Cala Homes expects to receive further investment from its joint owners as it heads towards its goal of more than doubling the size of the business over three years.
Patron Capital and Legal & General, who bought the company last year for £210 million, have committed to increasing their equity in the business on the back of solid growth in the past half year.
The company has amassed an added landbank with a fully- developed value of £681m against a turnover last year of £250m, giving some indication of the scope for expansion. The total landbank is worth £3.6 billion.
After a long downturn, Alan Brown, the firm’s chief executive, said there were tangible signs of improvement in the market during 2013 which has continued into this year.
The company will be recruiting 200 full-time staff, excluding the extra workers hired on sites. It has launched two divisions in the south as it continues its push into the higher-end English market.
“After delivering record profits for Cala Homes during 2013, we are now investing significantly in new staff and top quality sites in desirable locations, in order to expand our regional footprint and firmly establish the Cala brand in new, high growth markets,” said Brown.
“With a strengthened housing market and improving consumer confidence, our strategy during the first half of 2014 will be focused on increasing market share within the south east of England where demand for new homes is at its greatest.
“With the financial firepower that our new, blue-chip investors afford us, we are now able to develop land within our landbank at a faster rate than ever before while identifying and securing the very best sites available in the south-east.”
He said there was good growth in Scotland and the Midlands. Between July and the end of January 2014, the average selling price for private reservations rose by 4.9 per cent to £361,000.
“It has been a tough four years and it is great to see the business going from strength to strength,” said Brown.