Countryside Properties (CSP) floated on the London Stock Exchange in February 2016, and its first-half performance was impressive even by the high returns on offer in the housebuilding sector. Completions rose by nearly a third to 1,437 and the return on capital employed increased from 23.1 per cent in the comparable period last year to 25.7 per cent this time.
In the partnership division, which works with local authorities and housing associations, completions were up by 23 per cent at 987 homes, and adjusted operating profits from this division were up two-thirds to £38.5m. Consequently, completion targets for the year to September 2018 have been upgraded by 10 per cent.
Net reservations for the group as a whole were up, and the number of sales outlets grew from 37 to 48. And with sales continuing to grow in the second half, Countryside believes that overall full-year profits will be ahead of current market expectations. Private average selling prices fell by 13 per cent to £441,000, as a result of fewer sales of the premium Millgate brand and a greater emphasis in the product mix on more affordable units. Even so, private completions were up 42 per cent and the private forward order book was up by more than two-thirds at £347m.
Analysts at Numis are forecasting adjusted pre-tax profits of £152m and EPS of 26.9p for the year to September 2017 (from £111m and 19.6p in 2016).
| COUNTRYSIDE PROPERTIES (CSP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 296.5p | MARKET VALUE: | £1.33bn | |
| TOUCH: | 295.9-296.5p | 12-MONTH HIGH: | 306p | LOW: 171p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 140p | NET DEBT: | 6% | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2016 | 286 | 18.1 | 3.1 | nil |
| 2017 | 351 | 60.3 | 11.1 | 3.4 |
| % change | +23 | +233 | +258 | - |
Ex-div: 1 Jun Payment: 7 Jul | ||||
