CREST NICHOLSON (CRST) – Construction
| Price: 148p -9.5% | P/E: 16.7x |
| Market Cap: £372m | Yield: 2.2% |
Housebuilder Crest Nicholson, which seems to be in a perpetual restructuring process, said it had made good progress on inventory and costs as well as right-sizing its land bank, leading to a net debt position ‘at the better end’ of its £40m-£90m guidance for the year to October.
Unfortunately, the underlying business still faces a ‘subdued’ new-build housing market so completions will be at the low end of the guidance range of 1,700-1,900 units and adjusted pre-tax profit will be at the low end or marginally below the guidance range of £28m-£38m.
Our View
At the risk of repeating ourselves, we see no need to own the housebuilders until conditions improve.
Admittedly valuations are cheap relative to long-term averages, but value by itself isn’t enough and so far we are struggling to find a positive catalyst.
Read the press release here: https://corporate.crestnicholson.com/investors/
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