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British property development company Crest Nicholson (CRST.L) reiterated its full-year guidance on Tuesday as it posted a single-digit increase in revenue during its fiscal first half which was supported by rising average selling prices.

The Chertsey, Surrey-headquartered company generated revenue of 501.9 million pounds ($637.8 million) in the six months ended April 30, up 7% from the corresponding period of the prior year. The increase was attributed in part to an 8% jump in open market average selling prices to 413,000 pounds from 384,000 pounds a year earlier.

The results were also supported by the company implementing its revised strategy, which saw it pause growth and de-risk its open market sales program through increased pre-sales and partnership working.

Diluted earnings per share fell by 11% to 20.2 pence from 22.6 pence a year earlier.

It added that its strategy to reduce forward sales risk through an increased proportion of pre-funded, presold homes had realized a 15% increase in its total forward sales position. The increased certainty traded an element of operating margin, which together with generally flat pricing and continuing build cost inflation, contributed to a reduction in the operating margin, the company added.

“Given the current market, the board remains confident in the prospects for the rest of the year and in achieving earnings in line with consensus,” Crest said.

 
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