Cala Group has reported revenue of £1.36bn, a 9% increase on 2021, and anticipates pre-tax profit of circa £169m, up 27% year-on-year.
The house builder's preliminary results for the 12 months to 31 December 2022 also revealed total home completions of 3,027 – 4% up on the 2021 total of 2,904 units.
Sales per site per week across the year were 0.62, compared to 0.76 achieved in 2021, as a result of a change in sales rates in the final quarter of 2022, following the UK Government’s mini budget.
The business recorded an uptick in private average sales price to £492,000 - up from £462,000 in 2021 - due to sales price growth and the mix of sites sold during the year.
Cala entered the new financial year with 751 forward private reservations, equating to £396m Gross Development Value (GDV), although this was down on the 994 units and £488m GDV in 2021.
Chief executive Kevin Whitaker said: “We benefited from excellent market conditions in the first nine months of the year, but then during the final quarter of 2022, the impact of the mini budget on the financial markets directly influenced buyer confidence and has impacted the strength of our forward sales position.
“2023 will be challenging for everyone, due to the increased financial pressures associated with higher living costs and mortgage repayments.
“The fundamental shortage in the supply of new homes continues to support new build delivery,“ he continued, explaining: “In a more selective market, the quality of design and construction of Cala’s homes, alongside customer service, continue to attract home buyers.”
The land market has been highly competitive throughout 2022 and Cala has taken a selective approach, focusing on high-quality developments in desirable locations.
During the 12-month period, Cala contracted 22 new short-term developments, expected to deliver 3,270 homes with an anticipated GDV of £1.3bn. The business stated that it will continue to grow its land bank throughout 2023.
Cala also reported 'steady progress' towards achieving its targets of building homes for its customers that are operationally net zero carbon enabled from 2030 and reaching net zero greenhouse gas emissions in line with the Scottish Government’s 2045 target and ahead of UK Government’s 2050 target.
The financial update also noted: ”The market in 2023 will be challenging given increases in mortgage rates, alongside the increased cost of living for all.
”The fundamental shortage in the supply of new homes continues to support new homes delivery and strong levels of interest continue through Cala’s website.”
Cala started as the City of Aberdeen Land Association in 1875 and was the first Scottish company listed on the London Stock Market. Today, the group is a subsidiary of Legal & General and employs more than 1,300 people across 10 offices.
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
