“Crest Nicholson to close London office and build more ‘flat pack’ houses as costs bite”

So sad that their profit margin has dropped from 20.3% to 18%! In 2017 Crest Nicholson’s chief executive, Stephen Stone, was set to receive a share bonus worth almost £812,000, on top of a salary of £541,158, while chief operating officer Patrick Bergin was set to net £562,500, in addition to pay of £375,000.

Maybe that’s where their profits are going … just a thought …

And better not anticipate any affordable housing in their “flat pack” developments!

“Housebuilder Crest Nicholson is feeling the pinch of rising construction costs and a slower housing market, prompting it to close its Central London office and expand production of so-called “flatpack” housing structures.

In its half-year results, Crest Nicholson said that it expects its margins to be around 18pc for the full year compared with 20.3pc last year – and at the lower end of its 18pc to 20pc range – due to the “generally flat” pricing environment.

Shares in the FTSE 250 housebuilder fell more than 7pc in morning trade. …”

https://www.telegraph.co.uk/business/2018/06/12/crest-nicholsons-margins-squeezed-rising-costs/

One thought on ““Crest Nicholson to close London office and build more ‘flat pack’ houses as costs bite”

  1. Personally I find a profit margin of 18%-20% on a high-value commodity like housing to be obscene – it is far greater than necessary for survival, which indicates that the competitive market is simply not working in housing – which I put down to the lack of available building plots, which in turn would appear to be caused by the big developers having cornered the market in building land and created massive land banks.

    Put simply, this is a quasi monopoly and the government should be legislating to break it rather than allowing developers to write the planning rules (whilst at the same time accepting party donations from those very same developers).

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.