14th Jun 2022 10:09
(Alliance News) - Crest Nicholson Holdings PLC shares rose on Tuesday after the firm lifted its payout on a healthy jump in interim revenue, though a cladding provision hit its bottom line.
Crest Nicholson shares were trading 8.4% higher at 276.40 pence each in London on Tuesday morning.
The Surrey-based housebuilder swung to a pretax loss of GBP52.5 million in the six months ended April 30 from a profit of GBP36.3 million in the same period a year before.
The FTSE 250 firm blamed this on an exceptional charge of GBP105.0 million, related to the government's Building Safety Pledge. The pledge addresses the issue of dangerously flammable cladding and ensures that housebuilders fix life-critical fire safety issues.
However, adjusted pretax profit jumped 45% to GBP52.5 million from GBP36.1 million.
This was on revenue that rose 12% to GBP364.3 million from GBP324.5 million, reflecting the "underlying strength" of the UK housing market and strong customer demand across all regions.
Crest Nicholson declared an interim dividend of 5.5 pence, reflecting a 34% increase year-on-year from 4.1p.
Looking ahead, the company said it is convinced it has a "unique opportunity" to deliver superior returns.
It now expects full-year adjusted profit before tax to be around GBP135 million to GBP140 million, up 26% to 31% from GBP107.2 million in financial 2021.
"Despite the unpredictable global, economic and political outlook, we remain optimistic about the fundamentals of the UK housing market and are confident in the skill and determination of Crest Nicholson colleagues to manage and adapt to these challenges," Chief Executive Peter Truscott commented.
By Abby Amoakuh; [email protected]
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