The rate of sales growth continued to slow at Crest Nicholson (CRST) during the first half as it prioritised cash flow and dividends in a weakening residential housing market in London and the south east.
Residential sales and those forward sold for 2019 were 4 per cent lower than in the same period in the prior year, at £715m. However, the group has accelerated its shift towards lower price points, completing more joint ventures with housing associations and making selected land sales. Including commercial land sales, as well as joint ventures, the total sales value achieved to date was 4.2 per cent ahead of last year. That included completing a £229m joint venture with the Sovereign Housing Association to deliver 910 homes.
Sales per outlet week remained steady at 0.78, while the housebuilder enters the second half with an average of 58 outlets, 11 per cent up on the prior year. Dividend guidance of 33p a share for 2019 was maintained.
The shift in focus also meant net debt fell by 13 per cent to £68.2m, with a similar reduction in the proportion of land creditors.
