Cala eyes record profits amid call for more family homes

Upmarket housebuilder Cala today called on the UK government to help deliver more family homes as it predicted another year of record profits.
Cala said the need for family homes was 'critical'. Picture: ContributedCala said the need for family homes was 'critical'. Picture: Contributed
Cala said the need for family homes was 'critical'. Picture: Contributed

The Edinburgh-based group, has set itself the target of growing sales to £1 billion within the next five years, said market conditions remained “positive” as it reported “strong” sales for the early weeks of 2016.

In a trading update covering the eight months to the end of February, the builder said it was now 83 per cent sold for the current year and has started forward selling for 2017.

Hide Ad
Hide Ad

Chief executive Alan Brown said: “While market conditions remain positive and government measures to support the housebuilding industry have undoubtedly had a positive impact at the lower end of the housing ladder, we continue to believe that the most effective way to resolve the overall housing undersupply is to increase production further up the chain.

“Although support for affordable housing and first-time buyers is clearly important, the requirement for greater numbers of four- and five-bed family homes is arguably even more critical when it comes to addressing the real housing needs of growing families across the country.”

Brown added: “Our focus remains on scaling up our divisions to increase the number of homes we build and, with the infrastructure in place to deliver an annual capacity of up to 2,500 units, we feel we are well placed to play our part in delivering the family homes that the UK desperately needs.”

In September, Cala reported a 79 per cent jump in revenues to £511.6 million for the year to June, helping pre-tax profits almost double to £50.9m, compared with £26.8m a year earlier.

Read More
Cala targets £1bn revenues after record results

The firm was acquired by insurer Legal & General and private equity firm Patron Capital in a £210m deal in March 2013.

Brown said: “Following a strong end to 2015, we have continued our positive trading performance into 2016 and remain on course to deliver another record year of revenues and profits for the group.”

In December, Cala was granted planning permission for the redevelopment of Edinburgh’s historic Donaldson’s School. Under the plans, the firm’s Evans division will create a range of homes in the grounds of the William Playfair-designed building, which is to be converted by partner City & Country.

The permission allows for 115 new properties sited within the Playfair building, along with 84 newly-built homes designed in a crescent shape to the rear. The sweeping South Lawn that faces Wester Coates will be retained as an open area.

Hide Ad
Hide Ad

Designed by city architect William Playfair and completed in 1851, Donaldson’s first use was a hospital for orphans, before turning into a specialist school for deaf children. The school relocated to Linlithgow in 2008.

Related topics: