Crest Nicholson Holdings plc (Crest Nicholson) today issues a trading update in respect of the six months ended 30th April 2016, ahead of its half year results announcement on 14th June 2016.
Trading continues to be good and the Group remains on track to reach its stated target of £1bn of Revenues for the full year to 31st October 2016 and to continue growing the number of new homes it delivers.
Unit completions of 1,206 (2015: 1,124) are 7% ahead of prior year.
The sales rate per outlet week, including PRS, at 1.06 is 4% ahead of the rate of 1.02 for the first six months of last year.
As expected, reservation values excluding PRS for the first six months of the year reflect higher ASPs (up 24% to £387k) and a lower rate of sale per outlet (down 7% to 0.87) than the equivalent period last year, in line with our strategy to grow ASPs by investing in good quality locations.
Total forward sales of £409m and 1,965 units (2015: £336m and 1,786 units) are up by 22% and 10% respectively.
Included within total forward sales is the benefit of institutional private rental transactions at Faygate, near Gatwick and at Park Central in Birmingham, which will be delivering product in 2017 and beyond.
Forward sales (excluding PRS) of £324m are 8% higher than the £300m at 30th April 2015, with unit numbers broadly level.
The business has maintained its outlet breadth and operated from 44 sales outlets year-to-date (2015: 44) and expects that this number will grow throughout the second half of the year.
The land market continues to offer good opportunities and the business has maintained a disciplined approach to land acquisitions, acquiring to date 1,016 plots across 9 sites with a gross development value of £416m, more than replacing housing revenues for the six months to 30th April 2016.
After protracted planning-related challenges, it is particularly pleasing to note that the first residential phase at Longcross will shortly be underway, delivering product from 2017 onwards.
Stephen Stone, Chief Executive commented “We are continuing to see strong demand for new homes, underpinned by robust employment conditions and good mortgage access. The business remains well positioned to continue delivering for all of our stakeholders and is on track to reach its stated target of £1bn of revenues in 2016.”
Attractive housing market conditions continue to underpin sales rates and revenue growth.
Inflation in both sales prices and build cost have shown some signs of moderating, which – combined with rises in real incomes – will help to maintain affordability and support a stable housing market.
It remains the case that production capacity, clearance of planning conditions and skills availability are the critical constraints on volume delivery and will continue to be key areas of focus for the sector.
Against this backdrop, the Board is confident that the business is well positioned to deliver a strong operational and financial performance.
There will be a conference call for analysts at 8.30 (BST), hosted by Stephen Stone, Chief Executive, and Patrick Bergin, Finance Director. The dial-in details are:
Dial-in: +44 (0) 20 3003 2666
Title: Crest Nicholson Trading UpdatePassword: Crest Nicholson
For further information, please contact:
Crest Nicholson Holdings plc
+44 (0) 1932 580555
+44 (0) 20 7251 3801