TIDMCRST
RNS Number : 1872F
Crest Nicholson Holdings PLC
16 May 2017
Crest Nicholson Holdings Plc
Trading Update
Crest Nicholson Holdings Plc (Crest Nicholson) today issues a
trading update in respect of the six months ended 30 April 2017,
ahead of its half year results announcement on 13 June 2017.
Positioned for Growth
Current trading
Trading continues to be in line with expectations and the Group
remains on track to deliver growth in unit sales and c. 10% in
revenues for the full year to 31 October 2017.
Average Selling Prices (ASPs) have risen as the Group has
delivered on its strategy of investing in high quality locations.
Open market completion ASPs in the first six months, excluding PRS,
were 12% higher at GBP418k (2016: GBP372k).
The change in product and location mix towards higher ASPs also
results in the business naturally operating at a lower sales rate
per outlet. Sales per outlet week, excluding PRS, averaged 0.81
(2016: 0.87) which is in line with the average sales rate achieved
through the whole of 2016.
As expected, unit completions for the first half of the 2017
financial year at 1,064 (2016: 1,206) are lower than the
comparative period in 2016, primarily due to a reduced first half
weighting from the timing of PRS completions. Unit completions
excluding the impact of PRS were 1,021 (2016: 1,033), broadly in
line with last year.
At the end of April, forward sales for the 2017 year including
year to date completions are 5% ahead of the same period last
year.
Forward sales have been supported by an increase in outlet
numbers which averaged 49 for the first half of 2017 (2016: 44) an
increase of 11%. The second half of 2017 will see the new Division
in the Midlands established and additional outlets opened across
the existing Divisions.
The Group has continued its disciplined approach to land
acquisitions, in what is still a benign market. In the first half
of 2017, the business has more than replaced housing revenues
purchasing 1,092 plots across 11 sites with a gross development
value of GBP418m, maintaining a broad land pipeline for the
future.
A further 1,196 plots across two sites were converted from the
Strategic land pipeline in the period, after relevant resolutions
to grant planning consent were secured. The Strategic pipeline has
in turn been replenished with an additional 1,101 plots.
Stephen Stone, Chief Executive commented "Having delivered on
our stretching 2016 target of GBP1bn sales, the business has taken
the first steps to establish a new division in the Midlands, is
building momentum in forward sales for the year and pursuing the
disciplined expansion of the Group's land pipeline for the future.
Crest Nicholson has the solid foundations for another year of
growth and remains firmly on track to meet our ambitious 2019
targets of GBP1.4bn sales and 4,000 units."
Leasehold Sales
There has been some public comment on leasehold sales in recent
months. It is the Group's general approach to sell houses on a
freehold basis and, as a result, very few leasehold houses have
been sold. We continually review the terms of ground rents for the
sale of all leasehold properties and we do not believe that they
constitute a material exposure for the Group.
Outlook
The housing market continues to be robust across the Group's
principal operating areas. The market is underpinned by strong
demand with good mortgage access and support from the Help to Buy
Scheme. Moderate sales inflation should help to maintain
affordability in the near term and combined with moderate build
cost inflation should help underpin margins.
Addressing production capacity, clearance of planning conditions
and the shortage of skilled labour continue to be the key areas of
focus for the sector in terms of securing volume delivery and
growth.
Against this market backdrop the Board remains confident that
the business is well positioned to continue to deliver a strong
operational and financial performance in the medium term.
There will be a conference call for analysts at 8.30am, hosted
by Stephen Stone, Chief Executive, and Patrick Bergin, Chief
Operating Officer, and Robert Allen, Finance Director. The dial-in
details are:
Dial-in: +44 (0) 20 3003 2666
Title: Crest Nicholson Trading Update
Password: Crest Nicholson
For further information please contact:
Crest Nicholson Holdings
plc +44 (0) 1932 580555
Stephen Stone
Patrick Bergin
Robert Allen
+44 (0) 20 7251
Finsbury 3801
Faeth Birch
James Bradley
Philip Walters
Forward-looking statements
This release may include statements that are, or may be deemed
to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates", "plans",
"projects", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or
comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These
forward-looking statements include all matters that are not
historical facts. They appear in a number of places throughout this
release and include, but are not limited to, statements regarding
the Group's intentions, beliefs or current expectations concerning,
among other things, the Group's results of operations, financial
position, liquidity, prospects, growth, strategies and expectations
of the industry.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Forward-looking statements are not guarantees of future performance
and the development of the markets and the industry in which the
Group operates may differ materially from those described in, or
suggested by, any forward-looking statements contained in this
release. In addition, even if the development of the markets and
the industry in which the Group operates are consistent with the
forward-looking statements contained in this release, those
developments may not be indicative of developments in subsequent
periods. A number of factors could cause developments to differ
materially from those expressed or implied by the forward-looking
statements including, without limitation, general economic and
business conditions, industry trends, competition, commodity
prices, changes in law or regulation, changes in its business
strategy, political and economic uncertainty. Save as required by
the Listing and Disclosure Guidance and Transparency Rules, the
Company is under no obligation to update the information contained
in this release.
Past performance cannot be relied on as a guide to future
performance.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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