REG - Crest Nicholson Hdgs - Half-year Report <Origin Href="QuoteRef">CRST.L</Origin> - Part 2
13/06/2017 07:05
- Part 2: For the preceding part double click ID:nRSM8691Ha
Final dividend for the year ended 31 October 2016 of 18.5 pence per share (2015: 13.3 pence per share) 47.2 33.5 33.5
Interim dividend for the year ended 31 October 2016: 9.1 pence per share - - 23.1
47.2 33.5 56.6
Dividends declared as distributions to equity shareholders in the period:
Proposed final dividend for the year ended 31 October 2016: 18.5 pence per share - - 47.2
Proposed interim dividend for the year ending 31 October 2017 of 11.2 pence per share (2016: 9.1 pence per share) 28.6 23.1 -
The proposed interim dividend was approved by the Board on 13 June 2017 and, in accordance with IAS 10 "Events after the Reporting Period", has not been included as a liability in this condensed consolidated half year financial information.
6 Taxation
The taxation expense on profit for the half year ended 30 April 2017 is 18.5% (30 April 2016: 18.9%) and reflects the best estimate of the weighted average annual effective tax rate for the full financial year.
7 Earnings per share
The basic EPS for the six months ended 30 April 2017 is based on the weighted average number of shares in issue during the period of 254.9m (April 2016: 252.7m, October 2016: 252.8m). Diluted EPS has been calculated after adjusting the weighted average number of shares in issue for all potentially dilutive shares held under unexercised options.
Earnings Weighted Per
average share
number of amount
shares
£m millions pence
Half year ended 30 April 2017
Basic earnings per share 62.1 254.9 24.4
Effect of share options - 4.1
Diluted earnings per share 62.1 259.0 24.0
Half year ended 30 April 2016
Basic earnings per share 58.9 252.7 23.3
Effect of share options - 4.9
Diluted earnings per share 58.9 257.6 22.9
Full year ended 31 October 2016
Basic earnings per share 156.8 252.8 62.0
Effect of share options - 4.8
Diluted earnings per share 156.8 257.6 60.9
8 Interest-bearing loans and borrowings
As at As at As at
30 April 30 April 31 October
2017 2016 2016
£m £m £m
Non-current
Revolving credit facility 175.0 170.0 200.0
Revolving credit facility issue costs (1.9) (2.6) (2.2)
Other loans 3.8 5.6 5.6
176.9 173.0 203.4
Current
Other loans 1.9 1.9 1.9
1.9 1.9 1.9
At 30 April 2017, the Group had undrawn revolving credit facilities of £65.0m (April 2016: £70.0m, October 2016: £40.0m) and cash and cash equivalents of £144.3m (April 2016: £148.8m, October 2016: £282.3m).
9 Share Capital
Shares Nominal Share Share
issued value capital premium
account
Number Pence £ £
Half year ended 30 April 2017
As at 31 October 2016 254,363,573 5 12,718,179 73,010,342
Issue of share capital 1,016,440 5 50,822 89,301
As at 30 April 2017 255,380,013 5 12,769,001 73,099,643
During the period the Company issued 36,600 new ordinary shares of 5 pence each to satisfy share options under the SAYE scheme which became exercisable at a price range of 247 to 451 pence per share, 46,498 new ordinary shares of 5 pence each to satisfy share options under the deferred bonus plan which became exercisable at nil pence per share, and 933,342 new ordinary shares of 5 pence each to satisfy share options under the 2014 LTIP which became exercisable at nil
pence per share.
10 Other financial assets
As at As at As at
30 April 30 April 31 October
2017 2016 2016
£m £m £m
At beginning of the period 18.5 24.2 24.2
Disposals (2.3) (5.1) (9.2)
Imputed interest 0.6 1.6 3.5
At end of the period 16.8 20.7 18.5
Of which:
Non-current assets 12.9 19.9 16.3
Current assets 3.9 0.8 2.2
16.8 20.7 18.5
Other financial assets carried at fair value are categorised as level 3 (inputs not
based on observable market data) within the hierarchical classification of IFRS 13
Revised. Other financial assets comprise shared equity loans secured by way of a
second charge on the property. The loans can be repaid at any time within the loan
agreement, the amount of which is dependent on the market value of the asset at the
date of repayment. The assets are recorded at fair value, being the estimated amount
receivable by the Group, discounted to present day values. The fair value of future
anticipated cash receipts takes into account Directors' views of an appropriate
discount rate (incorporating purchaser default rate), future house price movements
and the expected timing of receipts. These assumptions are given below and are
reviewed at each period end.
Assumptions As at As at As at
30 April 30 April 31 October
2017 2016 2016
Discount rate, incorporating default rate 10.5% 10.5% 10.5%
House price inflation for the next three years 3.0% 3.0% 3.0%
Timing of receipt 8 to 15 years 10 to 16 years 8 to 15 years
Sensitivity - effect on value of other financial assets (less)/more
30 April 2017 30 April 2017
Increase assumptions by 1% / year Decrease assumptions by 1% / year
£m £m
Discount rate, incorporating default rate (0.5) 0.5
House price inflation for the next three years 0.3 (0.3)
Timing of receipt (0.8) 0.6
The difference between the anticipated future receipt and the initial fair value is
charged over the estimated deferred term to financing, with the financial asset
increasing to its full expected cash settlement value on the anticipated receipt
date. The imputed interest credited to financing for the half year ended 30 April
2017 was £0.6m (2016: £1.6m, full year to 31 October 2016 £3.5m). At initial
recognition, the fair values of the assets are calculated using a discount rate,
appropriate to the class of assets, which reflects market conditions at the date of
entering into the transaction. The Directors consider at the end of each reporting
period whether the initial market discount rate still reflects up to date market
conditions. If a revision is required, the fair values of the assets are remeasured
at the present value of the revised future cash flows using this revised discount
rate. The difference between these values and the carrying values of the assets is
recorded against the carrying value of the assets and recognised directly in the
statement of comprehensive income.
11 Related party transactions
With the exception of below, related parties are consistent with those disclosed in
the Group's Annual Integrated report for the year ended 31 October 2016. There were
movements in joint venture loans of £3.8m during the period mainly relating to the
provision of working capital funding to Kitewood (Cossall) Limited, an entity which
the Group holds a 50% interest. The Group earned £1.0m (2016: £0.7m) interest on
joint venture funding and £0.2m (2016: £0.1m) in joint venture project management
fees. In the period a close family member of one of the Board of Directors purchased
a property from Kitewood (Cossall) Limited, an entity in which the Group holds a 50%
interest, at market value of £452,000.
Crest Nicholson Holdings plc
Half Year Results for the six months ended 30 April 2017
Independent review report to Crest Nicholson Holdings plc
Report on the condensed consolidated half year financial statements
Our conclusion
We have reviewed Crest Nicholson Holdings plc's condensed consolidated half
year financial statements (the "half year financial statements") in the half
year results of Crest Nicholson Holdings plc for the 6 month period ended 30
April 2017. Based on our review, nothing has come to our attention that causes
us to believe that the half year financial statements are not prepared, in all
material respects, in accordance with International Accounting Standard 34,
'Interim Financial Reporting', as adopted by the European Union and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.
What we have reviewed
The half year financial statements comprise:
· the Condensed Consolidated Statement of Financial Position as at 30
April 2017;
· the Condensed Consolidated Income Statement and Condensed Consolidated
Statement of Comprehensive Income for the period then ended;
· the Condensed Consolidated Cash Flow Statement for the period then
ended;
· the Condensed Consolidated Statement of Changes in Equity for the period
then ended; and
· the explanatory notes to the half year financial statements.
The half year financial statements included in the half year results have been
prepared in accordance with International Accounting Standard 34, 'Interim
Financial Reporting', as adopted by the European Union and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
As disclosed in Note 1 to the half year financial statements, the financial
reporting framework that has been applied in the preparation of the full
annual financial statements of the Group is applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union.
Responsibilities for the half year financial statements and the review
Our responsibilities and those of the Directors
The half year results, including the half year financial statements, is the
responsibility of, and has been approved by, the Directors. The Directors are
responsible for preparing the half year results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.
Our responsibility is to express a conclusion on the half year financial
statements in the half year results based on our review. This report,
including the conclusion, has been prepared for and only for the Company for
the purpose of complying with the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority and for no
other purpose. We do not, in giving this conclusion, accept or assume
responsibility for any other purpose or to any other person to whom this
report is shown or into whose hands it may come save where expressly agreed by
our prior consent in writing.
What a review of half year financial statements involves
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK and Ireland) and, consequently,
does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the half year financial
statements.
PricewaterhouseCoopers LLP
Chartered Accountants
London
13 June 2017
a) The maintenance and integrity of the Crest Nicholson Holdings plc website
is the responsibility of the Directors; the work carried out by the auditors
does not involve consideration of these matters and, accordingly, the auditors
accept no responsibility for any changes that may have occurred to the half
year financial statements since they were initially presented on the website.
b) Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other
jurisdictions.
This information is provided by RNS
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