On the back of a revived housing market, Crest Nicholson’s forward sales at mid-January are £329.5m, compared to £218.7m this time last year.
Reporting its financial results for the year to 31 October 2013, the company saw a 29% leap in pre-tax profits last year from £62.1m in 2012 to £80.9m this time. Excluding exceptional items, profit growth was 40%.
Revenue was also up 29% to £525.7m (2012: £408.0m).
This time last year Crest Nicholson was a private company. It returned to the Stock Exchange in February 2013. Since then it has seen its share price rise from the IPO opening price of 220p to a peak of 400p earlier this month. Last night's closing price was 359p.
Chief executive Stephen Stone said: "These are an excellent set of results, which cap an exciting year for Crest Nicholson, in which the business returned to the public markets. Our extensive land bank has enabled us to deliver strong growth in volumes, bringing many more families into home ownership, whilst continuing to drive good returns for our investors. We are pleased to mark our return as a listed company by declaring a final dividend.”
He continued: “Government initiatives to assist purchasers in buying a new home have undoubtedly stimulated activity in the industry and we are playing our part by increasing production where possible. Private home completions were up 35% over the year and we took almost 600 reservations under the 'Help to Buy' scheme. Improving sentiment in the housing market and beyond along with an excellent pipeline of future projects across the southern half of England gives the bard great confidence in the outlook for the business."
Chairman William Rucker added: “We have made a strong start to the 2014 financial year, following what was an excellent 2013 for Crest Nicholson. Our forward sales for current and future years at mid-January were 51% ahead of the prior year, with 51% of this year's forecast secured (2012: 45%).
“Average selling prices will show further increases this year, driven significantly by product mix, although sales price gains are also being achieved and are helping to sustain margins in a competitive build cost environment.
“The land market continues to yield opportunities and the long land bank that the business enjoys positions us well to select sites for purchase that meet our hurdle rates.
“As consumer sentiment and credit availability have improved, constraints on growth are increasingly determined by the supply chain, the shelf-life of mortgage offers and the planning process. Nonetheless, the trading environment is healthy and we look forward to continuing to deliver in 2014.”
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