Crest Nicholson on track for FY revenues of £1bn

FTSE 250 housebuilder Crest Nicholson reported a drop in underlying sales but said it remains on track to report full-year revenues of around £1bn.

In a trading update for the year ended 31 October, the company said unit completions were up 5% compared to last year but the underlying sales rate for the year averaged 0.81 sales per outlook week, versus 0.90 last year.

Crest Nicholson attributed the reduction in part to the higher average selling price of the locations and product it has been selling this year. In addition, it said that either side of the EU referendum sales volumes declined temporarily and there was a rise in the number of cancellations.

However, by the beginning of August purchaser confidence had largely recovered and sales rates across the last quarter of the year have averaged 0.77, in line with last year.

The company said sales in October continued at similar levels to the last quarter as a whole, averaging 0.77 sales per outlook week versus 0.75.

“Attractive housing market conditions continue to underpin sales rates and revenue growth. In spite of initial uncertainty arising after the referendum in June, purchasers are largely returning to the market, as high employment, good mortgage access and low interest rates continue to make this a very good time to buy a home.

“Sales price and build cost inflation have both moderated in the latter part of the year, which will help to maintain affordability and support a stable housing market.”

Also on Tuesday, the company announced that Patrick Bergin, group financial officer, has been appointed to the role of chief operating officer with immediate effect.

He will have responsibility for day-to-day operations and negotiating land acquisitions alongside chief executive Stephen Stone.

Crest Nicholson has started the search for a new CFO and in the meantime, Bergin will continue to administer the role.