Crest Nicholson swings to profit, but sees cladding bill rise
The housebuilder posted pre-tax profits of £86.9 million for the year to October 31, 2021, against losses of £13.5 million the previous year.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Housebuilder Crest Nicholson has revealed another £29 million bill for high-rise cladding and fire safety measures as it swung to a full-year profit.
The group said the charge follows its latest assessment of potential building safety work needed across its properties in light of the Grenfell Tower tragedy.
It comes after the Government’s announcement last week that all leaseholders in high-rise blocks should not have to pay for remediation works on dangerous cladding, including those in properties between 11 metres and 18 metres tall.
Crest’s full-year results showed it jumped to a pre-tax profit of £86.9 million for the year to October 31, 2021, against losses of £13.5 million the previous year.
On an underlying basis, pre-tax profits more than doubled to a better-than-expected £107.2 million from £45.9 million.
It had upped its profit outlook last year thanks to strong first-half trading and robust forward sales in spite of the stamp duty holiday ending at the end of June, tapered to September 30.
Crest said in its latest report that forward sales stood at £719 million, or 2,702 properties, as at January 14, up from 2,435 a year earlier.
It sold 2,407 homes in 2020-21, up 7% on the year before.
Crest said it was seeing some signs that shortages of both workers and materials are starting to ease after supply chain troubles emerged last summer.
It said: “In the UK the full impact of Brexit especially on labour availability, was also clearly a feature.
“The group was able to navigate its way through these challenges successfully and is confident it is already seeing signs that these pressures have stabilised, and in some areas have started to reduce.”
Analyst Charlie Campbell at Liberum said: “The main message from the results is that the turnaround is complete… and that the group now has a good platform for future growth.”