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Countryside Properties' reservation rate slowed in December

Published: 08:37 24 Jan 2019 GMT

An upmarket house
Private average selling prices were broadly flat at £395,000

Countryside Properties PLC (LON:CSP), the home builder and urban regeneration partner, traded in line with expectations in the final quarter of 2018.

Total completions rose to 1,094 homes in the period from 852 homes in the final three months of the year before, with lower private completions being replaced with strong growth in the private rented sector and affordable housing.

READ: Countryside Properties weak as JPMorgan cuts to ‘underweight’ on valuation grounds in upbeat housebuilders review

Private average selling prices (ASPs) were broadly flat at £395,000 (2018: £394,000) with a 1% to 2% underlying increase in prices.

The forward order book increased by 78% to £946mln from £532mln the year before but the net ‘private for sale’ reservation rate slowed in December, as a consequence of which the rate for the quarter fell to 0.63, compared to 0.70 from a year earlier.

The adjusted operating margin was not disclosed but was said to be in line with expectations.

Having ended the previous year with net cash of £65mln, the company ended 2018 with net debt of £12mln but this was better than the company had been expecting.

"Our balanced business model continues to give us sector-leading growth and greater resilience from our mixed tenure delivery. We have a record forward order book and continue to win new business in our Partnerships division, giving us visibility of future earnings and continued growth potential,” declared Ian Sutcliffe, the chief executive of Countryside.

Liberum Capital Markets said the trading update did not provide much of a “read across” for the rest of the housing sector “as Countryside's private business is quite upmarket (ASP [average selling price] £395k), but you may see a little profit taking in the sector after the strong run”.

Shares in Countryside were down 1% at 323.8p in early deals.

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