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Crest Nicholson sales up but profit falls

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  • 29/01/2019
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Crest Nicholson sales up but profit falls
Housebuilder Crest Nicholson delivered 3,020 new homes in the year to 31 October 2018, three per cent higher than a year earlier.

 

The average selling price ticked up 1.3% to £393,000 on open market sales.

Sales, including those from joint ventures, rose by seven per cent to £1,136.6m from £1,065.6m in 2017. The housebuilder said its forward sales at mid-January stand at £639.4m from £575.7m in 2017, 11 per cent ahead of prior.

Statutory revenue rose by nine per cent to £1,136.1m compared to £1,043.2m a year earlier.

However, pre-tax profit was 15 per cent down to £176.4m from £207.0m in 2017, whilst operating profit margin rose by 16.7% compared to 20.3% a year earlier.

Gross development value of land pipelines was up three per cent to £12,083m from £11,736m in 2017.

Chief executive Patrick Bergin said that the company has faced some challenges in London and with sales at higher price points where political and economic uncertainty has adversely impacted customer demand and this is likely to continue pending Brexit resolution.

“Our forward sales are strong, boosted by our strategic partnerships and our new channels to market.

“Pricing is stable, build cost inflation has moderated and we have implemented plans to mitigate margin pressure, which will take effect progressively over the next few years.

“Our revised business strategy and focus on cash generation underpins our confidence in generating sustainable shareholder returns.”

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