28th Jan 2020 08:20
(Alliance News) - Crest Nicholson Holdings PLC on Tuesday maintained its dividend payment despite posting a 39% year-on-year drop in profit for financial 2019 amid lower home completions.
The FTSE 250-listed housebuilder also laid out new three-year financial targets to financial 2022 and said that Deputy Chair Leslie Van de Walle will not stand for re-election at the company's annual meeting on March 24. Octavia Morley, a non-executive director, has been appointed as senior independent director effective from the annual meeting.
Crest Nicholson shares were up 1.1% at 445.00 pence each in London on Tuesday morning.
For the year ended October 31, the company's pretax profit slumped to GBP102.7 million from GBP168.7 million in financial 2018, and revenue slipped 3% to GBP1.08 billion from GBP1.12 billion. Home completions fell 4% to 2,912 units from 3,048.
The company maintained its full-year dividend at 33.0p per share.
Crest said it remains confident in its ability to deliver on previous guidance and reiterated expectations for financial 2020 adjusted pretax profit in a range of GBP110 million to GBP120 million. Adjusted pretax profit in financial 2019 was GBP121.1 million.
The Chertsey, Surrey-based company also hopes to increase home completions to 3,500 units from current 2,912 in the three years to financial 2020. Adjusted operating profit margin is predicted to improve by a minimum of 250 basis points from 12.2% in financial 2019.
The company intends to maintain 33.0p dividend in financial 2020 and then increase it in line with Retail Price Index from Financial 2021.
"We believe the decisive political outcome should provide support for the sector in the near term. While it is too early to form a view on the impact for 2020 trading we are seeing some encouraging signs. Footfall and visitor numbers on our developments have increased and traffic on our website is up," said Chief Executive Officer Peter Truscott.
By Tapan Panchal; [email protected]
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