Crest Nicholson H1 profits rise, but cautions over UK election

FTSE 250 housebuilder Crest Nicholson reported a rise in profit and revenue for the half year and said it is on track to deliver full-year revenue growth, but cautioned that the UK election could bring about uncertainty.

In the six months to 30 April, pre-tax profit rose to £76.2m from £72.6m on revenue of £419.7m, up 3% from the same period a year ago and above consensus estimates of £399m. Meanwhile, the dividend per share was upped to 11.2p from 9.1p in 2016.

Open market average selling prices excluding the private rental sector were up 12% to £418,000, while unit completions excluding PRS were broadly in line with last year at 1,021 compared to 1,033. Overall unit completions were down to 1,064 from 1,206, as expected, mostly due to PRS delivery timing.

Forward sales at mid-June were up 4% on the previous year at £540.4m, while forward sales for the full year 2017 including year-to-date completions at mid-June were 6% ahead of 2016.

Chief executive Stephen stone said: "Crest Nicholson has delivered solid foundations for another year of growth in the first half of 2017. We have taken the first steps to establish a new division in the Midlands, increased outlets, built momentum in 2017 forward sales and pursued disciplined expansion of the land pipeline.

"The outcome of the UK General Election may introduce some uncertainty in the short term but we expect the new build housing market to remain robust. Strong levels of employment, low interest rates and good mortgage access - including through the Help to Buy Scheme - should all contribute to a sustainable new build housing market."

The company added that it is on target to deliver on its plans for 4,000 homes and £1.4bn sales by 2019.