Housebuilder Crest Nicholson has reinstated its dividend after buyers flocked to agree deals once restrictions in the first lockdown eased.
The FTSE 250 builder gave the update alongside saying it expects expects adjusted pre-tax profit for the year to October to be “significantly” ahead of the £37.9 million analysts had pencilled in, and at the upper of the previously guided range of £35 million - £45 million.
Crest Nicholson saw its first half income hurt by the pandemic, as the housing market was effectively shut down in March. People were urged to avoid moving where possible, and viewings were not allowed.
But restrictions in the sector eased in May, and a stamp duty holiday was introduced in July.
Crest Nicholson said during the summer it had seen good trading.
It added: “The release of pent-up demand, whether due to customers putting off moving because of Brexit uncertainty or subsequent Covid-19 disruption, and the benefits of the stamp duty holiday, have supported near-term confidence levels in the housing market.”
Forward sales as at October 31 stood at 2289 homes worth £480.5 million, up from 2013 homes at £378 million last year.
During the period the firm made a number of cost savings, with boss Peter Truscott focusing on areas such as reducing building costs by using fewer suppliers
Truscott said: “The introduction of another national lockdown will undoubtedly bring fresh challenges, but we welcome the Government's support to maintain construction activity and for the housing market to remain open for business.”
He said: “Although the macro-economic outlook is uncertain our strategy will remain unchanged. We will maintain our strong focus on delivering operational efficiencies and if our trading becomes significantly disrupted we will act decisively again to protect our enhanced balance sheet.”
In March Crest Nicholson scrapped its final dividend amid disruption from the coronavirus crisis. It now expects to reinstate a dividend effective from the interim 2021 results.
