Thursday 24 June 2021 7:30 am

Booming property market helps housebuilder Crest Nicholson swing to profit

Soaring house prices and a flurry of activity in the market helped Crest Nicholson move from a loss to a profit in the six months to 30 April.

Profit before tax at the housebuilder for the first half of 2021 stood at £36.3m, up from a loss of £51.2m a year earlier.

Revenue in the period increased to £324.5m, up from £240m in the corresponding period a year ago, while home completions increased to 1,017 from 775.

Due to skyrocketing house prices, Crest Nicholson was able to make more money on sales than it was a year ago, as well as sell more units.  

For the six months in question the business saw sales of 2,771 units and a gross development value (GDV) of £691.8m as at 18 July, compared with 2,715 units the year before, and £575.1m in GDV.

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.

“We are evaluating options to enter new geographical markets and look forward to outlining these future growth plans and our long-term financial targets later this year.”

Anthony Codling, CEO of property platform Twindig, added: “Crest had a tougher 2020 than most of its peers, but it has now had the jab and the vaccine is working.

“In the half-year, its home sales are up 31 per cent and profit after tax up 700 per cent and the outlook for the full year looks just as healthy. Crest has used the lockdowns to its advantage focusing on internal issues and as lockdown eases it has emerged all the better for it.”