Cala - the housing and property development group with a major office in Birmingham - yesterday posted record profits of £31.8 million for the year to June 30.
The expanding Scottish firm said the figure was a 13 per cent rise over the previous year. Group turnover - including joint ventures - increased by 15 per cent to £290.7 million compared with £253.5 million in 2006.
Cala said this was driven by a marginally higher average sales price of £257,000 compared to £255,000 in 2006, and higher revenues from land trading and commercial property.
The group sold 1,558 homes in 2007 compared with 1,418 homes the previous year and said that the house sales gross margin reached a record level, up to 21.7 per cent from 20.2 per cent in 2006, driven by tight control of site costs and good market conditions which negated the need for incentives and discounting.
The group's contracted landbank rose from 8,017 plots to 10,900 plots with a turnover value of £3.1 billion. Its consented landbank accounted for 3,378 plots with a turnover value of £1 billion.
In addition, Cala has an extensive strategic land portfolio with the potential to deliver over 11,800 plots. Of these, over 2,900 plots on 11 sites are included in current local plans for residential development.
Alan Brown, chairman of Cala Homes in England, said: "The length and quality of our landbank continues to underpin our business strategy.
"This enables us to establish the best possible product mix and to spend more time maximising the value of each site." He added: "Last year we enjoyed a healthy level of demand and good price increases across all our operating regions, driven by a strong economy coupled with a high level of consumer confidence.
"We are now beginning to experience a slowdown in the market and believe that trading conditions could be difficult for a period.
"However, this is likely to be tempered by lower interest rates, continuing low unemployment and the lack of supply of new homes. With a strong landbank containing a healthy balance between family homes and apartments aimed at the owner occupier and in strong locations, we are well positioned to meet the challenges of the next 12 months."
In the West Midlands, all three of the group's subsidiaries contributed strongly to the results.
Cala Homes (Midlands) started work on a record eight sites, with an end development value of £67 million.
The company is marketing a number of new developments across the Midlands. Houses are for sale at St Bernards Lawns in Solihull; at The Watergardens in Lower Penn; at Mansions II in Four Oaks; at The Paddocks in Balsall Common; Church Walk in Chasetown; Broughton Gate in Milton Keynes and Reeds Wood Place in Walsall.
New apartments are for sale at Dean House in Oxford, and at Coachman's Court in Station Road in Moreton-in-Marsh in the Cotswolds. New developments are planned soon for Coventry and Burntwood.