Countryside reports a weak set of results

Housebuilder Countryside Properties unveiled a woeful set of financial results this morning (Wednesday), with pre-tax profit crashing to £16m, well down on the figure of £36m in the previous year.

Turnover in the 12 months to 30 September was little changed at £370m.

While rival housebuilders are pushing margins up from 15% towards the figure of 20%, Countryside’s figures give a margin of just 4.3%.

The company’s chairman Alan Cherry blamed the result on “weaker housing markets in the group’s area of operations as well as a reduced contribution from its land trading activities”.

Cherry, the group’s 71-year-old founder, launched a £218m take-over bid – effectively a management buyout – on Friday 11 November. The price of 275p-a-share offered shareholders a 41% premium to existing values.

However, Countryside shares have subsequently sprung to life and now trade at 280p, suggesting that the view in the city is that higher counter-offers could yet be launched.