January 25, 2017
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| Crest Nicholson builds homes in the south of England and the Midlands CREDIT: CHRIS RATCLIFFE |
Crest Nicholson has reached its £1bn sales target despite taking a revenue hit as buyers walked away from deals in the weeks surrounding the Brexit vote.
The FTSE 250 firm’s chief executive Stephen Stone said an increase in the number of buyers cancelling purchases of its homes in the period leading up to and just after the referendum in June cost the business £40m.
But demand returned by July, he said, buoyed by a strong jobs market and the availability of mortgages, meaning the firm was able to hit its target. “This demonstrates how robust the UK housing market is,” he said.
The company today reported that it was on track to significantly boost the number of homes it builds by the end of the decade, with a target of 4,000 units each year. In the 12 months to October 31, 2016, the company built 2,870 homes, 5pc more than in the previous year. Its gross development value for its pipeline of land also increased 2pc, to £10.6bn.
“We’ve set a target for the next three years of 30pc growth in volume and growing revenue from £1bn to £1.4bn,” Mr Stone said. Pre-tax profits for the year were 27pc higher at £195m.
Mr Stone said he did not expect further uncertainty in the market as the UK moves through the process of leaving the European Union, and was confident in the company’s ability to sell its homes.
“UK workers who have jobs and can get a mortgage seem to be carrying on as normal,” he added, pointing to good availability of land as another factor helping the business.
Crest Nicholson’s exposure to homes in London worth more than £1m, which have seen a more dramatic drop-off in buyers than other parts of the market, is less than 10pc of its business, analysts estimate.
http://www.telegraph.co.uk/business/2017/01/24/crest-nicholson-reaches-1bn-sales-target-despite-brexit-hit/
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