South East house builder to exceed profit forecast

Aaron Morby 2 years ago
Share

South East house builder Crest Nicholson expects to deliver a pre-tax profit of over £40m this year, significantly ahead of expectations.

Truscott says structural change to the balance of office and home working has featured strongly in customers' reasons for considering a Crest Nicholson home
Truscott says structural change to the balance of office and home working has featured strongly in customers' reasons for considering a Crest Nicholson home

The firm said it had benefitted from a strong rebound in housing demand and planned operational savings in overheads and site efficiency programmes.

In an upbeat year-end trading statement, Cresh Nicholson said it would be reintroducing dividend payments at the next half year.

Peter Truscott, chief executive, said: “The introduction of another national lockdown will undoubtedly bring fresh challenges, but we welcome the Government’s support to maintain construction activity and for the housing market to remain open for business.

“Although the macro-economic outlook is uncertain our strategy will remain unchanged.

“We will maintain our strong focus on delivering operational efficiencies and if our trading becomes significantly disrupted we will act decisively again to protect our enhanced balance sheet.

“However, we expect the housing market to remain resilient to the impacts of COVID-19 and as such we are well-positioned to capitalise on that demand, particularly considering our product range and focus in Southern England.”

Internal reorganisation across Crest operating divisions and head office after the first lockdown will deliver £15m in annualised overhead savings.

Crest said its operational efficiency programme had identified £30m of specification savings through better discipline in procurement.

Truscott said this focus had also enabled Crest to improve the quality of materials, improve service levels and develop closer, more strategic relationships with trusted suppliers.

Crest said it had also identified £40m gross margin improvement from existing and future schemes through re-plotting the layout and types of units on those schemes.

The introduction of our a new standard house type range is expected to drive further benefits by way of significantly lower build costs, shorter build times and reduction in complexity.

Presently Crest has over 5,500 future units planned with this range with over 80% of open market houses switched to the new type by 2022.

Latest news

Average self employed labour rates top £1,000 a week

Average weekly earnings reach high for skilled trades
2 hours ago

BAM wins £49m Harrogate Convention Centre revamp

Local council hopes to sanction work start this autumn
50 mins ago

Renaker to top-out Manchester with 71-storey skyscraper

Developer lifts the lid on planned five-building cluster for phase 3 of Great Jackson Street development
9 hours ago

Costain bridge lift delayed by ground conditions

National Highways chiefs postpone planned lifting operation
1 hour ago

Nexus sells utilities and EV contracting arms for £78m

Group to now focus on remaining business at south east housing civils contractor Tamdown
1 hour ago

Speller Metcalfe lands lead role on £40m Tamworth revamp

Town centre to be transformed under ambitious plans
1 hour ago

Scaffold boss banned over covid loan abuse

Eleven-year director ban after misuse of £50,000 loan
20 hours ago

Gove issues six weeks ultimatum to sign building safety contract

Developers told to sign Government contract issued today or be banned from building homes
1 day ago

Firm fined £120,000 for lifting two builders in a telehandler bucket

Rochdale builder Hoyle Developments fined after repeated safety breaches
4 days ago

Hunt quashes reports HS2 will stop at Old Oak Common

Chancellor says no "conceivable circumstance" where HS2 would not terminate in Central London
3 days ago

London Chiswick roundabout 24-storey tower approved

Plan for 255 flats and offices finally passed after four previous schemes failed to proceed
1 day ago

Construction forecast to fall by nearly 5% this year

Private new build housing and RM&I to drive fall but infrastructure growth will also slow
1 day ago

Mace wins green office block at famous Fleet Street pub site

Contractor to build new 12-storey block pioneering latest sustainable construction methods
1 day ago

Firms readied for raft of net zero and building safety frameworks

Procurement specialist LHC to tender five mission zero retrofit and building compliance deals
4 days ago

Plans in for two Derby city centre schemes of 1300 homes

Eagle Quarter and Bradshaw Way schemes to breathe life into Derbion centre area
4 days ago

United Living names new infrastructure services MD

Former SSE Contracting operations director John Farrell joins multi-service contractor
4 days ago

Sunak promises Bill to build £100m Holocaust Memorial

Holocaust Memorial Bill will update historic legislation allow the building of a new memorial in London
4 days ago

Mace Interiors to transform Hanover Square office block

Refurbishment work to start this year on major revamp of Mayfair building
5 days ago

Garden village in Darlington gets £43m infrastructure cash

Transport and highways work will pave way for 2,000 new homes
5 days ago

Plans in for Lendlease £1.9bn Birmingham Smithfield scheme

Ambitious plans for City's old market area advance with enabling works hoped to start this year
6 days ago

TClarke on track for £500m turnover this year

Building services specialist sees 2022 revenue and profit up by around a third
5 days ago

McAlpine tenders M&E work at £340m Museum of London job

Demolition and first MEPH work packages come out to bid
5 days ago

BAM signs off on £65m Manchester First Street office job

Briggs & Forrester lined up for MEP package
5 days ago

Eurocell gets £1m insurance payout after cyber attack

UPVC giant details cost-cutting round as market weakens
5 days ago

Mace on board for £440m Manchester Airport upgrade

Green light for second phase of airport transformation programme
6 days ago

Inland Homes losses now set to hit £91m

House builder sells land as construction problems and slower sales wreck balance sheet
6 days ago

Plans in for Stoke on Trent city centre mixed-use scheme

Etruscan Square scheme consists of an arena, 300 homes, hotel and multi-storey car park
6 days ago

Landsec unveils latest £850m Buchanan Galleries plan

Subject to planning, earliest date for first construction would be summer 2024
7 days ago

Van Elle soars to record revenue in first six months

Revenue up a third to £80m at piling specialist with improved order levels ahead
6 days ago

Work starts on BSI Kitemark for MMC homes

Government backs new British Standard to lift barrier to modern methods of construction
6 days ago

Contractor services