Strong growth in a sustainable housing market
Crest Nicholson Holdings plc (Crest Nicholson) today announces its final results for the year ended 31st October 2014.
Highlights
- On target to achieve revenue growth of 70-80% over 2013 by 2016
- Volume target set at the IPO reached well ahead of schedule with completions up 16% at 2,530 homes (2013: 2,172)
- Open-market average selling prices (ASP) up 15% to £287,000
- Further expansion of operating profit margin to 20.1% (2013: 18.5%*)
- Return on capital employed of 26.0% (2013: 24.1%*) exceeding IPO commitment of 20%
- 3,730 plots added to the short-term land pipeline, across 25 sites; Short-term land pipeline now 6.8 years
- Continued focus on strategic land with 44% of the short term land pipeline strategically sourced
- Forward sales at mid-January of £399.8m (2013: £329.5m), 21% ahead of prior year with 41% of this year’s forecast secured (2013: 51%)
- Intention to move dividend cover towards 2.0x over the next three years reflects strong cash generation as the business moves towards natural scale
* 2013: pre-exceptional costs
Commenting on today’s statement, Stephen Stone, Chief Executive said: “Crest Nicholson enters 2015 in a strong position and we are encouraged by the strong start to the year. Improved access to mortgages and real income growth underpins our confidence in the market and in generating high quality returns. As we grow towards our natural scale, we maintain our Southern focus and commitment to building high quality homes where people want to live.”
| 2014 | 2013 | 2013 | 2013 | Change | ||||||||
| Pre-exceptional | Exceptional costs | Total | (Pre-exceptional) | |||||||||
| £m | £m | £m | £m | £m | % | |||||||
| Units | 2,530 | 2,172 | 2,172 | 358 | +16% | |||||||
|
Revenue |
636.3 | 525.7 | 525.7 | 525.7 | 110.6 | +21% | ||||||
| Cost of sales | (454.3) | (384.5) | (384.5) | (69.8) | ||||||||
| Gross profit | 182.0 | 141.2 | 141.2 | 40.8 | +29% | |||||||
| Administrative expenses | (53.9) | (44.1) | (5.9) | (50.0) | (9.8) | |||||||
|
Operating Profit |
128.1 | 97.1 | (5.9) | 91.2 | 31.0 | +32% | ||||||
| Operating profit % | 20.1% | 18.5% | 17.3% | 160bps | ||||||||
| Profit before tax | 116.7 | 86.8 | (5.9) | 80.9 | 29.9 | +34% | ||||||
|
Profit after tax |
98.8 | 71.5 | (5.5) | 66.0 | 27.3 | +38% | ||||||
| Earnings per share (pence) | ||||||||||||
| - Basic | 39.3p | 29.4p | (2.3)p | 27.1p | 9.9p | +34% | ||||||
| - Diluted | 38.7p | 28.9p | (2.2)p | 26.7p | 9.8p | +34% | ||||||
For further information, please contact:
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Crest Nicholson Holdings plc |
+44 (0) 1932 580555 |
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Stephen Stone
|
|
|
Finsbury |
+44 (0) 20 7251 3801 |
|
Faeth Birch |
There will be a presentation to analysts today at 9.00am at etc Venues, 8 Eastcheap, London EC3M 1AE 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 2014
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