Truss mini-budget interrupts otherwise ‘excellent’ year for Cala

Truss mini-budget interrupts otherwise 'excellent' year for Cala

Cala Group has pointed to the Conservatives’ controversial mini-budget last autumn for disrupting an overall “excellent” year in 2022 for the housebuilder.

The group reported revenue of £1.36 billion, a 9% increase on 2021, and anticipates pre-tax profit of circa £169 million, up 27% year-on-year.

The housebuilder’s preliminary results for the 12 months to 31 December 2022 also revealed total home completions of 3,027 – 4% up on the 2021 total of 2,904 units.

The business recorded an uptick in private average sales price (ASP) to £492,000, up from £462,000 in 2021, as a result of sales price growth and the mix of sites sold during the year, and entered the new financial year with 751 forward private reservations equating to £396m Gross Development Value (GDV), although this was down on the 994 units and £488m GDV in 2021.

Truss mini-budget interrupts otherwise 'excellent' year for Cala

Kevin Whitaker

Kevin Whitaker, CEO at Cala Group, said: “Cala has delivered an excellent performance across 2022, achieving significant increases in revenue and pre-tax profit. This was attained through an increase in new home completions, strong sales price growth and the mix of homes sold during the year.

“We benefited from excellent market conditions in the first nine months of the year. During the final quarter of 2022, the impact of the UK Government’s mini budget on the financial markets directly influenced buyer confidence. This has naturally affected sales rates in recent months and has impacted the strength of our forward sales position. 

“2023 will be challenging for everyone, due to the increased financial pressures associated with higher living costs and mortgage repayments. Cala is well-placed to navigate the changing market conditions with the backing of our owners, Legal & General, alongside the talent, commitment and quality of our teams.

“The fundamental shortage in the supply of new homes continues to support new build delivery. In a more selective market, the quality of design and construction of Cala’s homes, alongside industry-leading customer service, continue to attract home buyers.

“Now more than ever, against the backdrop of increased fuel costs and reduced availability of secondhand homes, new homes offer a great alternative. Excellent energy and thermal efficiency help minimise energy use, while facilitators like part exchange support customers through their move.”

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