Countryside Properties PLC Countryside Properties PLC Q3 2018 Trading Update (8002V)

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RNS Number : 8002V

Countryside Properties PLC

26 July 2018

26 July 2018

Countryside Properties PLC

Q3 2018 Trading Statement

Continued strong growth, in line with expectations

Countryside Properties plc (the "Group"), a leading UK home builder and urban regeneration partner, is today issuing a trading update for the 13-week period from 1 April 2018 to 30 June 2018.

Q3 Operational Highlights

   --     Total completions up 29% to 1,060 units (Q3 2017: 821 units) 

-- Private average selling price ("ASP") down 7% at GBP376,000 as expected with underlying sales price growth of 2% (Q3 2017: GBP404,000)

   --     Net reservation rate(1) up 1% to 0.89 (Q3 2017: 0.88) 
   --     Open sales outlets up 36% to 60 (Q3 2017: 44) 
   --     Private forward order book up 16% to GBP409.0m (Q3 2017: GBP354.0m) 
   --     Net debt of GBP91.9m (Q3 2017: GBP58.5m) 

(1) Net reservations per active outlet per week

Divisional Performance

Our Partnerships division has continued its strong organic growth, enhanced by the acquisition of Westleigh, with total completions up 46% to 823 homes and sales outlets increasing from 19 to 30. We secured a further 3,722 plots in the period including North Leigh, Wigan (1,700 plots), Bromley (615 plots) and Brent (308 plots) taking our plots under control to 29,645 including Westleigh.

Our Housebuilding division performed well during the quarter, with total completions of 237 homes compared to 257 homes in the prior year. With a strong forward order book and increasing sales outlets, up 20% to 30, our Housebuilding business remains on track to deliver our growth targets. Additionally, we continue to see the benefits of increased scale and operational efficiency improving returns.

Outlook

We continue to see robust demand for our homes across both divisions, evidenced by the strong forward order book and we remain on track to deliver expectations for FY2018. As outlined at our Capital Markets Event on 27 June 2018, we continue to see opportunities for growth in both divisions over the medium term with a target of 10%-15%+ growth in completions, 17%+ operating margin and 35%+ ROCE at the Group level.

Ian Sutcliffe, Group Chief Executive, commented:

"We are delighted with the continuation of our strong growth in both completions and forward order book. This together with the integration of Westleigh, which is firmly underway, positions us well for the year end and beyond. We remain focused on mixed tenure sites to deliver strong growth, high returns on capital and long-term resilience."

   -     Ends - 

Enquiries:

Countryside Properties - 01277 260 000

Ian Sutcliffe - Group Chief Executive

Rebecca Worthington - Group Chief Financial Officer

Mike Scott - Group Financial Controller

Brunswick Group LLP - 020 7404 5959

Nina Coad

Oliver Sherwood

About Countryside

Countryside is a leading UK home builder specialising in place making and urban regeneration. For the year ended 30 September 2017, we completed 3,389 homes with revenues of GBP1,028.8m.

Our business is focused on place making, which we deliver through our two divisions, Housebuilding and Partnerships. The Housebuilding division, operating under Countryside and Millgate brands, develops sites that provide private and affordable housing, on land owned or controlled by the Group. Our Partnerships division specialises in urban regeneration of public sector land, delivering private and affordable homes by partnering with local authorities and housing associations.

Countryside was founded in 1958. It operates in locations across London, the South East, the North West of England and the West Midlands. In April 2018, Countryside expanded its operations in the Midlands and Yorkshire with the acquisition of the Westleigh Group which delivered 1,159 homes, of which 92% were affordable, for the year ended 31 March 2018.

For further information, visit www.countryside-properties.com.

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July 26, 2018 02:02 ET (06:02 GMT)