12th Jun 2018 09:03
LONDON (Alliance News) - FTSE 250-listed residential developer Crest Nicholson Holdings PLC said Tuesday its half-year profit dipped in the first half of its financial year, with a fall in margins due to flat pricing amid build cost inflation.
For the half-year to April 30, the company posted revenue of GBP473.8 million versus GBP419.7 million in the same period last year.
"The group has delivered strong growth in housing revenues and housing unit numbers, with open-market revenue up 16% and the number of private homes delivered up 11%," Chief Executive Officer Patrick Bergin said.
However, pretax profit decreased 2% to GBP74.8 million from GBP76.2 million year-on-year as the residential developer experienced higher financing costs due to investment in new sites.
Shares in the residential developer were trading 5.8% lower at 420.50 pence.
Open-market average selling prices increased 5% year-on-year to GBP439,000 from GBP418,000.
Headline gross margins for the period were at 23.6%, down from 26.3% the prior year due to flat pricing amid a backdrop of build cost inflation at 3% to 4%.T
Crest Nicholson said it expects operating margins for the full year at around 18%, lower compared to last year at 20.3%. his is at the bottom range of Crest Nicholson's guidance range.
Revenue growth for the year is expected to be "over" 15%.
The company issued an interim dividend of 11.2p per share, which represent approximately one third of the final dividend to be issued for the year, the company said.
The company said that strong levels on employability, low interest rates and good mortgage access are helping new home purchases and it expects to continue to deliver a strong "operational and financial performance in the medium term".
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