Countryside has reported a 42% surge in revenue, rising to £755m driven by an uptick in its housebuilding business.
The housebuilding business delivered revenue of £334.4m in the six months to the end of March, with a further £420.6m from the partnerships business, which rose 22% year-on-year.
Countryside reported an adjusted operating profit of £78.6m, against £55.3m a year earlier. Its pre-tax profit fell 11.2% to £38.8m. This was caused by a £25m bill for fire safety remediation.
Countryside has struggled with recent activist investor pressure, calling for sweeping changes and a break-up of the business to focus on partnerships.
During the period, the housebuilder invested £109m into partnerships and established three new operating regions in the Chilterns, South West and South London.
Countryside’s adjusted operating margin was steady at 10.4%. However, its return on capital employed dived to 8.9%, due to performance in the second half of 2020.
Over the next three years it aims to boost its operating margin, with a ROCE of 40% in the medium term.
Iain McPherson, group chief executive, said: “We have seen a good recovery from 2020, with trading in line for the full year. We remain focused on executing our growth plans in partnerships, with investment into three new operating regions and a strong bid pipeline, in line with our longer term plans.”
To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or EGPropertyNews
