22nd Mar 2022 10:11
(Alliance News) - Crest Nicholson Holdings PLC said its sales rate has increased since the start of 2022, and the strong UK housing market has allowed it to pass on cost increases with sales price hikes.
The Chertsey, Surrey-based housebuilder told its annual general meeting on Tuesday that its private sales per outlet per week increased to 0.98 in the past eight weeks from 0.80 in its financial year that ended October 31 last year.
As of Friday last week, the company's order book was 84% covered for financial 2022 revenue, up from 63% when it reported its annual results back in January, so it is confident in meeting its revenue target for the current year.
Crest Nicholson said that input cost inflation is likely to increase in the months ahead due to rising energy prices and supply chain disruption, caused by the conflict in Ukraine. However, it is managing to offset these cost increases through sales price inflation.
"Demand for housing continues to outstrip supply, and Crest Nicholson has a clear growth strategy in place to capitalise on these market conditions," it said.
Expansion continues, the company said, with a new office in Leeds and a business leader appointed for its new Yorkshire division. Crest also has identified a leader for its new East Anglia division, joining in June, and it expects to be operating in this region in the second half.
Crest will publish its interim results, for the six months ending April 30, on June 14.
The stock was up 0.4% at 290.24 pence on Tuesday morning in London, in line with the rise in the wider FTSE 250 index.
By Tom Waite; [email protected]
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