Reporting that the trading for the whole year has been in accordance with its outlook, housebuilder Crest Nicholson PLC said it was entering 2006 with forward sales of 13 per cent higher than in year 2004.
The company expects similar housing market conditions in 2006 as compared to this year. It added that the fundamentals of the housing market remained positive with low levels of unemployment and also as housing supply undergoes a continued shortage in key areas of Southern England and the Midlands.
Chief Executive Stephen Stone said: “Trading for the full year 2005 has been in line with our expectations. We are pleased with our volume performance in both open market and affordable housing.”
According to the company sources, open market housing completions recorded a rise of about 3 per cent in 2005. Affordable units sold to housing associations were lesser compared to 2004 with more than 600 completions, but they were well ahead of the 550 units estimated by the company in its announcement earlier. The average selling price increased by around 5% to around £220,000 because of the mix effect of affordable units’ lower volumes sales.
Crest Nicholson’s land sale programme for 2005 overtook last year’s levels, while operating margins as a whole for the year 2005 were a little over 1 per cent, which is lower than for the year 2004 owing to incentives, larger sales discounts, low build cost inflation and higher mixed use commercial sales.
The company managed to maintain the short term land bank at around the same level as October 2004.
Crest's fiscal year is between November 1 and October 31 and the annual results will be posted on January 25.
Crest shares closed at 411 pence on Tuesday, which values the group at approximately 449 million pounds.
Posted
on : Wed, 23 Nov 2005 20:20 GMT | Business News
By : Salim Patel
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