Crest Nicholson has seen "early signs of progress" from its operational and sales improvement initiatives, the housebuilder said in its latest trading update.

The firm said it had been an "encouraging start to the year", with its open market sales rate reaching 0.61 in the 10 weeks to 14 March, compared to 0.50 in 2024.

It said this was supported by its self-help initiatives, including ongoing training and upskilling of the sales team, revised incentive schemes and an enhanced product offering.

Crest Nicholson added that it remains on track to deliver results in line with current guidance, with its cash performance tracking better than expected in the first four months.

However, it did add that while the market "remains stable", the housing sector "remains susceptible to weak consumer confidence".

Chief executive officer at Crest Nicholson, Martyn Clark, said: "I am pleased to see early signs of progress from our operational and sales improvement initiatives, reflecting our continued commitment to strengthening the Group's performance and delivering value. While it is still early days, these efforts are beginning to make a positive impact."

In the trading update, Crest Nicholson said it was looking to develop future opportunities, focusing on "attractive mid-premium market" that aligns with its brand and land portfolio.

In its medium-term guidance, it is expecting mid-single digit percentage growth per year to 2029 in home completions to over 2,300 units, with an average annual improvement of gross margins between 100 and 150 bps per annum to over 20%.

Investment director at AJ Bell, Russ Mould, concluded: "When a company is looking to turn around its fortunes, an improving industry backdrop can make all the difference. That’s the case with Crest Nicholson as its assessment of trading conditions is in line with the cautiously positive tone of its wider peer group.

"The housebuilder has been hit by the difficult market backdrop of the last few years as house price growth has slowed, mortgages have become more expensive and harder to obtain and build cost inflation has ramped up.

"However, it has also been a victim of problems of its own making, including around fire safety issues on some of its builds. Bellway’s decision to walk away from a deal at the eleventh-hour last August will have done little to reassure investors about the company’s prospects."

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