Cala forecast record profits

Cala Homes has forecast a record year of profits and revenues despite the average selling price of its homes falling.

CalaHomes

Cala, the UK’s largest private housebuilder, said reservations were up 24% in the second half of 2016, compared to the same period last year.

Alan Brown, chief executive of Cala Homes, said the measures in the White Paper to increase planning fees were welcome. He said the government delivered on 75% of what is needed.

He said: “It sounds like the government is listening to the industry and wants to work with it to solve the problems”.

Despite the average selling price for one of its properties being at £504,000 compared with £529,000 the previous year, the profits were still high. But Cala boosted the rate of sales per week, selling more of slightly less expensive homes.

Brown said this was a conscious decision to build fewer homes worth more than £1m, with the results being “really positive.”

Cala said it was on track to produce a turnover of £1bn per year and build 2,500 homes annually over four years.

Brown said the company has “significant momentum, the market is going well and we are delivering on targets”.

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