Countryside upbeat for current year, despite uncertain outlook

Countryside Properties insisted it was well positioned for current financial year on Thursday, despite the uncertain economic outlook.

Updating on trading, the FTSE 250 homebuilder said adjusted operating profit for the year to 30 September was likely to be around £54m, in line with management expectations.

Total completions were 4,053 in 2020, down on the 5,733 recorded a year previously; of those, 1,454 were private, 1,691 were affordable, and 908 were in the private rented sector. The private average selling price was £364,000, £3,000 down from 2019’s figure.

The total forward order book was up 17%, however, at £1.4bn, while net cash was ahead at £98.2m, compared to £73.4m a year previously. Overall, the landbank stood slightly higher at 25,042 plots as at 30 September.

The group conceded that the pandemic – which closed building sites and temporarily halted the UK property market – had caused “significant disruption” to the business. But it added that demand had remained strong for all tenures of housing, and that its sites were now operating at around 95% of their normal delivery level.

Looking ahead, Countryside said: “While the broader economic outlook remains uncertain, we are well positioned for the current financial year with a strong forward order book.”

Iain McPherson, chief executive, added: “We have been pleased by robust customer demand throughout the second half, and our mixed-model tenure continues to prove resilient, positioning us well in the current market.”

Peel Hunt, which has a ‘buy’ recommendation on the stock and a target price of 380p, said there were “few surprises” in the pre-close statement.

As at 1145 BST, shares in Countryside were off 5% at 329p.