黑洞社区

Countryside has posted a 拢181.5m loss in the first half of the year as fire safety remediation costs and impairment charges made themselves felt.

The partnerships housebuilder reported the pre-tax loss for the six months to 31 March, compared to a profit of 拢38m in the same period the previous year.

The group鈥檚 profit figure was hit by a 拢109m provision to fix fire safety issues in its blocks over 11 metres in height under Michael Gove鈥檚 developer pledge.

Countryside is spending a further 拢19m to set up a standalone division to manage and deliver the works, which are expected to take around 10 years.

The group also recorded a 拢77m goodwill impairment charge relating to Westleigh, the Leicestershire-based housebuilder Countryside acquired in 2018. This followed a site-by-site review earlier this year after a profit warning in the first quarter of the year, which led to the departure of chief executive Iain McPherson.

The firm鈥檚 turnover also fell from 拢661m to 拢602m year-on-year, while completions decreased from 2,591 to 1,958 over the same period.

Countryside said this was due to 鈥渁n unusually strong comparative period which had benefited from Covid related deferrals鈥�.

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The housebuilder also said that despite losses in its modular business it remains 鈥渁bsolutely committed鈥� to modern methods of construction (MMC) and said it is aiming for half of all homes to be built by MMC by 2025.

However, it repeated that it is 鈥渃onsidering all options to minimise future losses鈥� through its modular business after a 拢6.5m deficit in the first half of the year, 拢3m of which related to its new factory in Bardon, Leicestershire.

The housebuilder said it expects adjusted operating profit of 拢150m for the full year.

Its order book, stands at 拢1.5bn, 25% higher than for the same period last year .

It said: 鈥淧erformance in the second quarter of the year showed improvement following a weaker performance in the first quarter which was impacted by delays to starting on a number of sites and operational challenges, including groundworker, timber-frame and roofing contractor issues.鈥�