British housebuilding company Crest Nicholson Holdings Plc (CRST.L) on Thursday said it is on track to report annual results in line with its outlook, as its cash performance is tracking better than expected in the initial four months of the financial year.
The company also provided a medium-term outlook for the period from fiscal 2024 to fiscal 2029. During the period, the company expects mid-single digit percent growth per annum in home completions to 2,300+ units. Average annual improvement of gross margins c.100-150 bps per annum to more than 20 percent.
Crest Nicholson also projects an overhead reduction to c.7 percent of revenue by fiscal 2027. Average ROCE improvement of c.200 bps per annum to 13%+ is expected for the period, the company added.
Looking ahead, the company said market conditions continue to remain stable, with mortgage rates improving. It added that with interest rate reductions expected to be slower, stubborn inflation and wider global macro-economic uncertainty, the housing sector is vulnerable to weak consumer confidence.
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