Pre-tax profit at L&G-owned house builder falls by one-third

“The stabilising of interest rates, reductions in inflation and more competitive mortgage rates will improve affordability,” he added.

“Cala is well placed to navigate the changing market conditions with the backing of our owners, Legal & General, alongside the talent, dedication and quality of our teams.”

Mr Whitaker made no mention, however, of recent reports that L&G is lining up bankers at Rothschild to run an auction of the company.

Sky News reported earlier this month that Cala was likely to be valued at up to £750m in a sale.

António Simões, a former HSBC and Santander executive, was recently appointed as the new chief executive of L&G.

Mr Simões described Cala as “a very strong business” during an earnings call last month.

Cala maintained a similar selling rate to last year of 0.63 sales per outlet per week, which Mr Whitaker pointed to as a sign of “consistent delivery”. As of 10 March 2024, this had risen up to 0.71 sales per site per week.

Mr Whitaker said the strong sales performance has “given us confidence to execute our strategy to invest in land for future years”.

“In 2023, Cala contracted 24 new sites, capable of delivering over 4,300 new homes. These sites have a gross development value of £2.1bn with the average selling price of around £500,000,” he added.

“We remain committed to this strategy, and our land and planning teams across the UK are actively seeking further opportunities to invest in sustainable developments in desirable locations.”

In August last year, Cala received approval for a development of 125 new homes in Kent, 40% of which will be affordable.

Tonbridge & Malling Borough Council gave the green light for the site, which is north of Lower Haysden Lane in Tonbridge.

Cala said its plans could contribute nearly 15% of the council’s target of 800 new homes a year.