Crest Nicholson on track to meet annual expectations after strong first half

19th May 2015 08:12

Housebuilder Crest Nicholson Holdings reported strong trading in the first six months of its financial year, buoyed by higher selling prices and an improved sales per outlet ratio.The FTSE 250 group said sales per outlet in the six months to 30 April were 0.93, up 12% year-on-year, while the number of outlets it was operating from rose to 44 from 42 in 2014.Unit completions rose 3% in the period to 1,124, while open market completions grew 8%, the company said in trading update on Tuesday.Average open-market selling prices rose 20% to £322,000, boosted by price inflation and by an improved product and location mix within the business, while forward sales at the end of April were at 1,786 units and £336m in value, a 25% and 29% increase year-on-year respectively."Purchaser appetite to secure a new home remains strong and conditions to support this level of demand are very favourable," said group chief executive Stephen Stone, adding that the group remained on track to meet its annual targets.Analysts at Shore Capital reiterated their 'buy' rating on the stock and hiked their price target from 499p to 560p."We had been too low in our previous and post-election revised valuation," they said in a note on Tuesday.Crest Nicholson shares were up 1.38% to 518.07 at 08:28 on Tuesday.