Owner L&G looking for bids around £750m
Housebuilder Cala Group has reported a fall in profit and turnover during the twelve months to 31 December 2023, with pre-tax profit falling by -33.6% to £112m against 2022’s £169m achievement. Turnover also dropped by -7.3% to £1.26bn.
The news comes amidst rumours that owner Legal & General are looking to sell the group, lining up bankers at Rothschild to oversee the sale, valued up to £750m.
Meanwhile, developer Bellway has also published interim results to 31 January 2024, reporting a -57% slump in pre-tax profit against H1 2023 to £134m, and revenue decreasing by -29.6% to £1.27bn.
However, the firm reported “encouraging” recent trading, with Group Chief Executive Jason Honeyman reporting “a resilient performance in a period of challenging trading conditions.”
Keepmoat’s revenue rose by 11% during its year to 31 October 2023, reaching £865m from the previous year’s £778m.
The housebuilder also delivered 4,074 new homes – an increase of 7.9% on 2022.
DLUHC figures show completions stable, but fall in starts
Figures from the Department for Levelling Up, Housing and Communities have revealed that there were 39,650 seasonally adjusted completions in the final quarter of 2023; almost exactly the 39,570 and 39,680 completions in the previous two quarters.
However, following a rush to beat Part L regulations in Q2 2023, housing starts fell in the final two quarters of the year.
Completions have remained broadly stable since Q3 2020, following a significant drop due to the first Covid lockdown.
Meanwhile, labour rates on construction sites in February rose to £1,017 per week, suggesting a return to form for the industry following a wet January, in which wages dipped.
Figures from payroll provider Hudson Contract also reveal that average earnings in February were 2.3% higher than the same period in 2023.
It’s definitely been a tough time for the new-build housing sector and it’s very early days but it feels like things could be turning round after a downturn caused by inflation and high interest rates.
Ian Anfield, Managing Director, Hudson Contract
Rowley requests more time for MMC report response
Housing Minister Lee Rowley has asked for more time to respond to a House of Lords report into modern methods of construction (MMC), which stated that the Government’s efforts to promote it were “in disarray”.
The House of Lords committee inquiry began following the closure of several modular housebuilding firms such as House by Urban Splash and Ilke Homes.
As reported in Housing Today, Rowley welcomed the report as “extremely helpful” but said he would “like to give further detailed consideration to the development of MMC policy and how best this Department can support the sector.”
Committee chair Lord Moylan has granted an extension but has requested a response before 24 May, ahead of the Whitsun Recess.
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