A healthy rise in sales volumes meant Countryside Properties' (CSP) adjusted operating profits pushed ahead by 11 per cent in its financial year to September, despite an increase in the proportion of margin-eroding partnership work.
Completions from the housebuilder’s partnership division rose by almost half, boosted by last year’s acquisition of Westleigh and the group’s shift in focus to regions outside London, where house price inflation has been weak. The decision to appoint Iain McPherson – head of Countryside's partnerships division in the south – to take over from Ian Sutcliffe when the chief executive steps down in March demonstrates the importance being placed on the division, in a precarious market for housebuilders.
One effect of this geographical shift is pressure on private sales prices, which declined by 9 per cent on average to £367,000 in the period. Still, the net private reservation rate held up well at 0.84, from 0.80 the prior year.
Analysts at Peel Hunt forecast adjusted pre-tax profits of £223m and EPS of 42.4p for the year to September 2020, rising to £243m and 42.4p the following year.
| COUNTRYSIDE PROPERTIES (CSP) | ||||
| ORD PRICE: | 372p | MARKET VALUE: | £1.67bn | |
| TOUCH: | 372-373p | 12-MONTH HIGH: | 377p | LOW: 274p |
| DIVIDEND YIELD: | 4.4% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 200p | NET CASH: | £73m | |
| Year to 30 Sep | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 (Pre-IPO) | 0.55 | 28 | 4.4 | nil |
| 2016 | 0.67 | 79 | 13.6 | 3.4 |
| 2017 | 0.85 | 148 | 27.2 | 8.4 |
| 2018 | 1.02 | 181 | 33.1 | 10.8 |
| 2019 | 1.24 | 204 | 37.7 | 16.3 |
| % change | +21 | +13 | +14 | +51 |
| Ex-div: | 19 Dec | |||
| Payment: | 7 Feb |
