Latest news with #CrestNicholson
The Independent
2 days ago
- Business
- The Independent
Housing market recovering but ‘long way from buoyant', housebuilder says
Falling mortgage rates and wage rises are helping the housing market to recover, housebuilder Crest Nicholson has said as it revealed its profits tripled in recent months. The Surrey-based company nonetheless said it sold fewer homes over the first half of its financial year. Chief executive Martyn Clark said while conditions in the broader global economy are uncertain, there are some 'encouraging signs emerging in the UK housing sector'. He added: 'We remain mindful of volatility in the macroeconomic backdrop, which continues to impact consumers through concerns around affordability and job security. 'However, the market is now starting to benefit from increased lender support and better mortgage affordability as the interest rate environment starts to ease.' Wage growth is also making home buying more affordable for people, he said. 'However, we remain a long way from a buoyant market,' Mr Clark added. Crest's pre-tax profit jumped to £7.9 million in the six months to the end of April, from £2.6 million the year before. The total number of completed sales fell to 739 from 788 the prior year – which it said was down to it deliberately doing less 'bulk' housing sales, instead focusing on the 'mid premium' market. Average selling prices also dipped to £342,000, from £349,000 last year, which reflected the company selling a higher proportion of affordable homes. Cheaper mortgage deals have been entering the market since UK interest rates started being cut last year. Estate agents and lenders also reported a surge in activity ahead of April, when stamp duty relief became less generous for buyers. Furthermore, Crest said the Government's efforts to reform the planning system to reduce bottlenecks and reintroducing house building targets were slowly but surely leading to improvements in the market. On Wednesday, Chancellor Rachel Reeves announced she was allocating £39 billion to social and affordable homes over the next decade.
Daily Mail
2 days ago
- Business
- Daily Mail
Crest Nicholson profits triple as housing market shows signs of recovery
Profits at Crest Nicholson more than tripled in the last six months as lower mortgage rates and improved consumer confidence boosted the UK housing market. Crest reported an adjusted pre-tax profit of £7.9million for the six months ending 30 April, up from £2.6million a year ago. On a statutory basis, the housebuilder swung to a £9.4million profit after posting losses of £30.9million last year. On Wednesday, Chancellor Rachel Reeves announced an additional £10billion investment in the housing sector, which came on top of a £39billion 10-year programme announced earlier in the week. A greater share of Crest's new build sales during the quarter were 'affordable' homes, driving revenues down slightly to £249.5million. Home completions also slipped to 739, against 788 at the same point a year ago. The total weighted average selling price of properties across the group was £342,000, down from £349,000 by the same point a year ago. On lower average selling prices, the group said: 'The reduction reflected a higher proportion of affordable units in the overall mix. Open market private ASPs increased modestly to £422,000 (HY24: £421,000).' On 20 March, the group said it had launched a 'business transformation programme', which has led to some redundancies. Martyn Clark, chief executive of Crest, said: 'The housing market continues to show signs of stabilisation with an incrementally easing planning system, improving affordability and strong support from lenders. 'Customer appetite for the mid premium segment of the market, which is characterised by high-quality, well-designed homes in sought-after locations, and which is our focus segment remains robust.' He added: 'This places Crest Nicholson in a strong position to navigate the market with confidence and clarity of purpose, as we progress towards the delivery of our 2029 targets and with it, attractive and sustained value creation.' Last year, Crest Nicholson set aside £132million for fire safety work but is now clawing back some of that cash from supply chain firms with £11.8million recovered during the period. The group maintained its annual guidance. Clark said: 'I remain confident that with our experienced management team and dedicated workforce, we are well positioned to benefit as the market improves, reshape the business for long-term success.' In June 2024, the group unveiled its first profit warning in a twelve month period. Crest Nicholson shares rose 1.06 per cent or 2 per cent to 191.30p on Thursday, having fallen around 20 per cent in the last year. Adam Vettese, an analyst at eToro, said: 'Crest Nicholson's half-year report showcases a strong rebound amid a tentative UK housing market recovery. '[With] signs that the housing market could be set to stabilise and potentially improve into the second half of the year, some investors may see the current price to book ratio an attractive prospect, although the dividend remains modest.' He added: 'Net debt has climbed and there are still fire remediation concerns to address, which Crest Nicholson will have to navigate carefully. 'Despite this, shares have opened positively this morning and shareholders will be hoping this can be a platform to recover levels seen last year some 30 per cent higher.'
Reuters
3 days ago
- Business
- Reuters
Crest Nicholson's half-year profit soars as domestic housing demand firms
June 12 (Reuters) - UK Housebuilder Crest Nicholson's (CRST.L), opens new tab adjusted pre-tax profit more than tripled in the first half of the year, it reported on Thursday, as rising consumer confidence and declining mortgage rates boosted demand in the domestic housing market. Britain's near four-year high unemployment rate in the three months to April has raised hopes for another round of interest rate cuts by the Bank of England, which analysts say will lead to lower mortgage rates and better affordability in the UK housing market. "The housing market continues to show signs of stabilisation with an incrementally easing planning system, improving affordability and strong support from lenders," CEO Martyn Clark said in a statement. Crest reported adjusted pre-tax profit of 7.9 million pounds ($10.71 million) for the six months ended April 30, up from 2.6 million pounds a year ago. On Wednesday, British finance minister Rachel Reeves announced an additional 10 billion pound investment in the housing sector, which came on top of a 39 billion-pound 10-year programme announced earlier in the week. ($1 = 0.7376 pounds)
Reuters
3 days ago
- Business
- Reuters
London stocks gain ahead of spending review, US data
June 11 (Reuters) - London's FTSE 100 edged up towards an all-time high on Wednesday, as investors awaited a domestic public spending review and crucial U.S. inflation data scheduled in the day. The benchmark FTSE 100 (.FTSE), opens new tab was up 0.1%, coming close to an intraday record high. The mid-cap FTSE 250 (.FTMC), opens new tab was up 0.4% as of 0913 GMT. All eyes on the day were on Finance Minister Rachel Reeves' speech, where she will divide up more than 2 trillion pounds ($2.7 trillion) of public spending aimed at stimulating the British economy. Homebuilders and household goods stocks (.FTNMX402020), opens new tab gained 2.8% to hit a more than seven month-high, with Vistry (VTYV.L), opens new tab up 9%, Crest Nicholson (CRST.L), opens new tab gaining 5.5% and Bellway (BWY.L), opens new tab advancing 3% ahead of the speech. Most sectors were higher in the market, though heavyweight energy shares (.FTNMX601010), opens new tab weighed down 0.6%. Investors also awaited a key U.S. inflation reading for any signs that President Donald Trump's erratic tariff policies had started to show their impact on the economy. Representatives from the U.S. and China late on Tuesday agreed on a framework to put their trade truce back on track and remove some export restrictions from both sides. The agreement, however, is pending approval from the countries' leaders. Any signs of the deal coming into effect will be taken in stride by markets that have been grappling with the uncertainty created by an ever-changing U.S. trade policy and its impact on global economic growth. Ibstock sank 12.8% to the bottom of the FTSE 250, after warning of a hit to its adjusted EBITDA outlook for 2025. Ricardo shares jumped 25% to their highest level since early January after Canada-based WSP Global ( opens new tab said it would acquire British environmental and engineering consulting firm for about 363.1 million pounds ($489.6 million) including debt. Quilter (QLT.L), opens new tab gained 5.6%, among the toppers on the FTSE 100, after UBS upgraded the wealth manager's stock to "buy" from "neutral".
Yahoo
3 days ago
- Business
- Yahoo
British homebuilder shares hit seven-month high ahead of spending review
LONDON (Reuters) -British homebuilder shares rose sharply on Wednesday, ahead a public spending announcement from the UK finance minister that is expected to confirm 39 billion pounds ($52.54 billion) of funding for affordable homes in the next decade. An index tracking British homebuilder shares was last up 2.36% at its highest since November, building on Tuesday's 5.4% gain. Vistry shares rose nearly 9%, and topped the broad European STOXX 600 share index. Peers Crest Nicholson and Bellway rose 5.2% and 2.5%. ($1 = 0.7422 pounds)
