Scottish premium housebuilder Cala has said the east of Scotland property market was key as it laid the foundations for doubling the size of the business by 2017.
The Edinburgh-headquartered firm said it intended to significantly increase development activity over coming years as its new owners look to build on gathering momentum in the housing market.
The company posted accounts for the year to June 30, showing revenues down 5% from £253.7 million to £240.8m.
However, pre-tax profits in the period climbed by 37% from £9.1m to £12.5m and group net debt plunged by almost two-thirds from £117.4m to £41.1m.
The company entered a new era in March after being acquired by Patron and Legal & General in a deal that also saw Cala’s existing senior management team take a 7% holding. The transaction comprised £145.7m of equity and £68.5m of debt and put a value on the housebuilder of £214.2m.
Cala yesterday said it was targeting a doubling in size of the business within four years as it looked to expand its presence in affluent Scottish cities such as Edinburgh and Aberdeen and increase its portfolio in the south of England marketplace.
The company also has plans for 850 plots near Kirkcaldy part of a wider proposed housing development in the area and has designs on Dunfermline, Cupar and St Andrews.
“With the backing of new and supportive partners in Patron and Legal & General, Cala now has greater balance sheet capacity, putting the group in a strong position from which to continue the positive momentum generated in recent years and grow the business further,” the company said.
“This will be achieved through significantly increasing development activity in the east of Scotland and Aberdeen, where Cala’s landbank is already very strong, while accelerating the development of land bought during the downturn and continuing to buy land in the most desirable locations.
“In addition, Cala plans to grow the number of regional businesses it operates in the south-east of England in order to further expand the group’s presence in the more affluent areas where there is unmet demand for high-quality homes.
“This anticipated growth of the business will require further increases in staffing levels, which will be developed in a gradual and controlled manner in line with the group’s growth plans.”
In total, Cala completed 850 homes during the year to June a slight reduction from the 875 achieved last year with the number of affordable properties completed by the group dropping from 209 to 156.
Of its output, 694 were private homes on which Cala saw a slight drop in average sale price from £340,000 in 2012 to £335,000.
However, total house sale gross margin increased from 16.4% in 2012 to 18.8% in the year.
The firm has 25 active developments, including one at Auchterarder in Perthshire, and has a total available landbank of more than 10,000 plots which collectively have a gross development value of £3.16 billion.
Group chief executive Alan Brown said Cala had delivered an “excellent performance” during the year and he was “very excited” by the company’s future prospects.
“This was achieved while going through a complex acquisition process which resulted in Cala securing the support of two blue-chip financial backers that will enable us to realise our growth ambitions.
“The investment has already begun to bear fruit, and we are now able to develop land within our existing landbank at a faster rate while simultaneously seeking to acquire additional plots in high-growth areas such as the east of Scotland and the south of England.
“This in turn is allowing us to take on more staff and open more sites.”