Crest Nicholson Holdings plc Annual Results Announcement for the year ended 31st October 2018

Crest Nicholson Holdings plc (Crest Nicholson) today announces its final results for the year ended 31st October 2018.

Highlights

• Sales, including those from joint ventures, of £1,136.6m (2017: £1,065.6m) – up 7%
• Statutory revenue of £1,136.1m (2017: £1,043.2m) up 9%
• Volumes up 3% at 3,020 homes (2017: 2,935)
• Pre-tax profit down 15% to £176.4m (2017: £207.0m)
• Operating profit margin of 16.7% (2017: 20.3%)
• Net cash at year-end of £14.1m (2017: £33.2m)
• Gross development value of land pipelines up 3% to £12,083m (2017: £11,736m)
• Forward sales at mid-January of £639.4m (2017: £575.7m), 11% ahead of prior
• Outlets increased 8% to 55 (2017: 51)
• Total dividend maintained at 33.0p, covered 1.7x by earnings (2017: 33.0p and 2.0x cover)

Commenting on today’s statement, Patrick Bergin, Chief Executive said: “The business has had a good year operationally, with an increase in the number of new homes delivered. However, we have faced some challenges in London and with sales at higher price points where political and economic uncertainty has adversely impacted customer demand and this is likely to continue pending Brexit resolution.

Our forward sales are strong, boosted by our strategic partnerships and our new channels to market. Pricing is stable, build cost inflation has moderated and we have implemented plans to mitigate margin pressure, which will take effect progressively over the next few years.

Our revised business strategy and focus on cash generation underpins our confidence in generating sustainable shareholder returns.”

Analyst webcast

There will be a presentation to analysts today at 9.00am at ETC venues, Bishopsgate Court, 4-12 Norton Folgate, London E1 6DQ hosted by Stephen Stone, Executive Chairman and Patrick Bergin, Chief Executive.

The presentation will also be available live to analysts and shareholders, and as a replay via the following link:
https://www.investis-live.com/crest-nicholson/5c45b217186fe71000b4ead1/ffge

A conference call facility is available for Q&A. The details are as follows:
UK: 020 3936 2999
All other locations: +44 20 3936 2999
Access code: 904650

A telephone replay will be available until 5th February 2019:
UK: 020 3936 3001
USA: 1 845 709 8569
All other locations: +44 20 3936 3001
Access code: 126745

For further information, please contact:

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

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.