Crest Nicholson, the London-listed housebuilder, has maintained its annual guidance following a surge in half-year profit. The firm reported that adjusted pre-tax profit more than tripled to £7.9m for the six months ending 30 April.
On a statutory basis, the company reported a profit of £9.4m, having posted losses of £30.9m in 2024.
However, revenue dipped slightly to £249.5m as home completions also decreased to 739, down from 788 the previous year, as reported by .
"The housing market continues to show signs of stabilisation with an incrementally easing planning system, improving affordability and strong support from lenders," said chief executive Martyn Clark.
He noted a robust customer appetite for the mid-premium segment of the market, characterised by "high-quality, well-designed homes in sought-after locations", which is Crest Nicholson's target segment
Clark added: "This places Crest Nicholson in a strong position to navigate the market with confidence and clarity of purpose, as we progress towards the delivery of our 2029 targets and with it, attractive and sustained value creation."
The FTSE 250 housebuilder had a challenging year in 2024 due to increased building safety costs and falling completions impacting the bottom line. Annual pre-tax losses amounted to £143.7m during a period that also saw Bellway withdraw from a potential takeover.
Mr Clark, who joined Crest last summer, was compelled to conduct a review of the business after it warned in February of a "severe but plausible" risk of breaching its banking covenants. However, shares have seen an approximately 13 per cent increase this year to date, signalling positivity for the º£½ÇÊÓƵ housing market.
"Our commitment to operational and commercial excellence has underpinned the better sales rates we have delivered, with a notable increase in sales rates since January, which are now more in line with industry standards," Mr Clark aded. "It is also visible in the improvement we are starting to see in achieved prices as our sales transformation becomes embedded."
Like this story? Why not sign up here for free to get the latest business news straight to your inbox.
