13th Jun 2024 09:48
(Alliance News) - Crest Nicholson Holdings PLC on Thursday said it swung to a loss in its first half-year despite increased revenue.
Shares in Crest Nicholson were trading 8.1% lower at 221.42 pence each in London on Thursday morning.
The Surrey, England-based housebuilder also announced that former chief executive officer Peter Truscott will step down from its board on Friday, having served since 2019.
New CEO Martyn Clark, previously chief commercial officer at fellow housebuilder Persimmon PLC, assumed the role on Monday last week. Clark's appointment was announced in January, with Truscott agreeing to remain with the firm until the handover process was complete.
Crest Nicholson on Thursday reported a GBP30.9 million pretax loss for the six months to April 30, swung from a GBP28.4 million profit a year before. Its basic loss per share was 9.1 pence, compared with 8.2p.
On an adjusted basis, pretax profit still plummeted 88% to GBP2.6 million from GBP20.9 million. Basic EPS fell 89% to 0.7p from 6.1p.
Revenue decreased 8.9% to GBP257.5 million from GBP282.7 million, as home completions decreased 12% to 788 from 894.
First-half reservations were "in line with expectations", Crest said, with the revenue decline "reflecting the low level of reservations at the beginning of the financial year". Land and commercial sales for the period, however, surged to GBP30.8 million from GBP4.9 million.
The adjusted figures come after accounting for GBP5.9 million of completed sites charges, "also reflecting lower volume and a higher proportion of revenue from low margin sites as the group makes good progress in reducing low margin inventory".
Crest Nicholson declared a 1.00p per share interim dividend, down 82% from the 5.50p it returned for first half of last year.
Going forward, Crest Nicholson said the spring selling season has started well, "with positive housing indicators in an improving macro backdrop", although momentum has softened since Easter.
It expects adjusted pretax profit to be between GBP22 million and GBP29 million for the full year ending October 31, down from GBP41.4 million for financial 2023.
"The imminent general election is creating some short-term uncertainty, but this is anticipated to be alleviated in July once the outcome is known," Crest added.
By Emma Curzon, Alliance News reporter
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