Crest Nicholson Holdings plc Half Year Results 2019

Crest Nicholson Holdings plc (“Crest Nicholson” or the “Company”), a leading residential developer operating in the Southern half of England, today announces its half-year results for the six months ended 30 April 2019.

Highlights

• Revenue £501.9m (HY18: £467.6m*)     +7%
• Sales per outlet week 0.78 (HY18: 0.78)     Maintained
• Current revenue and forward sales for FY19 at £870.1m (HY18: £848.8m**)     +3%
• Total forward sales £625.2m (HY18: £544.4m*)     +15%
• Operating profit margin of 14.1% (HY18: 16.8%*)     -270bps
• Profit before tax of £64.4m (HY18: £72.0m*)     -11%
• Net debt and land creditors lower by £41.3m***     -
• Dividend per share 11.2p (HY18: 11.2p)     Maintained

^{* Results for the six months ended 30 April 2018 have been restated to reflect the adoption of IFRS 15. ** As calculated at 30 April 2018 on pre-IFRS 15 data. IFRS 15 forecasts were not available at this time. *** compared to HY18}

Commenting on today’s statement, Chris Tinker, Interim Chief Executive, said:

“The Group has made good progress on delivering its revised strategy during this period of heightened political uncertainty. Having paused growth and de-risked our open market sales programme through increased pre-sales and partnership working, it is pleasing to report our first half revenues up 7% from this time last year.

Our strategy to reduce forward sales risk through an increased proportion of pre-funded, presold homes has also realised a 15% increase in our total forward sales position. This increased certainty has traded an element of operating margin, which together with generally flat pricing and continuing build cost inflation, has contributed to a reduction in the operating margin.

We enter the second half of the year with encouraging forward sales, a growing outlet base and an increased proportion of homes for sale at more affordable price points. We have also strengthened our operational experience and capacity with a new Chief Operating Officer in post.

Whilst we continue to work our short-term land bank harder, we are pleased that our excellent place-making track record has enabled us to secure four more sites into our strategic and partnership land portfolio, further increasing the medium and long term store of embedded value in our land portfolio.”

Analyst presentation

There will be a presentation to analysts today at 09.00 BST at etc Venues, Bishopsgate Court, 4-12 Norton Folgate, London E1 6DQ hosted by Chris Tinker, Interim Chief Executive and Rod Holdsworth, Interim Group Finance Director.

A listen only conference call will be accessible via the following number for those unable to attend in person:
Dial in: 020 3936 2999
Access code: 699470

Alternatively, you can follow the presentation via a live webcast: https://www.investis-live.com/crest-nicholson/5cdd351622b66b1100635bbf/hyrd

For further information, please contact:

Forward-looking statements

This release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this release and include, but are not limited to, statements regarding the Group's intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial position, liquidity, prospects, growth, strategies and expectations of the industry.  

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements are not guarantees of future performance and the development of the markets and the industry in which the Group operates may differ materially from those described in, or suggested by, any forward-looking statements contained in this release. In addition, even if the development of the markets and the industry in which the Group operates are consistent with the forward-looking statements contained in this release, those developments may not be indicative of developments in subsequent periods. A number of factors could cause developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, commodity prices, changes in law or regulation, changes in its business strategy, political and economic uncertainty.  Save as required by the Listing and Disclosure Guidance and Transparency Rules, the Company is under no obligation to update the information contained in this release. Past performance cannot be relied on as a guide to future performance.