Crest Nicholson says that it is finding the market in London and at higher price points challenging due to Brexit.
In announcing its final results for the year ended 31 October 2018 the company said its sales were up 7% to £1,136m and volume was up 3% to 3,020 homes. However, pre-tax profit fell 15% to £176m over the previous year.
In commenting on the results Patrick Bergin, Chief Executive, said: “The business has had a good year operationally, with an increase in the number of new homes delivered. However, we have faced some challenges in London and with sales at higher price points where political and economic uncertainty has adversely impacted customer demand and this is likely to continue pending Brexit resolution.”
Crest Nicholson is a predominantly high end, south east based developer – something that would at one time have been considered a licence to print money. However, the company’s recent comments – alongside ongoing Brexit uncertainty – could mean that the new homes market in the south east will prove challenging for some time.