Crest Nicholson (LSE:CRST) Holdings PLC said it is on track to meet revenue targets on the back of strong trading, reflecting the favourable housing market and robust demand for its homes.
The rate of private sales per outlet per week (SPOW) in the last eight weeks was 0.98, up from 0.80 for the full year to end-October 2021, the housebuilder said in a statement.
Its order book is over 84% covered for FY22 revenue, up from 63% in January, when the company announced its FY21 results.
“This represents a strong forward order position, providing good visibility and confidence in meeting our revenue targets for the current financial year,” the company said.
It cautioned cost inflation is set to rise because of increasing energy costs and said it is already seeing raw material supply disruption caused by the war in Ukraine. However, it expects to offset cost increases by raising sales prices.
Crest Nicholson (LSE:CRST) also said its expansion plans are progressing well and it has identified a business leader and office location for its East Anglia division, which should be operational in the second half of 2022.
Looking to the medium term, the group said it is confident about its prospects as housing demand continues to outstrip supply.
“Our operating model is highly efficient and is supported by a strong balance sheet, which will underpin growth in future earnings and provides resilience in times of uncertainty,” it said.