Crest Nicholson meets guidance as profits fall 15% on Brexit uncertainty

Writer, Stock Market Wire
Tuesday, January 29, 2019 - 07:52

House-builder Crest Nicholson's annual profits fell in-line with previous downgraded guidance even as Brexit uncertainty kept a lid on sales in London.

For the year ended 31 October, pre-tax profit fell 15% to £176.4m within previously guidance of between £170m and £190m. Reported revenue rose 9% to £1.14bn.

Gross margins for the year were lower at 22.4% compared with 26.4% a year ago, as pricing softness and additional costs in London weighed.

The house-builder delivered 3,020 new homes in 2018, up 3% from a year ago, achieving an average selling price of £393,000 on open market sales.

Slower-than-expected sales in the second half were mitigated somewhat by acceleration in bulk sales to registered providers and private rented sector investors, selecting land sales on long tail sites and adjusting build programmes, the company said.

The total dividend growth was flat at 33.0p a share.

'We have faced some challenges in London and with sales at higher price points where political and economic uncertainty has adversely impacted customer demand and this is likely to continue pending Brexit resolution,' the company said.

'Our forward sales are strong, boosted by our strategic partnerships and our new channels to market. Pricing is stable, build cost inflation has moderated and we have implemented plans to mitigate margin pressure, which will take effect progressively over the next few years.'


Related content

Broker Forecast - Jefferies International issues a broker note on Crest Nicholson Holdings Plc

Jefferies International today reaffirms its hold investment rating on Crest Nicholson Holdings Plc (LON:CRST) and raised its price target to 407p (from 396p).

Broker Forecasts...

Fri, 27/09/2019 - 11:00


Crest Nicholson appoints Iain Ferguson as chairman

Crest Nicholson said that Iain Ferguson had been appointed as chairman following an 'extensive' search process.

Ferguson would join the board on 16 Sep as...

Wed, 11/09/2019 - 07:50


Broker Forecast - Deutsche Bank issues a broker note on Crest Nicholson Holdings Plc

Deutsche Bank today initiates coverage of Crest Nicholson Holdings Plc (LON:CRST) with a hold investment rating and price target of 371p.

Broker Forecasts data provided...

Wed, 04/09/2019 - 08:50


Reckitt and Indivior soar on US settlement and shares in housebuilders lifted by property market data

“UK and Asian stocks followed the upwards trend seen last night in the US after the Fed signalled an interest rate cut. The FTSE 100...

Thu, 11/07/2019 - 11:20


Investors line up to buy cut-price stock from suspended Woodford fund

The number of deals involving stocks being bought by third party investors from the troubled Woodford Equity Income Fund (BLRZQ73) is picking up pace.

Dealing...

Thu, 27/06/2019 - 00:00