Crest Nicholson: Profit triples as housing market recovers
Housebuilder Crest Nicholson has reaffirmed its annual guidance as it reported a jump in half-year profit.
The London-listed firm said adjusted pre-tax profit more than tripled to £7.9m in the six months ended 30 April. On a statutory basis, the company swung to a £9.4m profit after posting losses of £30.9m in 2024.
Revenue declined slightly to £249.5m as home completions also fell to 739, down from 788 last year.
“The housing market continues to show signs of stabilisation with an incrementally easing planning system, improving affordability and strong support from lenders,” chief executive Martyn Clark said.
“Customer appetite for the mid premium segment of the market, which is characterised by high-quality, well-designed homes in sought-after locations, and which is our focus segment remains robust.
He added: “This places Crest Nicholson in a strong position to navigate the market with confidence and clarity of purpose, as we progress towards the delivery of our 2029 targets and with it, attractive and sustained value creation.”
Crest Nicholson endured tough 2024
The FTSE 250 housebuilder endured a tough year in 2024 as increased building safety costs and falling completions hit the bottom line.
Annual pre-tax losses came in at £143.7m in a period that also saw Bellway walk away from a potential takeover.
Clark, who joined Crest last summer, was forced into a review of the business as it warned in February there was a “severe but plausible” chance it would breach its banking covenants.
But shares have risen around 13 per cent this year to date in a positive signal for the UK housing market.
“Our commitment to operational and commercial excellence has underpinned the better sales rates we have delivered, with a notable increase in sales rates since January, which are now more in line with industry standards,” Clark said.
“It is also visible in the improvement we are starting to see in achieved prices as our sales transformation becomes embedded.”