24th Jun 2021 10:31
(Alliance News) - Crest Nicholson Holdings PLC on Thursday declared an interim dividend as it swung back to profit and lifted its full-year outlook.
Shares in the housebuilder were trading 3.4% higher at 455.00 pence each in London on Thursday morning.
For the six months to April 30, the housebuilder swung to pretax profit of GBP36.3 million, compared to a GBP51.2 million pretax loss in the same period the year before.
The Surrey, England-based firm said revenue in its first half increased to GBP324.5 million, up 35% from GBP240.0 million year-on-year.
Home completions in the first half increased to 1,017, compared to 775 a year ago.
"Market conditions have been favourable and consistent, supported by the government's decision to suspend stamp duty and to allow the sector to remain open during periods of Covid-19 restrictions," the company said, noting its exceeded its interim profit expectations.
Since the start of 2021, demand has "steadily increased" with sales rates at their strongest in March and April.
"Reassuringly, we are seeing strong demand for homes scheduled to complete beyond the 30 September 2021 stamp duty deadline," it added.
Given the strong first half and confident the housing market will remain "robust", Crest lifted its full-year profit outlook. It now expects full-year adjusted pretax profit to be at least GBP100.0 million, which would be more than double the GBP45.9 million reported for the 2020 financial year.
Adjusted pretax profit for the first half was GBP36.1 million, surging from GBP4.5 million a year ago.
Chief Executive Peter Truscott said: "I am very pleased with the strong trading performance the Group has delivered in the first half...Having completed the first part of our turnaround strategy, and implemented our operational efficiency programme, our focus now moves to rebuilding operating margins and delivering sustainable growth.
"We are evaluating options to enter new geographical markets and look forward to outlining these future growth plans and our long-term financial targets later this year."
The FTSE 250-listed company reinstated its dividend, declaring an interim payout of 4.1p, "reflecting confidence in outlook". The company declared no dividend for financial 2020, compared to 11.2p the year before.
By Scarlett Butler; [email protected]
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