Countryside Properties Q3 results in line with FY19 expectations

Countryside Properties Q3 results in line with FY19 expectations

British housebuilding and urban redevelopment company Countryside Properties PLC saw steady performance with mixed results for the Company’s third quarter.

The number of completions was flat on a year-on-year basis at 1,055 homes for Q3 2019, compared to 1,060 for Q3 2018. Private average selling price also plateaued at £374,000 for Q3; at £376,000 for the same period last year.

Regarding deterioration, sales outlets dropped by 4 on-year, to 56, and net debt widened (in line with expectations), from £91.9 million to £128.2 million on-year.

In terms of improvement, net reservation rates were up 12% from 0.89 to 1.00 between Q3 2018 and 2019. Total forward order book was also up 17% from £967 million to £1,135 million for the same period.

Countryside Properties said performance remained in line with expectations.

Countryside Properties comments

Ian Sutcliffe, Group Chief Executive, commented,

“We have maintained our growth trajectory, while continuing to improve build quality and customer satisfaction. The business is performing well and we are laying the foundations for future growth. We have continued to invest, with the increased production from our modular panel factory in Warrington now being realised. We continue to secure new business opportunities across both divisions.  The demand for housing of all tenures remains unfulfilled and we are encouraged by positive sales rate trends despite the ongoing political uncertainty.”

Looking forwards, the Company’s statement read,

“We continue to see strong customer demand across both divisions for all tenures of homes. As previously referenced, we have a significant delivery programme in the fourth quarter due to the phasing of construction. However, we are fully reserved for private sales for the full year and fully sold for both PRS and Affordable homes. With build programmes on track, our focus now continues to be one of converting our private for sale reservations into completions in the fourth quarter. We are active on a total of 135 sites (Q3 2018: 122 sites) and remain on track to deliver full year expectations.”

Investor notes

Following the update, the Company’s shares rallied healthily before stabilising, now up 0.33% or 1.00p to 299.60p a share 25/07/19 12:18 BST. Peel Hunt reiterates its ‘Buy’ stance on Countryside properties stock.

Elsewhere in property development and estate agency news, there have been updates from; Ashley House Plc (LON: ASH), Persimmon plc (LON: PSN), McKay Securities plc (LON: MCKS) and MJ Gleeson PLC (LON: GLE).