Countryside Properties operating profit, completions up amid strong demand

Housebuilder and regeneration partner Countryside Properties posted a rise in annual operating profit on Wednesday as revenue and completions grew amid strong demand.

In the year to the end of September, adjusted operating profit was up 34% to £164.1m on revenue of £1.03bn, up 32% from the year before. Meanwhile, completions increased by 28% to 3,389 and the company hiked its dividend per share to 8.4p from 3.4p.

Countryside had a net reservation rate of 0.84 versus 0.78 in 2016, from 47 sales outlets versus 43. The private average selling price was down 8%, in line with the group's strategic objectives, to £430,000, with underlying house price inflation of 5%.

In the Partnerships business, completions rose 17% to 2,192 homes, with adjusted operating profit up 40% to £79.4m. Meanwhile, the Housebuilding unit saw completions rise 53% to 1,197 homes, with adjusted operating profit 34% higher at £91.5m.

The company said current trading remains robust, with strong demand from owner occupiers. It added that the Partnerships division's ongoing growth leaves it well placed to benefit from the expanding opportunity for estate regeneration both in the outer boroughs of London and the regions.

"With strong political support for more housing across all forms of ownership and moderate build cost inflation, we look forward with confidence to delivering our growth plans in 2018 and the medium term."