Crest Micholson was stock market listed from 1968 to 2007 when it fell victim to the housing crash and was taken over by HBOS and Scottish entrepreneur Sir Tom Hunter. Saddled by debts, it was then taken over by its lending banks in 2009. Hedge fund Varde bought HBOS’s 30% stake in the business from Lloyds in 2010 and by mid-2011 had built up an 80% stake.
Crest Nicholson chief executive Stephen Stone said: "Crest Nicholson has a long and successful history as a public company and today we have announced our intention to return to the stock market. We have a robust balance sheet, a valuable land bank, and a management team that has experienced the best and worst of the housebuilding cycle. The housing market is entering a period of gradual recovery and with our emphasis on the south of England, including London, and the continued support for the new homes market from government, we are well positioned to generate value for shareholders."
Crest Nicholson has also reported its results for the year to 31 October 2012, which show a 30% leap in operating profit to £73.3m. Last year’s pre-tax loss of £27m has become a profit of £62.1m this time.
Housing legal completions were up 24% over the year at 1,882 (2011: 1,520). Turnover was £408m (2011: £319.1m).
The estimated gross development value of the land bank stands as £6.8bn.
Mr Stone said of the financial results: "This has been a very good year for Crest Nicholson, driven by a 24% increase in housing legal completions in the year. This growth reflects both stronger rates of sale and our rising number of sales outlets. Recently we have seen an encouraging pick-up in mortgage lending although lending volumes do still remain constrained. As the group approaches its 50th anniversary in 2013, it remains on a trajectory of steady growth based on strong results and underlying business performance."
Crest Nicholson: a brief history
1963 Crest Homes founded
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1968 Floated on the London Stock Exchange
1972 Crest Nicholson fomred through merger with Camper & Nicholsons
2007 Acquired by HBOS and West Coast Capital for £715m
2009 Debt restructured and syndicate lenders take ownership
2011 Further restructuring and Varde/Deutsche Bank become majority owners
2013 Announces IPO
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