Crest Nicholson PLC (LSE:CRST) kept its outlook unchanged as it reported a meaningful pick-up in sales rate in the first half and a big jump in profits.
The small-cap housebuilder completed 739 home sales in the first half, below last year’s 788, with the group generated a sales rate of 0.53 per outlet per week.
Revenue of £249.5 million was down 3% compared to a year ago, but operating profit jumped to £11.9 million from £6.2 million as margins recovered to 4.8% from 2.4%.
The second half has continued in line with market expectations, with the order book standing at 763 units, while a building remediation programme is progressing with 279 external wall and 270 internal assessments completed out of 293 buildings.
For the full year, guidance remained for volumes of 1,700-1,900 units, adjusted PBT of £28-38 million, and net debt of £40-90 million.
CEO Martyn Clark said "good early progress" had been made against each of the four key strategic priorities set out at a recent capital markets day in March.
He 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.
"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 FY29 targets and with it, attractive and sustained value creation."
Crest shares rose 1.3% to 191.7p on Thursday morning, up 13% over the past six months.