14th Jun 2016 06:26
LONDON (Alliance News) - Crest Nicholson Holdings PLC on Tuesday posted strong growth in profit and revenue for its first half, and hiked its interim dividend by 42%, noting that purchaser demand remains strong despite the disruption caused by the lead-up to next week's UK vote on European Union membership.
The housebuilder posted pretax profit of GBP72.6 million for the six months ended April 30, up 25% from the GBP58.3 million reported for the same period a year earlier, after revenue rose 22% to GBP408.1 million from GBP333.2 million.
This rise came on the back of a 7.0% increase in legal completions to 1,206 from 1,124, as well as an increase in open-market average selling price, up at GBP349,000 from GBP309,000 a year earlier. Sales per outlet week rose to 1.06 from 1.02 previously. This drove up housing revenue 26% to GBP384.0 million.
Crest Nicholson said the number of affordable housing units it sold was lower at 124, compared to the 290 units sold a year earlier, in line with the anticipated phasing of delivery of these units.
Gross margins slipped slightly to 27.1% from 27.6%, reflecting project mix and performance, the company said, although this was offset by a reduction in administrative expenses as a percentage of sales, meaning operating margins were maintained at a "healthy" 19.1% for the first half.
Crest Nicholson said it will pay an interim dividend of 9.1 pence per share, up from the 6.40p offered a year earlier.
The company added that it was on target to deliver GBP1.00 billion per annum revenue by October 2016, along with 4,000 homes, and to deliver GBP1.40 billion per annum in revenue by 2019.
"Whilst the debate about the forthcoming referendum on UK membership of the European Union continues to dominate the headlines and the board notes the risk of business disruption in the event of a vote to leave, purchaser demand for new homes remains strong and Crest Nicholson has delivered a 9.0% increase in open market completions in the first half of this year. We continue to grow our private rented sector offering and have delivered 173 private rented sector units in the first half, on schemes in Bath, Bristol and Southampton," said Chief Executive Stephen Stone.
By Hannah Boland; [email protected]; @Hannaheboland
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