Crest Nicholson sinks as profits drop
FTSE 250 housebuilder Crest Nicholson (LON:CRST) has reported that pre-tax profits for the six months ended 30th April dropped to £74.8 million due to increasing costs of sales. Revenues climbed by 13% to £473.8 million as average selling prices rose by 5% and the number of units grew by 18%.
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Management warned that margins would likely remain at the lower end of estimates for the remainder of the current year, with pricing also likely to flatten out. Analysts from Accendo Markets said that “with the company unable to significantly upgrade their pricing structure as the housing sector was being hit by Brexit uncertainties, there was precious little Crest Nicholson was able to achieve to offset rising cost pressure”. Shares in Crest Nicholson declined by 5.65% to 421p as at 1330 BST.
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