contents
Group Profile Corporate Highlights Chairman’s Statement Chief Executive’s Report Operating and Financial Review Corporate Social Responsibility 2011 Accounts Board of Directors 4 6 10 14 16 23 26 37
TRINITY
PARK,
TRINITY,
EDINBURGH
Group Profile principal activities and strategy
Headquartered in Edinburgh, CALA Group is a leading provider of high quality homes in Scotland, the Midlands and the South East of England. The Group’s sole activity is the development of new homes predominantly at the premium end of the UK market. During the year our operating region in the Midlands relocated its head office to Henley-in-Arden in order to refocus the majority of future development to the south of its area of operation.
cala homes
The core strategy for CALA Homes has remained unchanged during the year and is centred on the strength and value generation of our landbank. Our key aim is to build a pipeline of contracted land, including sufficient sites with planning permission, that will provide a high level of certainty over the delivery of our business plan. The focus for our land teams is on contracting housing sites in high quality locations for development in the medium/longer term and delivery of our promising strategic land portfolio. At the same time we believe that our continued emphasis on delivering excellent service and a quality product to our customers is an important differentiator in competing for sales in these uncertain market conditions and delivering value for shareholders.
Commercial Property
The managed run-off of the Group’s commercial property interests is progressing well. A number of properties have been sold during the financial year and all remaining assets either have solicitors instructed to complete their disposal or are at an advanced stage in the sales process. It is currently our expectation that the Group’s exit from commercial property will be completed during the new financial year.
4
ICKENHA M
PARK,
ICKENHA M,
MIDDLESEX
5
corporate highlights
FINANCIAL
Turnover* Profit/(loss)** Profit/(loss) before tax Average sales price* House sales gross margin* Net debt Net assets
* Including joint ventures ** Before interest, tax, goodwill, amortisation and exceptional items
2011 £215.4 million £15.6 million £2.0 million £328,000 14.8% £116.1 million £32.1 million
2010 £172.2 million (£3.9 million) (£27.1 million) £272,000 9.0% £122.8 million £28.0 million
6
THE
MOORING,
RATHO,
EDINBURGH
7
corporate highlights
OPERATIONAL
Homes sales* Consented landbank (turnover)* Contracted landbank (turnover)* Overall customer satisfaction score~ Forward sales* Average weekly reservations* Average weekly reservations per active site* Annual injury incident rate per 100,000 employees^
* Including joint ventures ~12 months ended 30 June 2010 and 12 months ended 31 March 2011 ^12 months ended 31 March
CHAIRMAN’S STATEMENT
I am delighted to present my first report as Chairman of CALA Group. The Group has delivered an excellent performance in many aspects of the business during 2011. These results reflect the focus of our sales strategy, our firm cost control and the commitment and energy of our hard working teams across the company. I am particularly pleased that for the year ended 30 June 2011, the Group has returned to profit delivering a profit before tax of £2.0 million, after exceptional items. This has been achieved despite the uncertain market conditions that continue to prevail and is an excellent turnaround compared with the loss before tax of £27.1 million reported last year. The significant improvement in our
