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Annual Results

Crest Nicholson profits up as it hits £1bn sales

24 January 2017 07:37

Crest Nicholson Holdings posts pre-tax profits of £195.0m for the year to the end of October - 27% up on last time - after reaching its sales target of £1bn.

Revenues of £997.0m were 24% higher than the £804.8m achieved in the prior year, primarily driven by increases in open-market housing revenue.

Unit volumes were up 5% at 2,870 (2015: 2,725), with open-market unit completions 7% higher and affordable completions broadly level with 2015.

The group said: "Average selling prices (ASPs) were up 18% year-on-year, reflecting the higher-priced locations and products we had planned in our sales mix.

"The business has successfully transitioned to a higher ASP threshold over the past three years and anticipates future revenue growth to be led by increased unit volumes.

"Land sale revenues of £34.1m (2015: £35.6m) were in line with the prior year, as the business continues to trade parcels of land on our larger sites. Sales of land are routinely made by the business, to fund infrastructure investment and to increase the speed at which housing is delivered."

The total dividend of 27.6p is up 40% and covered 2.25x by earnings (2015: 19.7p and 2.5x cover and the group re-iterated its commitment to 2.0x dividend cover by 2017.

It also said it was on target to deliver £1.4bn sales and 4,000 homes by 2019.

Chief executive Stephen Stone said: "This has been a landmark year for the business.

"In spite of a temporary impact on sales around the time of the vote to leave the European Union, we have achieved sales of £1bn including through joint ventures, in line with our stated target. We remain committed to, and on track to deliver, our targets of 4,000 homes and £1.4bn of sales by 2019.

"The housing market continues to show robust characteristics, underpinned by strong demand for new homes, a benign land market and government policies to improve access to housing.

"Against this backdrop, we are increasing the number of homes built, opening new sites and ensuring that the pipeline of land that fuels our business is progressing steadily through planning.

"As such, Crest Nicholson is confident in its ability to continue growing its business, delivering great homes for customers and strong returns for shareholders."

Story provided by StockMarketWire.com

Related Company: CRST

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