L&G-backed homebuilder on track for £ 1.8bn revenue

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Cala Homes exceeded its pre-pandemic performance in 2021 and is expected to generate £ 1.8bn per year by 2026, the company said.

Unaudited results for the year ended December 31, 2021 showed the company, which is owned by Legal & General, achieved pre-tax profit of around £ 130m on revenue of 1.25 billion pounds sterling. The company reported a profit of £ 96million in 2019, which plunged to £ 24.4million in 2020 when the market was severely affected by the pandemic.

General Manager Kevin Whitaker said the desire for space that emerged during the pandemic helped drive sales last year: “Several factors contributed to our excellent financial performance during the 12 month period. In particular, we have seen many people making positive new home choices to seek larger living spaces, which has resulted in very high demand for our homes in ambitious suburban areas. “

Cala sales increased 19% from 2019, with 2,449 homes sold.

Whitaker said the company was hit by a supply chain disruption in 2021 and cost increases. House price inflation rising faster than costs, combined with improved efficiency, helped offset the increases.

The company aims to build 3,200 homes in 2022 and is on track to reach £ 1.8 billion in revenue by 2026, Whitaker added.

L&G took full control of Cala in 2018 when it acquired an exceptional 52.1% stake for £ 315 million. She first invested in the Staines homebuilder in 2013.

L&G also owns a modular housing business. He has invested heavily in the operation, which has racked up heavy losses as it grows. In 2020 he recorded a pre-tax loss of £ 30.2million.

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