Strong growth at Crest despite “flat pricing”

Crest Nicholson has seen strong growth in revenue and housing unit numbers in the past six months according to a trading statement issued today.

In the six months to the end of April 2018, completions were 17.6% up year on year at 1,251 with forward sales for 2018, including year to date completions, 11% ahead of the same period last year. The firm expects reported revenues for the year to be grow by more than 15%.

But Crest says it has experienced flat pricing against a backdrop of continuing build cost inflation at 3-4% which will mean that operating margins for the full year are expected to be around 18%, at the bottom end of its guided range.

Open-market average selling prices (ASP) have increased by 5% to £439,000 (excluding PRS), primarily due to changes in product and location mix. This is expected to represent a peak level for the business as current land investments across the business are in locations with a lower prevailing ASP, in line with the firm’s strategy.

Sales rates reflect the change in product and location mix, with the higher ASP product selling at a slower rate. For the first six months …