Countryside Properties PLC Q1 2018 Trading Statement (8519C)

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RNS Number : 8519C

Countryside Properties PLC

25 January 2018

Countryside Properties PLC

Q1 2018 Trading Statement

Strong first quarter, trading in line with expectations for full year

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 October 2017 to 31 December 2017 in conjunction with holding its Annual General Meeting for the year ended 30 September 2017.

First Quarter Highlights

   --     Total completions up 47% to 852 units (Q1 2017: 581 units) 

-- In line with our strategic objectives, private average selling price ("ASP") down 11% at GBP394,000 with underlying sales price growth of 3% (Q1 2017: GBP443,000)

   --     Net reservation rates(1) at 0.70 (Q1 2017: 0.73) 
   --     Open sales outlets up 7% to 49 (Q1 2017: 46) 
   --     Strong private forward order book of GBP242.9m (Q1 2017: GBP292.9m) 
   --     Net cash of GBP65.1m driven by higher completions (Q1 2017: GBP86.0m net debt) 

(1) Net reservations per active outlet per week

Divisional Performance

The record year-end forward order book has enabled a very strong first quarter, with completions ahead of expectations and accelerated cash delivery. With good visibility of future growth, we expect performance for the full year to be in line with current market expectations.

Our Partnerships division continues to thrive, with 50% growth in completions and strong cash conversion. We have secured an additional 1,128 plots during the quarter and have commenced construction on five new sites in London. Private ASP reduced in line with expectations to GBP319,000 (Q1 2017: GBP361,000) due to the growth in the West Midlands region and mix in the Southern region.

Housebuilding has also performed well, with completions up 39%. We have maintained our strategic led land bank at 20,118 plots. Private ASP was broadly flat at GBP545,000 (Q1 2017: GBP537,000) with the repositioning of the division now largely complete. We anticipate continued outlet growth in the remainder of the year as we convert our active sites to open outlets.

Outlook and current trading

Current trading remains robust, with the net reservation rate tracking in line with expectations and an underlying sales price increase of 3%. We see the strongest demand in the price points below GBP600,000, which represents over 90% of our private sales. Our mixed tenure delivery and an increase in the number of active sites, up 22% to 96, continue to underpin our sector leading growth.

Ian Sutcliffe, Group Chief Executive, commented:

"We have had a strong start to the year. We entered FY 2018 with a record forward order book which, combined with our mixed tenure model, has enabled us to deliver sector leading growth in completions and improved cash conversion. We remain on track to deliver both our short and medium term plans."

   -     Ends - 

Enquiries:

Countryside Properties - 01277 260 000

Ian Sutcliffe - Group Chief Executive

Rebecca Worthington - Group Chief Financial Officer

Victoria Prior - Investor Relations & Strategy Director

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.

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

This information is provided by RNS

The company news service from the London Stock Exchange

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January 25, 2018 02:00 ET (07:00 GMT)