Crest Nicholson hopeful over demand after duty holiday end

CREST NICHOLSON has repaid furlough money, the housebuilder said today as it revealed demand for properties is looking encouraging beyond the end of the stamp duty holiday. The FTSE 250 company gave the update as it showed how the year to October 31 was one of two distinct halves where it swung to a loss.

It was originally impacted by political uncertainty in late 2019 and later in the first half of 2020 by Covid-19.

But restrictions were eased in May and trading since has been boosted by pent-up demand following the first lockdown and the stamp duty holiday.

Revenue dropped 37.6% to £677.9 million, and Crest Nicholson recorded a statutory pre-tax loss of £13.5 million from a £102.7 million profit due to factors such as writing down the value of some sites and Covid-19 costs. Stripping out one-off costs, adjusted pre-tax profits were ahead of City forecasts.

The firm has repaid £2.5 million of furlough money and reinstated a dividend. The shares rose 8p to 314.2p.

Chief executive Peter Truscott said: “Market conditions in the period following the easing of spring lockdown restrictions have been strong and consistent.”

He added: “The evidence so far is we are still making plenty of reservations for completions that go beyond the stamp duty deadline.” The scheme is due to finish at the end of March.

Elsewhere today, St Modwen Properties, which has a housebuilding arm, said Dame Alison Nimmo DBE will be appointed as a non-executive director. Nimmo was formerly boss of The Crown Estate.