(Reuters) - Homebuilder Crest Nicholson (L:CRST) on Tuesday forecast annual earnings ahead of market expectations and reinstated dividend payouts, due to a strong recovery in the housing market, while warning of fresh challenges in the face of Britain's latest new coronavirus lockdown.
"Expectations that COVID-19 has driven a structural change to the balance of office and home working has featured strongly in customers' reasons for considering a Crest Nicholson home", the company said.
Homebuilders have been benefiting from pent-up demand as well as stamp duty breaks after the initial round of coronavirus lockdown, but the new national stay-at-home orders introduced last week could slow down that boom.
The company, which builds houses and flats across the southern half of England and the Midlands, said annual adjusted pretax profit will be significantly ahead of consensus 37.9 million pounds and at the upper end of its previous outlook of between 35 million to 45 million pounds.
Forward sales by end of October stood at 2,289 units, compared to 2,013 units last year.