.

He added: “While we have seen increases on both materials and labour, a greater use of standard house types and operational efficiency on site is enabling us to manage these pressures.”

He said that Countryside’s modular timber panel factory in Warrington was now fully operational with around 500 units expected to be delivered in the current financial year.

The factory will service Countryside’s northern regions with a total capacity of 1,500 units in FY 2020, helping improve build speed and to secure our supply chain for the longer-term.

Latest news

Keltbray bags brace of energy infrastructure wins

Civils work on huge converter stations worth £30m to specialist
51 mins ago

Safety blitz on “aches, pains and strains” on site

1,000 site visits planned in coming months to check how workers are moving heavy or bulky materials
38 mins ago

Balfour Beatty sole winner for £4bn Scape civils deals

Contractor reappointed to England, Wales and Northern Ireland and separate Scottish deals
6 hours ago

PR expert Baroness Rock to chair Costain

Kate Rock will take up senior board role at the end of the year
5 hours ago

Billington profit upgrade after strong first-half

Steelwork contractor says weaker pound will allow it to reignite its old export markets in Europe
6 hours ago

Green light for £120m Liverpool “super restaurant”

Historic Pumphouse at Stanley Dock to be transformed
1 day ago

Tolent bags £15m Sunderland skills academy

Work to start later this year on Housing Innovation and Construction Skills Academy
7 hours ago

Government launches net zero review

Pro-growth and pro-business review of net zero 2050 target launches
1 day ago

L&G Modular wins 400-home Wolverhampton job

Modular specialist wins 17-acre Canalside South regeneration scheme
1 day ago

£1.2bn A12 upgrade accepted for planning

15-mile Essex road upgrade between Chelmsford and Colchester aims for 2023/24 start
1 day ago

US consultant trumps WSP bid for RPS Group

Tetra Tech swoops but WSP could come back with new offer if bidding war breaks out
1 day ago

Sisk hands staff £900 cost of living cash boost

Firm also promises staff £400 Christmas voucher in November
1 day ago

Loathed IR35 reforms scrapped by Chancellor

Contractors will no longer have to determine tax status of freelance workers
4 days ago

Higgins signs deal for 740 West London homes

Work to start this autumn on two Hayes housing estate rebuilds
1 day ago

Kier wins Sefton net zero £36m school job

Deyes High School in Maghull will consist of 60 classrooms
1 day ago

Giant TBM cutterhead takes road trip to second drive

Balfour Beatty Vinci to drag remaining TBM back through tunnel for second bore
4 days ago

Fast-track 138-project growth plan – full list

Chancellor banks on road projects to lead growth plan recover
4 days ago

Kwarteng backs construction to lead “new era for Britain”

Planning rules to be ripped-up to speed infrastructure work as 38 new Investment Zones created
5 days ago

Green light for next two Manchester NOMA jobs

Work to start early next year on first of two major office buildings
4 days ago

Bouygues struggles to raise profitability

Loss-making contracts dent pre-tax profit at £835,000 from revenue up at £484m
4 days ago

Architect helps staff with £1,000 cost of living cash

P+HS Architects to make one-off payments this autumn
4 days ago

Sisk wins £69m rerouting of landslip-prone A59

Site clearance to start next month at Kex Gill in Yorkshire
5 days ago

Renewal race starts for £800m NEPO framework

Nearly 20 firms face fight to renew places on north east construction panel
4 days ago

Avonside supply chain left holding £17m in unpaid bills

Former bosses revealed as buyers of branches from administrators
5 days ago

Hexagonal tower plan for Manchester city centre site

Site will feature a 45 storey resi tower and 350,000 sq ft stepped office block
5 days ago

Keltbray staff get £1,000 cost of living payment

Contractor also plans annual pay rise of 5% for majority of employees
5 days ago

Eric Wright rebounds as profit nearly trebles

Second year of revenue fall brings profit reward
5 days ago

RSK buys Welsh contractor Spencer Group

RSK revenue forecast to hit £800m after busy year of acquisitions
5 days ago

National Highways director to lead Balfour civils business

Peter Mumford appointed Managing Director of UK Construction Regional Civils
6 days ago

Plan detailed for business energy price cap

Gas and electricity price cap comes into force from October
6 days ago

Contractor services