Crest Nicholson Holdings plc Half Year Results 2016

Crest Nicholson Holdings plc (Crest Nicholson), a leading residential developer operating in the Southern half of England, today announces its half-year results for the six months ended 30 April 2016.

Strong revenue and earnings growth


 

2016

2015

Change


 

Total

Total

Total


 

£m

£m

£m

%

Revenue

  408.1

333.2

74.9

22%

Cost of sales

  (297.7)

(241.4)

(56.3)


Gross profit

  110.4

91.8

18.6

20%

Administrative expenses

 

(32.6)

(28.2)

(4.4)


Operating Profit

 

77.8

63.6

14.2

22%

Operating profit %

 

19.1%

19.1%

 -


Profit before tax

 

72.6

58.3

14.3

25%


 




Profit after tax

 

58.9

46.7

12.2

26%


 



Earnings per share (pence)


-       Basic

 

23.3p

18.6

4.7

25%

-       Diluted

 

22.9p

18.2

4.7

26%


 




 




Excellent operational and financial performance 

  • Housing legal completions up 7% at 1,206 (2015: 1,124); open market unit completions, excluding Private Rental Sector - (PRS), up 9% at 909 (2015: 834).
  • Sales per outlet week including PRS up 4% at 1.06 (2015: 1.02).
  • Housing revenue at £384m up 26% on 2015, reflecting volume growth and both sales price and location mix impacts on open market Average Selling Prices (ASP).
  • Operating profit margin maintained at 19.1% (2015: 19.1%).
  • Basic earnings per share up 25%.
  • Selective land acquisitions ensure pipeline of new sites available to support business growth.
  • Forward sales at mid-June 2016 of £520.8m (2015: £436.4m), 19% ahead of prior year.
  • Interim dividend proposed of 9.1p per share (2015: 6.4p), up 42% in line with our target to reduce dividend cover to 2x by 2017.
  • On target to deliver £1bn of revenue by October 2016 and 4,000 homes and £1.4bn revenue by 2019.

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

“Whilst the debate about the forthcoming referendum on UK membership of the European Union continues to dominate the headlines and the Board notes the risk of business disruption in the event of a vote to leave, purchaser demand for new homes remains strong and Crest Nicholson has delivered a 9% increase in open market completions in the first half of this year. We continue to grow our Private Rented Sector offering and have delivered 173 Private Rented Sector units in the first half, on schemes in Bath, Bristol and Southampton. The business is well positioned to achieve its target of £1bn of revenues in 2016 and to continue growing its contribution to overall housing delivery.”

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


Philip Walters


Caroline Seton       


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

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

Half Year Results 2016

Download the full press release below

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