(Alliance News) - Crest Nicholson Holdings PLC on Thursday backed its adjusted profit guidance for financial 2022, expecting it to be in line with the previously guided range of GBP135 million to GBP140 million.
The Surrey-based housebuilder said forward sales as at November 11 were 2,038 units, down from 2,502 units a year ago. But it said sales pipeline for financial 2023 shows "good visibility".
Chief Executive Officer Peter Truscott said: 'We continue to make good progress against our strategy with further revenue growth, operating margin expansion, an increase in return on capital employed and excellent cash generation throughout the year. We are pleased to have mobilised operations in Yorkshire and East Anglia with strong teams in place and good opportunities in these regions. However, given the well-publicised economic conditions we believe it is the right decision to defer the planned opening of a third new division and adjust the pace of growth in our existing ones until a more stable environment returns."
Looking ahead, it expects adjusted pretax profit for the year that ended on October 31 to be within its previously guided range of GBP135 million to GBP140 million. In financial 2021, adjusted pretax profit was GBP107.2 million.
Net cash amounted to GBP276.5 million on October 31.
Additionally, Crest Nicholson said it completed its new GBP250 million revolving credit facility, which will expire in October 2026. It said the facility provides "strong levels of liquidity to complement the year-end net cash position".
In June, Crest Nicholson said it swung to a pretax loss of GBP52.5 million in the six months ended April 30, from a profit of GBP36.3 million in the same period a year before. Revenue rose 12% to GBP364.3 million from GBP324.5 million.
Shares were down 1.5% at 217.84 pence each on Thursday morning in London.
By Xindi Wei; xindiwei@alliancenews.com
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Crest Nicholson (CRST)