Crest Nicholson FY profits meet guidance

Housebuilder Crest Nicholson said on Tuesday that full-year adjusted pre-tax profit was in line with its guidance as revenues and home completions rose despite a "more challenging" operating environment.

In its preliminary results for the year to the end of October 2022, the company said adjusted pre-tax profit pushed up to £137.8m from £107.2m a year earlier, with revenues up 16.1% to £913.6m. Meanwhile, home completions rose 13.6% to 2,734.

Profit after tax, however, tumbled to £26.4m from £70.9m the year before, dented by a £105m exceptional charge to cover the company's latest estimate of the cost of meeting its building safety pledge.

"The UK is clearly facing a challenging macroeconomic outlook in the near term," Crest Nicholson said.

"The board is cognisant of the uncertainty and headwinds the sector is currently facing, including rising interest rates and the declining mortgage availability. Accordingly, our immediate focus will be to deliver our strong forward order book and maintain a strong financial position.

"As we start 2023, there are signs of the resilience that has characterised the housing market through recent years. The cost of borrowing is starting to reduce and availability remains good for those with higher levels of equity. Demand for new homes is still strong as evidenced by our sales indicators and web traffic. Finally, inflation is forecast to have peaked and it is hoped will start to recede during 2023. We remain confident in the long-term fundamentals of the housing market."