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Shares in Crest Nicholson Holdings PLC on Thursday jumped after the housebuilder reported an encouraging start to the year with early evidence of operational improvements. Surrey, England-based Crest Nicholson said the open market sales rate was 0.61 per week per outlet in the 10 week period to March 14 compared with 0.50 a year ago, supported by self-help initiatives and revised incentive schemes. Chief Executive Martyn Clark said: ‘I am pleased to see early signs of progress from our operational and sales improvement initiatives, reflecting our continued commitment to strengthening the group’s performance and delivering value. While it is still early days, these efforts are beginning to make a positive impact.’ In response, shares in Crest Nicholson climbed 12% to 170.10 pence each in London on Thursday morning. However, they are down 18% in the past 12 months. The company said it remains on track to deliver full-year results in line with guidance, with its cash performance tracking better than expected in the first four months. ‘Market condition remains stable, with mortgage rates improving marginally. However, with interest rate reductions now expected to be slower, stubborn inflation and broader global macro-economic uncertainty, the housing sector remains susceptible to weak consumer confidence,’ Crest Nicolson added. The trading update came ahead a capital markets day presentation at which the housebuilder will set out medium-term guidance from financial 2024 to financial 2029. Over the five years, Crest Nicholson is targetting mid-single digit percentage growth per annum in home completions to 2,300 plus units. It is eyeing an average annual improvement of gross margins of around 100 to 150 basis points per annum to 20% plus, overhead reduction to around 7% of revenue by 2027, and an average return on capital employed improvement of 200bps per annum to 13%. In the financial year that ended October 31, 2024, Crest Nicholson reported home completions of 1,873, a gross profit margin of 14.0%, and an ROCE of 4.1%. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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