Crest Nicholson Holdings plc Preliminary Results Announcement for the year ended 31st October 2013

Strong growth and good returns

Crest Nicholson Holdings plc (Crest Nicholson) today announces its final results for the year ended 31st October 2013.

2013 2013 2013 2012 Change
Pre-exceptional Exceptional costs Total Total (Pre-exceptional)
£m £m £m £m £m %
   
Units 2,172 1,882 +15%
   
Revenue 525.7 525.7 408.0 117.7 +29%
Cost of sales (384.5) (384.5) (296.2) (88.3)
Gross profit 141.2 141.2 111.8 29.4 +26%
Administrative expenses (44.1) (5.9) (50.0) (38.5) (5.6)
Operating profit 97.1 (5.9) 91.2 73.3 23.8 +32%
Operating profit % 18.5% 17.3% 18.0%
       
Profit before tax 86.8 (5.9) 80.9 62.1 24.7 +40%
       
Profit after tax 71.5 (5.5) 66.0 63.9 7.6 +12%
     
Earnings per share (pence)
- Basic 29.4p (2.3)p 27.1p 28.5p 0.9p +3%
- Diluted 28.9p (2.2)p 26.7p 28.5p 0.4p +1%

Commenting on today’s statement, Stephen Stone, Chief Executive said:

“These are an excellent set of results, which cap an exciting year for Crest Nicholson, in which the business returned to the public markets. Our extensive land bank has enabled us to deliver strong growth in volumes, bringing many more families into home ownership, whilst continuing to drive good returns for our investors. We are pleased to mark our return as a listed company by declaring a final dividend.

Government initiatives to assist purchasers in buying a new home have undoubtedly stimulated activity in the industry and we are playing our part by increasing production where possible. Private home completions were up 35% over the year and we took almost 600 reservations under the ‘Help to Buy’ scheme. Improving sentiment in the housing market and beyond along with an excellent pipeline of future projects across the southern half of England gives the Board great confidence in the outlook for the business.”

Performance highlights – all figures pre-exceptional

Sales

  • Housing legal completions up 15% at 2,172 (2012:1,882); open-market legal completions up 35% at 1,806 (2012: 1,342)
  • Sales per outlet week up 34% at 0.90 (2012: 0.67)
  • Forward sales at mid-January of £329.5m (2012: £218.7m), 51% ahead of prior year with 51% of this year’s forecast secured (2012: 45%)

Results

  • Turnover at £525.7m, up 29%
  • Operating profit margins up to 18.5% (2012: 18.0%)
  • Profit before tax up 40%
  • Strong balance sheet position; net cash at year end of £42.5m (2012: net debt £30.3m)
  • Return on average Capital Employed of 24.1% (2012: 20.7%)

Land bank

  • 1,895 plots added to the short-term land bank, across 19 sites; Short-term land bank now 7.5 years
  • Continued focus on strategic land, with net 1,700 plots added to the Strategic land bank across 10 sites
  • Over 3,000 plots allocated for development in local plans


For further information, please contact:

Crest Nicholson Holdings plc

+44 (0) 1932 580555

Stephen Stone

Patrick Bergin       

RLM Finsbury

+44 (0) 20 7251 3801

Faeth Birch

James Bradley

There will be a presentation to analysts today at 9.00am at RLM Finsbury, 9th Floor, Tenter House, 45 Moorfields, London, EC2Y 9AE hosted by Stephen Stone, Chief Executive, and Patrick Bergin, Finance Director.

An audio playback facility will be available at http://www.crestnicholson.com/investor-relations or by downloading the Crest Nicholson app following the presentation.

A full calendar of financial announcements for the forthcoming period is available via the Company’s Investor Relations website at http://www.crestnicholson.com/investor-relations

Preliminary Results Announcement for year ended 31st October 2013

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