Housebuilder Crest Nicholson said on Thursday that it swung to a first-half profit as it upgraded its full-year profit guidance amid solid demand.
In the six months to 30 April, the company swung to a pre-tax profit of £36.3m from a loss of £51.2m in the same period a year ago, with revenue up 35.2% to £324.5m. Meanwhile, completions rose to 1,017 from 775.
Crest said market conditions have been favourable and consistent, supported by the government’s decision to suspend stamp duty and to allow the sector to remain open despite the pandemic.
“Consumer confidence in the stability of the housing market, coupled with changing working patterns and lifestyle choices, have underpinned demand, and meant both sales rates and prices have exceeded the pre-pandemic level,” the company said.
“Since January 2021 demand has steadily increased with sales rates at their strongest in March and April.”
As a result of the strong first half, Crest said it now expects adjusted pre-tax profit for 2021 to be “at least” £100m.
Chief executive Peter Truscott said: “We are making good progress in all five of our strategic priorities. Our balance sheet has been transformed and positions us strongly to grow in the future. Having completed the first part of our turnaround strategy, and implemented our operational efficiency programme, our focus now moves to rebuilding operating margins and delivering sustainable growth.”
