Crest Nicholson says trading remains robust

Housebuilder Crest Nicholson said on Thursday that the trading environment has remained robust, with good sales across its areas of operation.

The group said buyers were still benefiting from strong levels of employment and wide mortgage access, while modest levels of sales price inflation in line with earnings growth were also helping to maintain affordability.

Crest said cumulative open-market forward sales revenues (excluding the private rented sector) of £312m are broadly level with the £311m achieved at the same point last year, while the total forward sales are 5% higher at £506m.

The housebuilder said that following the “disturbance last year” in the aftermath of the vote to leave the European Union, it was pleased to have reached landmark sales of £1bn, in line with its stated target and marking a 90% increase in revenues from 2013, when it was re-listed after its initial public offering.

The company re-iterated its commitment to further stretching targets for 2019, of 4,000 homes and £1.4bn of sales. Crest said land investment has been strong, with replenishment levels increasing to seed an additional operating division in the Midlands, following the successful launch of its new Chiltern division in 2015. In addition, the company is engaged with key partners in examining approaches to off-site manufacture, to further support the delivery capacity of the business.

“The robust sales outlook, combined with the actions that the business is taking to expand its operational footprint, underpin the board's confidence that the company will continue to deliver on its stated growth objectives.”