Countryside Properties has this morning released half year results for the six months ending 31 March 2016. The shares rose by around 2% in early morning trading.
Completions rose by 15% to 1,095. This included 803 completions in the Partnerships business, up 12%, and 292 (+25%) in Housebuilding. The sharper increase in Housebuilding and a rise in premium housing sales saw the private average selling price increase by 46% to £505,000.
Adjusted revenue rose 24% to £312.8m. Adjusted operating profit increased by 44% to £50.8m with margins up 220 basis points (bps) to 16.2%.
Return on capital employed came in 660 bps higher at 23.1%. Net debt fell to £8.7m (HY 2015: £135.9m), with the IPO in February raising £114m.
Medium-term targets are for 3,600 completions, 17% adjusted operating margin and 28% return on capital employed by 2018. Countryside has adopted a dividend policy of paying out 30% of earnings, with the first payment scheduled for February 2017.
David Howell, Chairman, said "We are delivering on what we set out at IPO in February 2016 and are particularly encouraged by the new wins within the Partnerships division and continued strong demand for our new homes. We are well placed to deliver 2016 full year expectations across all areas of the Group."
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