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Crest profit hits £25m
00:00 04 Jul 2001
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by John Leitch
Crest Nicholson, now a residential developer rather than a traditional housebuilder, has announced an interim pre-tax profit of £25m, an increase of 14% over the comparable period in the previous year. Turnover was 16% higher at £270m.
Much of Crest's improvement stemmed from its push into major concept schemes. They now account for 58% of Crest's landbank.
John Callcutt, chief executive, said: "Major concept schemes are selling extremely well and continue to achieve premium prices. Sales are initially made from the periphery of the site with the premium for location and aspect increasing as the development progresses inwards."
Crest announced that it has snapped up a further major concept site, a £135m urban regeneration project at Attwood Green, Birmingham, which will provide 1,200 dwellings.
Crest's construction division, which trades as the Pearce Group, at last delivered an operating profit, generating a figure of £500,000.
"We're bidding at margins of 7.5% to 8% gross, which makes us 0.5% net," said Calcutt.
He said he hoped to cut overheads to 6% in Pearce's work for retail and leisure clients, in order to generate margins of 1.5%
Crest Nicholson, now a residential developer rather than a traditional housebuilder, has announced an interim pre-tax profit of £25m, an increase of 14% over the comparable period in the previous year. Turnover was 16% higher at £270m.
Much of Crest's improvement stemmed from its push into major concept schemes. They now account for 58% of Crest's landbank.
John Callcutt, chief executive, said: "Major concept schemes are selling extremely well and continue to achieve premium prices. Sales are initially made from the periphery of the site with the premium for location and aspect increasing as the development progresses inwards."
Crest announced that it has snapped up a further major concept site, a £135m urban regeneration project at Attwood Green, Birmingham, which will provide 1,200 dwellings.
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Crest's construction division, which trades as the Pearce Group, at last delivered an operating profit, generating a figure of £500,000.
"We're bidding at margins of 7.5% to 8% gross, which makes us 0.5% net," said Calcutt.
He said he hoped to cut overheads to 6% in Pearce's work for retail and leisure clients, in order to generate margins of 1.5%
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