Results show housebuilder in profit for first time since 2007
Cala Homes’ parent Cala Group has reported a pre-tax profit of £2m in its financial results for the year ending 30 June 2011.
The housebuilder saw its turnover increase by 38% to £215m, up from £172m in 2010. Home sales increased by 45% to 649 compared to 449 the year before.
Forward sales were also strong as of 1 September, with 50% of homes for the new financial year already reserved.
This is the first time Cala Group has returned a profit since 2007, and represents a significant improvement on the £27m loss the business sustained in the year to June 2010.
Much of the company’s financial improvement has been driven by its increasing home sales, combined with a strong recovery in house sales gross margin to 14.8% before exceptional items.
Cala’s landbank stands at just over 3,000 plots with a turnover value of £909m, the equivalent to around 3.5 years output on current projections.
In 2011, the group contracted 20 new sites for future development, mainly detached family housing. This is forecast to deliver over 1,000 new homes and generate revenues exceeding £350m.
The firm’s growth has been mirrored by an increase in on-site employment numbers during the last year. Direct staff numbers across UK sites have increased by more than 20% to 187 compared to 2010. The average number of Cala staff and subcontractors on-site has increased 86% to 1,171.
Chief executive Alan Brown said: “The group has delivered an excellent performance across all aspects of the business in 2011.
“The return to profit is a significant achievement for the company, having been delivered during continued uncertain trading conditions. It reflects the renewed focus of our sales strategy and increased investment in the quality of our product supported by firm cost controls.
“Being ranked as the best housebuilder in the UK [by the HBF] in the two very important areas of customer service and health and safety has also been a major accolade for us, which reinforces Cala’s brand as a premium house-builder.”