Housebuilder Crest Nicholson Holdings PLC (LON:CRST) will tell its annual general meeting today that the trading environment has “remained generally robust, with good sales across our areas of operation.”
In its AGM statement, Crest said: “Purchasers continue to benefit from strong levels of employment and wide mortgage access; modest levels of sales price inflation in line with earnings growth are also helping to maintain affordability.”
The group pointed out that cumulative forward sales revenues are £312mln, broadly level with the £311mln achieved at the same point last year, with total forward sales 5% higher at £506mln.
The FTSE 250-listed firm said: “After the disturbance last year arising from the vote to leave the European Union, the Company was pleased to have reached landmark sales of £1billion (including through joint ventures), in line with our stated target and representing a 90% increase in revenues from 2013, the year in which the Company was re-listed after its IPO.”
Crest re-iterated its commitment to further stretching targets for 2019 to 4,000 homes and £1.4bln of sales.
The firm concluded: “The robust sales outlook, combined with the actions that the business is taking to expand its operational footprint, underpin the Board's confidence that the Company will continue to deliver on its stated growth objectives".
Shares good run ...
In a note to clients, Peel Hunt analyst Gavin Jago said: “Short but reassuring statement which reports that trading has been generally robust and sales good across its geographies.”
He pointed out: “The shares have had a strong start to 2017, up by 24% vs 18% for the sector average.
“Despite the good run, the shares continue to look good value trading on a P/NAV of 1.67x vs sector average of 1.80x for 2017, while its RoE is 23.9% vs sector average of 21.0%.
“The dividend yield is also a key attraction at 6.5% for CY2017.”
The analyst said he is making no changes to forecasts for Crest, and maintained a ‘buy’ rating on the stock with a 690p target price.
In mid morning trading, Crest shares were 0.4%, or 2p lower at 559p.
-- Adds broker comment, share price --