Strategy & Profile

Trading conditions remained extremely challenging during the reporting period and we have therefore been taking appropriate action to alleviate, as far as is possible, the ongoing impact of the recession and create added value. We have refined our business model and used our expertise to review our schemes to ensure ongoing viability, as well as re-planning them, where appropriate, to ensure they remain market-led.

Indeed, we believe the Group has a strong base for the future due to:

• its recently completed refinancing which will enable it to take advantage of its substantial landholdings.
• it being well placed to meet Government planning policy and regulatory requirements.
• underlying demand for new homes being set to outstrip supply for many years to come.
• its highly skilled and experienced people and management team.
• its core skills which enables it to deliver an integrated approach to development.
• its ability to change and add value.

Quality, integrated approach

We add value through our fully integrated approach to residential development, design and build contracting of affordable homes, commercial property development and land sales to traditional house builders. Through the delivery of sustainable communities contributions from many of these activities are often derived from the same project. We are therefore increasingly concentrating on the Group’s core skills of sustainable community development, together with estate regeneration where our extensive experience and reputation has enabled us to gain ‘first choice’ partner status with housing associations.

Key to our business strategy is to maintain a quality, added value approach regardless of the market sector we are involved with. We operate in this way because we recognise that high quality design and place making creates desirability and long-term value to new homes and commercial property, whatever the economic situation. It is also fundamental in securing planning consents.

Our objective

Our objective is to achieve and retain a leading position in our industry, by providing the best homes, property developments and construction services, as recognised by our customers, investors, competitors and all who have a stake in the profits of our success. We recognise that we will achieve our objective through our: people; customers; products and services; environmental and social awareness and our safeguards. We will demonstrate our commitment to this throughout the Report.

We encourage teamwork throughout the Group and an enjoyable approach to work even during these testing times, whilst retaining our culture for being straightforward and trustworthy with our people and stakeholders. We have been committed to Investors in People since 2000 and during 2010 we will be undertaking the recertification process.

Sustainable development

We remain committed to sustainable development specifically in relation to continued comprehension of new and emerging policies, legislation and reporting standards. This leads to the systematic application of sustainability issues in the Group’s practices and risk management procedures. We believe this approach enhances operational cost efficiency and an increased asset value for our residents, Housing Association partners, commercial organisations and other stakeholders.

However, despite the recession, developers will continue to be confronted with increasing costs arising from building regulations, planning policies, Section 106 demands and related climate change policies, all of which ultimately have to be absorbed by land values. In a small minority of cases, regulation and policy generates additional value sufficient to cover its cost. But in most cases it increases development costs significantly thereby reducing viability at time when increasing housing supply should be a priority for a nation which is facing an acute shortage. The cumulative affect of regulatory burden on development viability is therefore a major barrier to a sustained recovery in house building and commercial property development.

Profile

Countryside Properties is one of the UK’s leading housing and property development companies, which specialises in the creation of sustainable communities and Urban regeneration. The Group, which was established by Alan Cherry in 1958, has a £5.8 billion development programme principally within London and the Thames Gateway, the South East, East and North West of England.

Countryside Properties can deliver every aspect of development, including private and affordable housing, commercial property, and recreational and community facilities. Mixed-tenure and mixed-use schemes are therefore a major part of our activities and we can bring together all the ingredients required for the creation of sustainable communities and successful estate regeneration.

Stakeholder Engagement

Our stakeholders have diverse views and requirements and we are committed to engaging with them throughout the development process to ensure are projects meet the needs of those they affect. Our key stakeholders are shown in the table below.

We have a robust track record of partnership working with other organisations. We have found that working together with the HCA, local authorities, housing associations and local communities is often the most successful way of developing complex sites which benefit from the combined skills, experience and shared resources of the partners. Indeed, there will need to be more private and public sector partnering arrangements in the future as funding for development won’t be as readily available as in past years. New funding methods will have to be seriously considered. We believe public/private partnerships will be the most appropriate way for development programmes to be enhanced in the future.

Summary

The steps that have been taken to refine our business model and complete our refinancing, along with our continued sound company strategy and commitment to sustainable development, will provide a solid platform for future growth and profitability, particularly in light of the significant future opportunities.

Stakeholder Engagement table

Customers	Land Owners and Agents	Employees	Local communities	Affordable Housing Providers	Sub-Contractors, Consultants & Suppliers	Government	NGOs & Industry Bodies	Investors	Media
Residential. Commercial.	Landowners- Individuals and companies. Residential agents. Commercial agents.	Permanent. Temporary.	Residents Associations. Residents Groups. Charities.	Housing Associations / RSLs. ALMOs.	Sub-contractors. Consultants- planners, architects, engineers, environmental consultants and urban designers. Suppliers.	National Government- departments, MPs. Regional- Regional Development Agencies. Local government- Borough Councils, District Councils, Parish councils, planning authorities. Government Agencies- HCA, CABE, Development Corporations, Urban Regeneration Companies.	Non-Governmental Organisations. Industry-wide Initiatives- UKGBC, Zero Carbon Hub, Energy Efficiency Partnership for Homes. Industry Task Groups- NHBC Standards Committee, Sustainability East, Sustainable Construction East. Industry bodies.	Lloyds Banking Group and Cherry family. JV Partners.	National, regional and local, trade and consumer, TV and radio. Social media.

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Coopers Road, Southwark, London

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Greenwich Millennium Village, London