Crest Nicholson has reported a drop in profits in its half-year results for the six months ended 30 April 2018.

The residential developer revealed pre-tax profit dropped 2% to £74.8 million (2017; £76.2m), while revenue rose 13% to £473.8m (419.7m). In addition, operating profit margins shrunk from 19.1% to 17.2%.

Patrick Bergin, Chief Executive, blamed costs inflation for squeezing profit margins.

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"The Group has delivered a good sales performance in the first half of the year," he said.

"The business continues to increase the number of homes built and carries positive momentum into the second half of 2018, with steady outlet growth and higher forward sales.

"Our experience of generally flat pricing against a back-drop of continuing build cost inflation has, however, had an adverse impact on our margins and we have taken a number of actions to seek to offset build cost pressures and invest in areas of greater housing affordability.

"Our robust business model, focused on delivering well-designed product across the Southern half of the UK, ensures the business is well positioned to thrive against a backdrop of continuing strong demand for housing."

(LM/MH)