Cala Group reports soaring profits.
Cala Group house builders have announced announced a near-doubling of pre-tax profits to a record £50.9million for the year to June 30, the group who target the relatively affluent areas of the UK saw revenue soar by 79% to £511.6million, the company reaped the rewards of the first full year of a new strategy to achieve economies of scale across its eight regional businesses.
Edinburgh based Cala Group reported 993 completions, that is up just over a third from a year ago, the firm sees potential based on current market conditions to build up to 2,500 homes annually and is targeting revenue of £1billion within five years, Cala is still building more new homes in and around Aberdeen despite the oil and gas downturn.
Chief executiveof Cala Group Alan Brown reportedly said “prices in the energy capital of Europe had stabilised over the past year but there was still no sign of a let-up in strong housing demand”.
Cala said a structural demand and supply imbalance in the UK housing market remained acute despite more new homes being built and an increase in the number of planning permissions, they highlighted employment growth, good mortgage access and record low mortgage rates as key factors driving an increase in sales, the company added it had started the new financial year with a solid forward sales position.