Retirement house builder targets 3,000 units as revenues rise by a third

Legal completions carried out in H1 were up 19% to 923 with the net average selling price up 12% to £253,000.

Following the group’s successful IPO (initial public offering) in November, chief executive officer Clive Fenton said it is on course to deliver 3,000 units each year by 2019.

“The UK’s population is maturing at a fast rate, but continues to suffer from a chronic under supply of suitable retirement properties of the type we provide”, said Fenton.

“The group’s operating performance during the period has seen significant growth in reservations, legal completions, revenue and profitability and we are carrying a strong order book into the second half, with reservations at attractive margins well ahead of last year.”

As of 15 April, that order book was up 26% on last year, to £306m.

According to the results, group development has quickened the time from land exchange to build start, focusing particularly on accelerating the planning process.

The 15 developments started in H1 took on average 19.7 months from land exchange to build start, compared with an average of 23 months across standard build starts in H1 2015.

“Our land bank now includes sufficient land with full planning consent to deliver all targeted sales to 2017, and sufficient land under control to deliver all targeted sales to 2019,” said Fenton.

“In the first half, we have put in place the regional infrastructure and management capability necessary to help deliver these sales, which gives us confidence in the progress we are making in achieving our strategic objective of building and selling more than 3,000 units per annum.”