REG - Crest Nicholson Hdgs - Final Results <Origin Href="QuoteRef">CRST.L</Origin> - Part 3
24/01/2018 07:05
- Part 3: For the preceding part double click ID:nRSX7240Cb
- (1.6) 1.7 - - 0.1
Subsidiary acquired in the year - - - - (0.1) (0.1)
At 31st October 2016 10.1 1.3 3.1 - 0.7 15.2
Income statement movements (2.7) 0.1 - - (0.2) (2.8)
Equity movements - 0.5 (1.8) - - (1.3)
At 31st October 2017 7.4 1.9 1.3 - 0.5 11.1
Deferred tax expected to be recovered or settled in less than 12 months is £4.4m (2016: £4.6m), and in more than 12 months
is £6.7m (2016: £10.6m).
At the consolidated statement of financial position date the substantively enacted future corporation tax rates were 19%
for FY18 to FY19 and 17% beyond. The deferred tax assets have been evaluated at the rates at which they are expected to
reverse based on current forecasts (accounting period ends: 31st October 2018: 19%, 31st October 2019: 19%, 31st October
2020: 17.83% and 31st October 2021 and subsequent: 17%). The Group has no material unrecognised deferred tax assets.
Inventories fair value represents temporary differences on the carrying value of inventory fair valued on the acquisition
of Castle Bidco plc in 2009. These temporary differences are expected to be recoverable in full as it is considered
probable that taxable profits will be available against which the deductible temporary differences can be utilised. They
are therefore recognised as deferred tax assets in the above amounts.
14 INVENTORIES
2017 2016
£m £m
Land and work in progress 950.3 843.4
Completed buildings including show homes 136.2 92.4
1,086.5 935.8
Included within inventories is a fair value provision of £35.3m (2016: £47.6m) which arose on the acquisition of Castle
Bidco plc in 2009 and will unwind to cost of sales in future years as the units against which the original fair value
provision was recognised are sold. The amount of fair value provision unwound in cost of sales in the year was £12.3m
(2016: £19.3m). Inventories of £470.1m (2016: £368.4m) are estimated to be recovered in more than 12 months. Inventories of
£768.8m (2016: £717.7m) were recognised as cost of sales in the year.
15 TRADE AND OTHER RECEIVABLES
2017 2016
£m £m
Non-current
Trade receivables 14.5 14.9
Due from joint ventures 38.0 39.4
52.5 54.3
Current
Trade receivables 64.0 29.2
Recoverable on contracts 20.4 21.0
Due from joint ventures 1.2 15.4
Other receivables 13.2 4.8
Prepayments and accrued income 3.9 4.0
102.7 74.4
Current trade receivables of £13.4m have been collected since year end (2016: £8.0m). The remaining balance is due
according to contractual terms. Receivables are stated after provision for doubtful debts of £nil (2016: £nil). Amounts due
from joint ventures are net of joint venture losses of £2.1m (2016: £1.1m). At the consolidated statement of financial
position date the difference between the fair value of non-current amounts due from joint ventures and nominal value is
£0.7m (2016: £nil).
The Group considers the credit quality of financial assets that are neither past due nor impaired as good. Trade and other
receivables mainly comprise contractual amounts due from housing associations and land sales to other quoted housebuilders.
Amounts due from joint ventures comprise funding provided on two (2016: three) joint venture developments which are being
project managed by the Group and are subject to contractual arrangements.
The maturity of non-current receivables is as follows:
2017 2016
£m £m
Due between one and two years 20.9 12.5
Due between two and five years 31.4 41.6
Due after five years 0.2 0.2
52.5 54.3
16 INTEREST-BEARING LOANS AND BORROWINGS
2017 2016
£m £m
Non-current
Revolving credit facility 40.0 200.0
Senior loan notes 100.0 -
Revolving credit and Senior loan notes issue costs (3.7) (2.2)
Other loans 3.8 5.6
140.1 203.4
Current
Other loans 1.9 1.9
There were undrawn amounts of £210.0m (2016: £40.0m) under the revolving credit facility at the consolidated statement of
financial position date. During the year the Group completed a £100m private placement of 7 to12 year Senior loan notes at
a weighted average fixed interest rate of 3.53%. Interest is paid biannually in arrears. See Note 20 for additional
disclosures.
17 TRADE AND OTHER PAYABLES
2017 2016
£m £m
Non-current
Land payables on contractual terms 86.7 98.7
Other payables 6.4 7.2
Accruals 8.4 5.4
101.5 111.3
Current
Land payables on contractual terms 128.9 86.3
Other trade payables 42.5 37.8
Payments on account 16.5 26.3
Taxes and social security costs 2.3 2.3
Other payables 12.7 12.6
Accruals 185.0 172.3
387.9 337.6
18 PROVISIONS
2017 2016
Rental and other obligations in respect of commercial properties £m £m
At beginning of the year 4.4 5.2
Utilised in the year (0.9) (0.8)
At end of the year 3.5 4.4
Of which:
Non-current 2.1 3.6
Current 1.4 0.8
3.5 4.4
The rental and other obligations in respect of commercial properties provision covers the shortfall on commercial head
leases, rates and related service charges for the years the Group anticipates the leases being onerous. The Group has head
leases expiring up to September 2020.
19 SHARE CAPITAL
Shares issued Nominal value Share capital Share premium account
Number Pence £ £
Ordinary shares as at 1st November 2015 251,661,200 5 12,583,060 71,660,903
New share capital 2,702,373 5 135,119 1,349,439
Ordinary shares as at 31st October 2016 254,363,573 5 12,718,179 73,010,342
New share capital 1,396,064 5 69,802 1,119,136
Ordinary shares as at 31st October 2017 255,759,637 5 12,787,981 74,129,478
Ordinary shares are issued and fully paid. Authorised ordinary shares of 5 pence each are 339,187,373 (2016: 335,549,777).
During the year the Company issued the following new ordinary shares of 5 pence each to satisfy share options under the
Company's share incentive schemes.
Shares issued Exercise price Share capital Share premium account
Number Pence £ £
2014 LTIP 933,342 - 46,667 -
2013 SAYE 34,751 247 1,737 84,097
2014 SAYE 377,761 276 18,888 1,023,732
2015 SAYE 531 451 26 2,368
2016 SAYE 3,181 286 159 8,939
2016 Deferred bonus plan 46,498 - 2,325 -
1,396,064 69,802 1,119,136
During the previous year the Company issued the following new ordinary shares of 5 pence each to satisfy share options
under the Company's share incentive schemes.
Shares issued Exercise price Share capital Share premium account
Number Pence £ £
2013 LTIP 1,966,142 - 98,307 -
2014 LTIP 43,176 - 2,159 -
2015 LTIP 17,197 - 860 -
2013 SAYE 554,982 247 27,749 1,343,057
2014 SAYE 2,355 276 118 6,382
2014 Deferred bonus plan 117,448 - 5,872 -
2015 Deferred bonus plan 1,073 - 54 -
2,702,373 135,119 1,349,439
For details of outstanding share options at 31st October 2017 see Note 21.
20 FINANCIAL RISK MANAGEMENT
The Group's financial instruments comprise cash, bank loans, senior loan notes, trade receivables, other financial assets
and trade payables. The main objective of the Group's policy towards financial instruments is to maximise returns on the
Group's cash balances, manage the Group's working capital requirements and finance the Group's ongoing operations. During
the year the Group completed a £100m private placement of 7 to 12 year Senior loan notes at a weighted average fixed
interest rate of 3.53%. Interest is paid biannually in arrears.
Capital management
The Group's policies seek to match long-term assets with long-term finance and ensure that there is sufficient working
capital to meet the Group's commitments as they fall due, comply with the loan covenants and continue to sustain trading.
The Group's capital comprises shareholders' funds and net borrowings.
The Group seeks to manage its capital through control of expenditure, dividend payments and through its banking
facilities.
The revolving credit facility and senior loan notes imposes certain minimum capital requirements on the Group. These
requirements are integrated into the Group's internal forecasting process and are regularly reviewed. The Group has, and is
forecasting, to operate within these capital requirements.
Financial risk
The main risks associated with the Group's financial instruments are credit risk, liquidity risk, market risk and interest
rate risk. The Board is responsible for managing these risks and the policies adopted are as set out below.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or other counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Group's cash deposits, as most receivables are secured
on land and buildings.
The Group has cash deposits of £175.2m (2016: £282.3m) which are held by the providers of its banking facilities. These are
primarily provided by HSBC Bank Plc, Barclays Bank Plc, Lloyds Bank Plc and The Royal Bank of Scotland, being four of the
UK's leading financial institutions. The security and suitability of these banks is monitored by the treasury function on a
regular basis.
Other financial assets, as described in Note 12, of £14.9m (2016: £18.5m) are receivables on extended terms granted as part
of a sales transaction and are secured by way of a legal charge on the relevant property. Therefore credit risk is
considered low.
The carrying value of trade and other receivables is mainly amounts due from housing association sales, land sales and
commercial sales, and equates to the Group's exposure to credit risk which is set out in Note 15. Amounts due from joint
ventures of £39.2m (2016: £54.8m) is funding provided on two (2016: three) joint venture developments which are being
project managed by the Group and are subject to contractual arrangements. Within trade and other receivables the other
largest single amount outstanding at the year end is £10.5m (2016: £14.3m) which is within agreed terms.
The Group considers the credit quality of financial assets that are neither past due nor impaired as good, as described in
Note 15.
In managing risk the Group assesses the credit risk of its counterparties before entering into a transaction. No credit
limits were exceeded during the reporting year, and management does not expect any material losses from non-performance of
any counterparties, including in respect of receivables not yet due. No material financial assets are past due, or are
considered to be impaired as at the consolidated statement of financial position date (2016: none).
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
Cash flow forecasts are produced to monitor the expected cash flow requirements of the Group against the available
facilities. The principal risks within these cash flows relate to achieving the level of sales volume and prices in line
with current forecasts.
The following are the contractual maturities of the financial liabilities of the Group at 31st October 2017:
2017 Carrying value Contractual cash flows Within 1 year 1-2 years 2-3 years More than 3 years
£m £m £m £m £m £m
Revolving credit facility 40.0 40.1 0.1 - - 40.0
Senior loan notes 100.0 133.7 3.5 3.5 3.5 123.2
LIFF loans 5.7 6.1 2.1 2.0 2.0 -
Other financial liabilities carrying interest 72.5 74.0 44.9 9.8 19.3 -
Financial liabilities carrying no interest 398.1 405.7 328.4 28.5 33.4 15.4
At 31st October 2017 616.3 659.6 379.0 43.8 58.2 178.6
LIFF loans are development specific loans from the HCA and are repayable on the earlier of legal completion of related
units or long stop dates. Other financial liabilities carrying interest are land acquisitions using promissory notes. The
timing and amount of future cash flows given in the table above is based on the Directors' best estimate of the likely
outcome.
2016 Carrying value Contractual cash flows Within 1 year 1-2 years 2-3 years More than 3 years
£m £m £m £m £m £m
Revolving credit facility 200.0 201.4 1.4 - - 200.0
LIFF loans 7.5 8.0 2.1 2.0 2.0 1.9
Other financial liabilities carrying interest 75.5 78.0 24.0 44.5 9.5 -
Financial liabilities carrying no interest 344.8 352.8 289.3 33.7 9.8 20.0
At 31st October 2016 627.8 640.2 316.8 80.2 21.3 221.9
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices,
will affect the Group's income or the value of its holdings of financial instruments.
Interest rate risk
Interest rate risk reflects the Group's exposure to fluctuations to interest rates in the market. The risk arises because
the Group's revolving credit facility is subject to floating interest rates based on LIBOR, and the LIFF loans are subject
to the EU Reference rate. The Group accepts a degree of interest rate risk, and monitors rate changes to ensure they are
within acceptable limits and in line with banking covenants. The Group has partially mitigated this risk in the year by
placing £100m of Senior loan notes which are at fixed interest rates. For the year ended 31st October 2017 it is estimated
that an increase of 1% in interest rates applying for the full year would decrease the Group's PBT by £1.7m (2016: £2.0m).
At 31st October 2017, the interest rate profile of the financial liabilities of the Group was:
2017 2016
£m £m
Sterling bank borrowings, loan notes and long-term creditors
Floating rate financial liabilities 45.7 207.5
Financial liabilities carrying interest 172.5 75.5
Financial liabilities carrying no interest 398.1 344.8
616.3 627.8
For financial liabilities that have no interest payable but for which imputed interest is charged, consisting of land
payables, the weighted average period to maturity is 40 months (2016: 45 months).
2017 2016
£m £m
The maturity of the financial liabilities is:
Repayable within one year 371.0 310.9
Repayable between one and two years 38.1 77.3
Repayable between two and five years 103.7 232.5
Repayable after five years 103.5 7.1
616.3 627.8
Fair Values
Financial assets
The Group's financial assets comprise cash equivalents, other financial assets and trade and other receivables. The
carrying amounts of financial assets equate to their fair value. At 31st October 2017 cash equivalents consisted of
sterling cash deposits of £175.2m (2016: £282.3m), with solicitors and on current account, £14.9m (2016: £18.5m) of other
financial assets, £112.1m (2016: £69.9m) of trade, other receivables and amounts recoverable on contracts, and £39.2m
(2016: £54.8m) of amounts due from joint ventures.
Financial liabilities
The Group's financial liabilities comprise loan notes, other loans, trade payables, payments on account, loans from joint
ventures and accruals. The carrying amount of the revolving credit facility, loan notes, other loans, trade payables,
payments on account, loans from joint ventures and accruals equate to their fair value. The fair values of the revolving
credit facility, other loans and loan notes are calculated based on the present value of future principal and interest cash
flows, discounted at the market rate of interest at the consolidated statement of financial position date.
The fair values of the facilities determined on this basis are:
2017 Nominal interest rate Facevalue Carrying value Fair value Maturity
£m £m £m
Revolving credit facility 3 mth LIBOR + 2.15% 40.0 40.0 40.0 2022
Senior loan notes 3.15% - 3.87% 100.0 100.0 100.0 2024 -2029
LIFF loans EU reference rate + 2.2% 3.8 3.8 3.8 2020
Total non-current interest-bearing loans 143.8 143.8 143.8
LIFF loans EU reference rate + 2.2% 1.9 1.9 1.9 2018
Total current interest-bearing loans 1.9 1.9 1.9
2016 Nominal interest rate Facevalue Carrying value Fair value Maturity
£m £m £m
Revolving credit facility 3 mth LIBOR + 2.15% 200.0 200.0 200.0 2020
LIFF loans EU reference rate + 2.2% 5.6 5.6 5.6 2020
Total non-current interest-bearing loans 205.6 205.6 205.6
LIFF loans EU reference rate + 2.2% 1.9 1.9 1.9 2017
Total current interest-bearing loans 1.9 1.9 1.9
Financial assets and liabilities by category
2017 2016
Financial assets £m £m
Sterling cash deposits 175.2 282.3
Trade receivables 78.5 44.1
Amounts due from joint ventures 39.2 54.8
Recoverable on contracts 20.4 21.0
Other receivables 13.2 4.8
Total loans and receivables 326.5 407.0
Other financial assets 14.9 18.5
Total financial assets 341.4 425.5
2017 2016
Financial liabilities £m £m
Revolving credit facility 40.0 200.0
Senior loan notes 100.0 -
Other loans 5.7 7.5
Land payments on contractual terms 215.6 185.0
Other trade payables 42.5 37.8
Other payables 19.1 19.8
Accruals 193.4 177.7
Financial liabilities at amortised cost 616.3 627.8
21 EMPLOYEE BENEFITS
(a) Retirement benefit obligations
Defined contribution scheme
The Group operates a defined contribution scheme for new employees. The assets of the scheme are held separately from those
of the Group in an independently administered fund. The contributions to this scheme for the year were £2.1m (2016: £2.0m).
At the consolidated statement of financial position date there were no outstanding or prepaid contributions (2016: £nil).
Defined benefit scheme
The Company sponsors the Crest Nicholson Group Pension and Life Assurance Scheme, a funded defined benefit pension scheme
in the UK. The Scheme is administered within a trust that is legally separate from the Company. Trustees are appointed by
both the Company and the Scheme's members and act in the interest of the Scheme and all relevant stakeholders, including
the members and the Company. The Trustees are also responsible for the investment of the Scheme's assets.
The Scheme closed to future accrual from 30th April 2010. Accrued pensions in relation to deferred members are revalued at
statutory revaluation in the period before retirement. Benefits also increase either at a fixed rate or in line with
inflation once a member has retired. The Scheme provides pensions to members on retirement and to their dependants on
death.
The Company pays contributions in relation to the funding deficit as determined by regular actuarial valuations. The
Trustees are required to use prudent assumptions to value the liabilities and costs of the Scheme whereas the accounting
assumptions must be best estimates.
Responsibility for making good any deficit within the Scheme lies with the Company and this introduces a number of risks
for the Company. The major risks are: interest rate risk; inflation risk; investment risk and longevity risk. The Company
and Trustees are aware of these risks and manage them through appropriate investment and funding strategies.
The Scheme is subject to regular actuarial valuations, which are usually carried out every three years. The last actuarial
valuation was carried out with an effective date of 31st January 2015. These actuarial valuations are carried out in
accordance with the requirements of the Pensions Act 2004 and so include deliberate margins for prudence. This contrasts
with these accounting disclosures, which are determined using best estimate assumptions.
The results of the actuarial valuation as at 31st January 2015 have been projected to 31st October 2017 by a qualified
independent actuary. The figures in the following disclosure were measured using the Projected Unit Method.
The investment strategy in place for the Scheme is to invest in a mix of return seeking, index linked and fixed interest
investments. At 31st October 2017, the allocation of the Scheme's invested assets was 61% in return seeking investments,
17% in corporate bonds, 21% in index linked gilts and 1% in cash. Details of the investment strategy can be found in the
Scheme's Statement of Investment Principles, which the Trustees update as their policy evolves.
2017£m 2016£m 2015 £m
The amounts recognised in the consolidated statement of financial position are as follows:
Present value of scheme liabilities (202.5) (200.9) (165.3)
Fair value of scheme assets 195.3 184.2 157.8
Net amount recognised at year end (7.2) (16.7) (7.5)
A deferred tax asset of £1.3m (2016: £3.1m) has been recognised in the consolidated statement of financial position.
The amounts recognised in comprehensive income are:
The current and past service costs, settlements and curtailments, together with the net interest expense for the year are
included in the consolidated statement of comprehensive income. Remeasurements of the net defined benefit liability are
included in other comprehensive income.
2017£m 2016£m
Administration expenses 0.6 0.5
Net interest expense 0.3 0.1
Charge recognised in the consolidated income statement 0.9 0.6
Remeasurements of the net liability
Return on scheme assets (2.8) (18.0)
Loss arising from changes in financial assumptions 1.9 37.0
Loss arising from changes in demographic assumptions - 1.0
Experience gain (0.5) (2.4)
(Credit)/charge recorded in the consolidated statement of comprehensive income (1.4) 17.6
Total defined benefit scheme (credit)/cost (0.5) 18.2
The principal actuarial assumptions used were: 2017% 2016%
Liability discount rate 2.8 2.8
Inflation assumption - RPI 3.4 3.5
Inflation assumption - CPI 2.6 2.7
Rate of increase in salaries - -
Revaluation of deferred pensions 2.6 2.7
Increases for pensions in payment
benefits accrued in respect of GMP 3.0 3.0
benefits accrued in excess of GMP pre-1997 3.0 3.0
benefits accrued post-1997 3.3 3.3
Proportion of employees opting for early retirement - -
2017% 2016%
Proportion of employees commuting pension for cash 100.0 100.0
2017 2016
Mortality assumption - pre-retirement AC00 AC00
Mortality assumption - male post-retirement SAPS S2 PMA SAPS S2 PMA
CMI_2014 CMI_2014
ltr 1.5% ltr 1.5%
Mortality assumption - female post-retirement SAPS S2 PFA SAPS S2 PFA
CMI_2014 CMI_2014
ltr 1.5% ltr 1.5%
2017 Years 2016 Years
Future expected lifetime of current pensioner at age 65
Male aged 65 at year end 22.8 22.7
Female aged 65 at year end 24.9 24.8
Future expected lifetime of future pensioner at age 65
Male aged 45 at year end 25.0 24.9
Female aged 45 at year end 27.2 27.1
Changes in the present value of assets over the year
2017£m 2016£m
Fair value of assets at beginning of the year 184.2 157.8
Interest income 5.3 6.2
Return on assets (excluding amount included in net interest expense) 2.8 18.0
Contributions from the employer 9.0 9.0
Benefits paid (5.4) (6.3)
Administration expenses (0.6) (0.5)
Fair value of assets at end of the year 195.3 184.2
Changes in the present value of liabilities over the year
2017£m 2016£m
Liabilities at beginning of the year 200.9 165.3
Interest cost 5.6 6.3
Remeasurement losses/(gains)
Actuarial losses arising from changes in financial assumptions 1.9 37.0
Actuarial losses arising from changes in demographic assumptions - 1.0
Experience gains (0.5) (2.4)
Benefits paid (5.4) (6.3)
Liabilities at end of the year 202.5 200.9
The split of the scheme's liabilities by category of membership is as follows: 2017£m 2016£m
Deferred pensioners 123.8 121.0
Pensions in payment 78.7 79.9
202.5 200.9
2017 Years 2016 Years
Average duration of the scheme's liabilities at the end of the year 18.0 18.0
This can be subdivided as follows:
Deferred pensioners 22.0 23.0
Pensions in payment 12.0 12.0
The major categories of scheme assets are as follows:
2017£m 2016£m
Return seeking
UK Equities - 15.4
Overseas Equities 19.4 31.6
Other (hedge funds, multistrategy and absolute return funds) 94.5 81.4
113.9 128.4
Debt instruments
Corporates 31.6 9.3
Index Linked 39.5 35.2
71.1 44.5
Other
Cash 1.9 2.5
Insured annuities 8.4 8.8
10.3 11.3
Total market value of assets 195.3 184.2
The Trustees reviewed the investment strategy during the year and the decision was made to reduce the Scheme's exposure to
equities in favour of more fixed income and absolute return investments.
The scheme has no investments in the Group or in property occupied by the Group.
The Group expects to contribute £0.75m per month until 31st August 2021, subject to scheme funding. The Group expects to
contribute £9.0m (2016: £9.0m) to scheme funding in the year ending 31st October 2018.
Sensitivity of the liability value to changes in the principal assumptions
If the discount rate was 0.25% higher/(lower), the scheme liabilities would decrease by £8.6m (increase by £9.2m) if all
the other assumptions remained unchanged.
If the inflation assumption was 0.25% higher/(lower), the scheme liabilities would increase by £4.5m (decrease by £5.0m) if
all the other assumptions remained unchanged.
If life expectancies were to increase by one year, the scheme liabilities would increase by £8.5m if all the other
assumptions remained unchanged.
(b) Share-based payments
The Group operates an LTIP, an employee share option scheme (ESOS), an SAYE and a deferred bonus plan. Expected volatility
for all plans/schemes for the current and previous year (where applicable) is based on the historical share price movements
of Crest Nicholson Holdings plc since the Company listed in February 2013.
Long-term incentive plan
The Group's LTIP is open to the Executive Directors and senior management with awards being made at the discretion of the
Remuneration Committee. Awards under the plan vest over three years and are subject to three years' service, and return on
capital and profit performance conditions. Options granted under the plan are exercisable between 3 and 10 years after the
date of grant. Awards may be satisfied by shares held in the employee benefit trust (EBT), the issue of new shares
(directly or to the EBT) or the acquisition of shares in the market.
Date of grant 8th Mar 2013 14th Feb 2014 27th Feb 2015 26th Feb 2016 10th Mar 2016 28th Feb 2017
Options granted 2,226,041 1,246,861 1,270,176 1,075,943 50,336 1,266,364
Fair value at measurement date £2.62 £3.49 £4.02 £5.07 £5.03 £4.67
Share price on date of grant £2.80 £3.81 £4.45 £5.62 £5.03 £5.42
Exercise price £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
Vesting period 3 years 3 years 3 years 3 years N/A 3 years
Expected dividend yield 2.50% 2.50% 3.20% 3.50% N/A 5.09%
Expected volatility 33.00% 28.90% 30.00% 30.00% N/A 45.00%
Risk free interest rate 0.40% 0.40% 0.86% 0.43% N/A 0.14%
Valuation model Binomial Binomial Binomial Binomial N/A Binomial
Contractual life from 8th Mar 2013 14th Feb 2014 27th Feb 2015 26th Feb 2016 10th Mar 2016 28th Feb 2017
Contractual life to 7th Mar 2023 13th Feb 2024 26th Feb 2025 25th Feb 2026 7th Mar 2023 27th Feb 2027
Number of options Number of options Number of options Number of options Number of options Number of options Total number of options
Movements in the year
Outstanding at 1st November 2015 1,928,711 1,102,114 1,220,835 - - - 4,251,660
Granted during the year - - - 1,075,943 50,336 - 1,126,279
Exercised during the year (1,915,806) (43,176) (17,197) - (50,336) - (2,026,515)
Lapsed during the year (12,905) (100,849) (173,500) (81,654) - - (368,908)
Outstanding at 31st October 2016 - 958,089 1,030,138 994,289 - - 2,982,516
Granted during the year - - - - - 1,266,364 1,266,364
Exercised during the year - (933,342) - - - - (933,342)
Lapsed during the year - (24,747) (65,616) (66,511) - (72,088) (228,962)
Outstanding at 31st October 2017 - - 964,522 927,778 - 1,194,276 3,086,576
Exercisable at 31st October 2017 - - - - - - -
Exercisable at 31st October 2016 - - - - - - -
£m £m £m £m £m £m Total £m
Charge to income for the current year - 0.2 1.5 0.8 - 0.9 3.4
Charge to income for the prior year 0.5 1.1 1.3 0.2 0.3 - 3.4
The weighted average exercise price of LTIP options was £nil (2016: £nil).
Employee share option scheme
This is a limited scheme which represents the balance of shares from the previous management incentive plan, which vested
at admission. The balance of shares are held by the Group's Employee Share Ownership Trust and certain options have been
granted to Executive Directors and other employees. Options granted under the plan are exercisable between 2 and 10 years
after the date of grant. The options are valued at the admission price or share price on date of grant. There are no
performance criteria but recipients must remain employed by the Group on the applicable vesting date.
Date of grant 17th Aug 2015
Options granted 1,500
Fair value at measurement date £0.00
Share price on date of grant £5.68
Exercise price £0.00
Vesting period 2 years
Expected dividend yield N/A
Expected volatility N/A
Risk free interest rate N/A
Valuation model N/A
Contractual life from 17th Aug 2015
Contractual life to 16th Aug 2025
Movements in the year Number of options
Outstanding at 1st November 2015 1,500
Outstanding at 31st October 2016 1,500
Exercised during the year (1,500)
Outstanding at 31st October 2017 -
Exercisable at 31st October 2017 -
Exercisable at 31st October 2016 -
£m
Charge to income for the current year -
Charge to income for the prior year -
The weighted average exercise price of employee share options was £nil (2016: £nil).
Save As You Earn
Executive Directors and eligible employees are invited to make regular monthly contributions to a Sharesave scheme operated
by Equiniti. On completion of the three year contract period employees are able to purchase ordinary shares in the Company
based on the market price at the date of invitation less a 20% discount. There are no performance conditions.
Date of grant 22nd May 2013 15th Jul 2014 16th Jul 2015 1st Aug 2016 3rd Aug 2017
Options granted 805,805 569,998 257,264 1,208,742 453,663
Fair value at measurement date £0.82 £0.70 £1.03 £1.11 £1.06
Share price on date of grant £3.09 £3.44 £5.63 £3.56 £5.41
Exercise price £2.47 £2.76 £4.51 £2.86 £4.20
Vesting period 3 years 3 years 3 years 3 years 3 years
Expected dividend yield 2.50% 2.50% 3.00% 4.80% 5.10%
Expected volatility 32.00% 28.90% 29.00% 45.00% 35.00%
Risk free interest rate 0.55% 1.61% 1.16% 0.19% 0.30%
Valuation model Binomial Binomial Binomial Binomial Binomial
Contractual life from 1st Aug 2013 1st Aug 2014 1st Aug 2015 1st Sep 2016 1st Sep 2017
Contractual life to 31st Jan 2017 31st Jan 2018 31st Jan 2019 29th Feb 2020 28th Feb 2021
Movements in the year Number of options Number of options Number of options Number of options Number of options Total number of options Weighted average exercise price
Outstanding at 1st November 2015 617,114 467,694 247,290 - - 1,332,098 £2.95
Granted during the year - - - 1,208,742 - 1,208,742 £2.86
Exercised during the year (554,982) (2,355) - - - (557,337) £2.47
Lapsed during the year (25,195) (44,264) (142,812) (14,472) - (226,743) £3.84
Outstanding at 31st October 2016 36,937 421,075 104,478 1,194,270 - 1,756,760 £2.93
Granted during the year - - - - 453,663 453,663 £4.20
Exercised during the year (34,751) (377,761) (531) (3,181) - (416,224) £2.74
Lapsed during the year (2,186) (15,930) (21,452) (146,149) (5,140) (190,857) £3.07
Outstanding at 31st October 2017 - 27,384 82,495 1,044,940 448,523 1,603,342 £3.32
Exercisable at 31st October 2017 - 27,384 - - - 27,384
Exercisable at 31st October 2016 36,937 - - - - 36,937
£m £m £m £m £m Total £m
Charge to income for the current year - 0.1 - 0.4 - 0.5
Charge to income for the prior year 0.1 0.1 - 0.1 - 0.3
Deferred bonus plan
Under the terms of certain bonus schemes, some parts of bonus payments must be deferred into share options. The options
carry no performance criteria and vest over one or three years. Options granted under the plan are exercisable between 1
and 10 years after the date of grant. Deferred bonus plan option numbers are based on the share price on date of grant.
Date of grant 27th Feb 2015 26th Feb 2016 10th Mar 2016 8th Feb 2017 28th Feb 2017
Options granted 257,219 140,185 3,861 2,078 133,761
Fair value at measurement date £4.45 £5.62 £5.03 £4.83 £5.42
Share price on date of grant £4.45 £5.62 £5.03 £4.83 £5.42
Exercise price £0.00 £0.00 £0.00 £0.00 £0.00
- More to follow, for following part double click ID:nRSX7240CdRecent news on Crest Nicholson Holdings
See all newsREG - Crest Nicholson Hdgs - Holding(s) in Company
AnnouncementREG - Crest Nicholson Hdgs - Holding(s) in Company
AnnouncementREG - Crest Nicholson Hdgs - Block listing Interim Review
AnnouncementREG - Crest Nicholson Hdgs - Holding(s) in Company
AnnouncementREG - Crest Nicholson Hdgs - Directorate Change
Announcement