Crest Nicholson increases volume target

Crest Nicholson plans to deliver “towards” 4,000 homes by 2019

Crest Nicholson plans to deliver “towards” 4,000 homes by 2019, higher than its previously stated target of close to 3,500 homes, it said today.

Reporting on its half year results, covering the six months to April 30 2015, the housebuilder said that its revised volume figure “reflects the refocusing of our London division into areas of greater affordability together with quantifying the anticipated level of delivery of units to the institutional private rental sector”.

Crest’s pre-tax profit jumped 52% to £58.3 million during its half year against the comparable period in 2014.

Its open market completions climbed 8%, with housing revenue up 29% which reflected volume growth as well as sales price and location mix impacts on the average open market selling price, Crest said. The open market ASP of its homes rose 15% to £309,000 compared to 2014.

During the half year period, sales rates improved 12% against 2014, averaging 0.93 per outlet per week. Buyer demand continued to be “very strong”, Crest said, with the firm remaining focused on maximising the productive capacity of its operational sites.

Forward sales as of mid-June 2015 were £436.4 million, 26% ahead of 2014.

Stephen Stone, Crest’s ceo, said: “Improving economic circumstances and a clear outcome in the general election provide a good operating backdrop for the sector and give us confidence to increase our volume target. The business is well positioned to continue on its growth trajectory, delivering high quality homes for our customers whilst generating strong returns for shareholders.”

 

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