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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Crest Nicholson Holdings Plc | LSE:CRST | London | Ordinary Share | GB00B8VZXT93 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2.60 | 1.03% | 255.60 | 255.40 | 256.20 | 255.60 | 251.00 | 251.00 | 270,996 | 15:21:16 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Construction Machinery & Eq | 657.5M | 17.9M | 0.0697 | 36.73 | 650.01M |
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RNS No 7365n
CREST NICHOLSON PLC
1st July 1997
RESULTS FOR THE SIX MONTHS TO 30th APRIL 1997
* Turnover #152.8m (1996 #132.4m) +15%
* Operating Profit #9.3m (1996 #4.7m) +98%
* Housebuilding Operating Margins increased to 11.5%
(1996 3.8%)
* Profit before taxation up #5.0m to #7.2m
(1996 #2.2m) +226%
* Earnings per ordinary share increased to 3.80p
(1996 0.42p)
* Interim Dividend more than doubled to 1.25p (1996 0.60p)
* Residential Land Bank increased to 4,659 plots (April 1996
3,388 plots, October 1996 3869 plots)
* Gearing 38% (April 1996 48%) and new 5 year #106m Bank
Facility in place
Commenting today John Matthews, Chairman, said:
"Our housebuilding operations are producing outstanding
results.
"This success is reflected in our interim figures and is
continuing through into the second half of our current
financial year. It is the consequence both of an improving
housing market plus, more importantly, the changes that are
being driven through in the operations and marketing of Crest
Homes.
"1997 should continue to be a year of significant progress for
the Group."
A copy of the interim statement, consolidated profit & loss
account, balance sheet and cash flow statement are attached.
Enquiries to:
John Callcutt, Chief Executive John Sunnucks/Philippa Power
Clive Littler, Finance Director Brunswick Group Limited
Crest Nicholson Plc Tel: 0171 404 5959
Tel: 01932 847272
CHAIRMAN'S STATEMENT
RESULTS AND DIVIDEND
The results for the six months to 30th April 1997 represent an
outstanding performance by Crest Homes and demonstrate that the
strategy we have been pursuing in our core housebuilding
business has been successful.
Profit before taxation for the half year is #7.2m (1996 #2.2m)
an increase of #5.0m.
Operating profit, including Associates, is #9.3m (1996 #4.7m)
on a turnover of #152.8m (1996 #132.4m).
Earnings per share have increased to 3.80p compared to 0.42p in
the first half of 1996.
The Board is determined that shareholders should be rewarded as
the Company's performance improves and is, therefore, declaring
an interim dividend of 1.25p per share (1996 0.60p per share)
payable on 1st October 1997 to shareholders on the Register at
the close of business on 5th September 1997.
REVIEW OF OPERATIONS
Residential
The Residential Division made a profit before tax of #8.7m
(1996 #3.2m). This significant improvement is mainly due to
the increase in operating margins on house sales from 3.8% in
the equivalent six months last year to 11.5%.
No sales of residential land were made compared to #5.7m in the
first half of 1996. This is in line with our intention to
retain our strategic land holdings for development.
The housing market has been strong and continues to improve,
particularly in Southern England. Our reservations were over
30% ahead of the first six months of 1996 and were obtained at
prices which have risen throughout the period. This
performance was also influenced by a number of other positive
measures. We were concerned that the market would experience a
downturn both before and after the General Election and decided
to sell ahead of our budgets. In the event the market was
unaffected and the increased reservations have placed us in a
strong sales position for the current year.
We have also benefited by raising the public's awareness of the
Crest Homes' brand in the market place. This has enabled us to
take advantage of the work we have undertaken over the past 18
months to improve the attractiveness of our developments.
Sales of houses amounted to #86.7m (1996 #72.9m) an increase of
19%. The number of houses sold increased to 834 (1996 761) and
their average selling price also increased to #104,000 (1996
#95,800).
Social Housing contributed 70 units and #5.8m sales value.
There will be a considerable increase from sales from this
sector in our second half.
Our success in acquiring new sites, combined with appropriate
pricing and marketing strategies, has enabled Crest to take
full advantage of improved market conditions. High levels of
reservations have been achieved together with useful price
increases.
All Crest Homes' Regions made significant profits. Performance
was particularly commendable in the South East where we
achieved operating margins in excess of 15% on sales modestly
ahead due to a higher average unit value. The Northern region
is in its third year of operation and is continuing to deliver
improved profitability.
Nicholson Estates is now well established and contracts have
been exchanged on 50% of the apartments in its development at
Vincent Square, Westminster.
In common with the rest of the industry, our housing
operations have experienced some delays in obtaining planning
permissions. We have kept these to a minimum by an increased
willingness and ability to meet local planning sensitivities.
Land buying has been particularly successful and 42 sites were
acquired for 1,649 plots at a cost of around #55m. We acquired
significantly more land than we used in the period. Our
current land lead represents over two years' supply. Margins
at the point of acquisition were above those for 1996 but
continue to be augmented by the increase in house prices we are
now experiencing.
Residential strategic land holdings, controlled under option or
conditional contracts, amount to 7,732 plots compared with
5,411 plots at 31st October, mainly due to the addition of 165
acres at Quedgeley adjacent to our existing commercial site.
Total land holdings represent 12,391 plots compared to 9,280
plots at the end of the year.
Property
Property made an operating profit of #0.2m compared to #2.0m in
the same period last year. The reduction was due to fewer
sales of commercial land than in the first half of 1996.
However, we expect turnover to be higher in the second half.
A high interest charge, due to the requirement to continue to
finance historic land holdings, resulted in a loss before
taxation of #0.5m (1996 profit #0.8m).
Eden House, Victoria, was let and further lettings were
achieved in the town centre retail scheme at Chippenham.
Greater occupier and investor interest in the South East,
including the M3 corridor, should encourage prospects for
letting two schemes under construction at Bartley Wood Business
Park at Hook. Agreement has been reached on a number of new
retail opportunities which, provided planning decisions are
successful, give us confidence for an improvement in future
performance.
Construction
The Pearce Group, together with its 50% share of the joint
venture company M+W Pearce Limited, has continued its
improvement and made a profit before taxation of #0.1m compared
with a loss of #0.6m in the first half of last year.
Turnover included a number of projects within the new Retail
and Leisure Divisions which were set up this year to focus on
the needs of specific customers in these sectors. We
anticipate this source of work will substantially increase
turnover in the second half.
M+W Pearce Limited completed the Newport Wafer Fab facility
just after the half year. Margins on work completed increased
further on 1996's level.
Orders obtained by the Pearce Group amounted to #68m compared
to #46m in the equivalent six months in 1996. Large projects
included a distribution centre for Matthew Clarke at Yate and
the second phase of a major office complex for MBNA just
outside Chester.
The business is now performing to our expectation on order
intake and profit margins.
FINANCE
Capital and reserves at 30th April 1997 were #134.4m compared
with #129.4m at the same time a year ago.
Net assets per ordinary share have increased to 96p compared
with 92p at 30th April 1996.
Net borrowings of #51.6m (April 1996 #62.5m) represent gearing
of 38% (April 1996 48%).
The outflow of cash normally experienced in the first half was
lower than expected due to the improved performance of our
Residential Division. Average borrowings in the six months
were #51.8m compared with #64.5m over the same period in 1996.
We have arranged a #106m Revolving Credit Facility for a term
of five years to 2002 which replaces a #90m facility due to
expire in April 1998. With total Bank facilities of #116.9m
and the improving returns which are increasing shareholders
funds, we have adequate resources to expand our core
residential business.
PROSPECTS
In April, at our Annual General Meeting, I commented that our
housing operations were producing outstanding results.
This success is reflected in our interim figures and is
continuing through into the second half of our current
financial year. It is the consequence both of an improving
housing market plus, more importantly, the changes that are
being driven through in the operations and marketing of Crest
Homes.
Both our Property and our Construction activities are following
strategies which limit risk and are cash positive.
We have some concern that, if measures adopted to curb
inflation prove excessive or highly selective on housing, then
the current market may deteriorate. However, the strategy that
Crest has put in place should ensure that the business
continues to prosper in a stable market with modest house price
inflation. Our increased land holdings should also allow us to
increase our volumes in such a market.
In conclusion, therefore, 1997 should continue to be a year of
significant progress for the Group.
STATEMENT OF RESULTS
Unaudited Group results for the Half Year to 30th April 1997
Half Half Full
Year Year Year
Note 1997 1996 1996
#000 #000 #000
2 Turnover - including 152,791 132,389 332,270
Associates
Less: attributable to (13,455) (2,010) (10,336)
Associates
_______ _______ ________
Turnover - Group
companies 139,336 130,379 321,934
======= ======= ========
2 Operating profit - Group 8,778 4,517 14,571
companies
Operating profit of 524 173 592
Associates
_______ _______ ________
Operating profit - 9,302 4,690 15,163
including Associates
Net interest payable (2,088) (2,478) (5,120)
_______ _______ ________
2 Profit before taxation 7,214 2,212 10,043
3 Estimated taxation (2,380) (730) (3,218)
_______ _______ ________
Profit after taxation 4,834 1,482 6,825
Preference dividends (1,063) (1,063) (2,126)
_______ _______ ________
Profit attributable to
ordinary shareholders 3,771 419 4,699
Ordinary dividends (1,240) (594) (2,479)
_______ _______ ________
Retained profit/(loss) 2,531 (175) 2,220
======= ======= ========
4 Earnings per 10p ordinary 3.80p 0.42p 4.74p
share
Dividends per 10p 1.25p 0.60p 2.50p
ordinary share
There are no recognised gains or losses other than those shown
above.
SUMMARY BALANCE SHEET
Unaudited Consolidated Balance Sheet as at 30th April 1997
April April October
Note 1997 1996 1996
#000 #000 #000
Fixed assets
Tangible assets 2,891 2,547 2,615
Investments 906 150 444
________ ________ ________
3,797 2,697 3,059
________ ________ ________
Current
assets/liabilities
Investments 4,457 5,767 4,492
Stocks 204,371 192,484 180,029
Debtors 71,138 68,627 90,853
Creditors (95,158) (76,907) (97,210)
Net cash in hand 16,404 8,461 17,067
________ ________ ________
Net current assets 201,212 198,432 195,231
________ ________ ________
Total assets less 205,009 201,129 198,290
current liabilities
Creditors falling due
after more
than one year
Bank loan (68,000) (71,000) (64,000)
Other creditors and (2,651) (718) (2,474)
provisions
________ ________ ________
134,358 129,411 131,816
======== ======== ========
5 Shareholders' funds 134,358 129,411 131,816
======== ======== ========
Net borrowings 51,596 62,539 46,933
Gearing 38% 48% 36%
6 Net assets per ordinary 96p 92p 94p
share
SUMMARY CASH FLOW STATEMENT
Unaudited Consolidated Cash Flow Statement for the Half Year to
30th April 1997
Half Half Full
Year Year Year
1997 1996 1996
#000 #000 #000
Net cash inflow/(outflow) from 1,426 (1,606) 19,953
operating activities
Returns on investments and
servicing of finance
Interest received 338 1,215 1,520
Interest paid (2,802) (3,323) (6,369)
Preference dividends paid (1,063) (1,063) (2,126)
_______ ________ ________
(3,527) (3,171) (6,975)
_______ ________ ________
Taxation paid (296) (268) (1,534)
Capital expenditure (543) (343) (641)
Acquisitions and disposals 150 (150) (150)
Equity dividends paid (1,884) (1,387) (1,982)
_______ ________ ________
Net cash flow before financing (4,674) (6,925) 8,671
Financing
Share issues 11 39 49
Increase/(decrease) in bank loan 4,000 (6,000) (13,000)
_______ ________ ________
4,011 (5,961) (12,951)
_______ ________ ________
Decrease in cash (663) (12,886) (4,280)
======= ======== ========
NOTES
1 Basis of presentation
The summarised half year financial information is unaudited
and does not constitute full accounts. The accounting
policies are as stated in the last Annual Report.
The figures for 31st October 1996 are not the Company's
statutory accounts but the information has been extracted
from statutory accounts which have been reported on by the
auditors and filed with the Registrar of Companies. The
report of the auditors was unqualified and did not contain a
statement under Section 237(2) or (4) of the Companies Act
1985.
2 Segmental analysis
Half Half Full
Year Year Year
1997 1996 1996
#000 #000 #000
Turnover
Residential 87,564 78,598 192,205
Property 8,710 9,964 22,757
Construction 56,413 43,715 117,093
Unallocated central revenue 104 112 215
_______ _______ ______
152,791 132,389 332,270
0
======= ======= ======
Operating profit/(loss)
Residential 10,016 4,517 15,777
Property 214 1,970 1,460
Construction (168) (961) 3
Unallocated central costs and
revenue (760) (836) (2,077)
_______ _______ ______
9,302 4,690 15,163
======= ======= ======
Pre-tax profit/(loss)
Residential 8,706 3,239 13,192
Property (543) 815 (827)
Construction 89 (636) 631
Unallocated central costs and (1,038) (1,206) (2,953)
revenue
_______ _______ ______
7,214 2,212 10,043
======= ======= ======
3 Taxation
Half Half Full
Year Year Year
1997 1996 1996
#000 #000 #000
Corporation tax charge at 33% (2,380) (730) (3,080)
Deferred tax at 33% - - (210)
Adjustments in respect of prior - - 275
years
Associated undertaking - - (203)
________ ______ _______
(2,380) (730) (3,218)
======== ====== =======
4 Earnings per share
Earnings per share is calculated on the profit attributable
to ordinary shareholders of #3,771,000 (1996 #419,000) on an
average of 99,192,220 (1996 99,098,692) ordinary shares in
issue during the six months.
5 Reconciliation of shareholders' funds
Half Half Full
Year Year Year
1997 1996 1996
#000 #000 #000
Retained profit/(loss) 2,531 (175) 2,220
Net proceeds from share issues 11 39 49
_______ _______ ______
Net increase/(decrease) in 2,542 (136) 2,269
shareholders' funds
Opening shareholders' funds 131,816 129,547 129,547
_______ _______ _______
Closing shareholders' funds 134,358 129,411 131,816
======= ======= =======
6 Net assets per share
Net assets per ordinary share is calculated on net assets of
#95,695,000 (1996 #90,745,000) after deducting the preference
capital of #38,663,000 (1996 #38,666,000) from the capital
and reserves, on 99,208,536 (1996 99,149,637) ordinary shares
in issue at 30th April 1997.
7 Interim Statement
The Interim Statement for the half year will be sent to all
shareholders and copies will also be available from Crest
House, 39 Thames Street, Weybridge, Surrey KT13 8JL, the
Company's Registered Office.
END
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