REG - Crest Nicholson Hdgs - Half-year Report <Origin Href="QuoteRef">CRST.L</Origin> - Part 2
14/06/2016 07:06
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the condensed consolidated interim
financial statements are
consistent with those applied by
the Group in its Annual Integrated
Report for the year ended 31
October 2015, other than as set
out below.
(i) Taxes on income in the
interim periods are accrued using
the tax rate that would be
applicable to expected annual
earnings.
(ii) The following new standards,
amendments to standards and
interpretations are applicable to
the Group and are mandatory for
the first time for the financial
year beginning 1 November 2015:
IAS 19 (amendment) Employee
Benefits. The amendment has not
had a significant effect on the
Group's financial statements.
There are no standards, amendments
or interpretations that are not
yet effective that would be
expected to have a significant
effect on the Group's net assets.
3 Accounting estimates and
judgements
The preparation of the condensed
consolidated interim financial
statements requires management to
make judgements, estimates and
assumptions that affect the
application of accounting policies
and the reported amounts of assets
and liabilities, income and
expense. Actual results may differ
from these estimates. In preparing
these condensed consolidated
interim financial statements, the
significant judgements made by
management in applying the Group's
accounting policies and the key
sources of estimation uncertainty
were the same as those that
applied to the Annual Integrated
Report for the year ended 31
October 2015, with the exception
of changes in estimates that are
required in determining the
provision for income taxes.
4 Seasonality
In common with the rest of the UK
housebuilding industry, activity
occurs throughout the year, with
peaks in sales completions in
Spring and Autumn. This creates
seasonality in the Group's trading
results and working capital.
5 Dividends on equity shares
Half year ended Half year ended Full year ended
30 April 30 April 31 October
2016 2015 2015
£m £m £m
Dividends recognised as
distributions to equity
shareholders in the period:
Final dividend for the year ended 33.5 25.6 25.6
31 October 2015 of 13.3 pence per
share (2014: 10.2 pence per share)
Interim dividend for the year - - 16.1
ended 31 October 2015: 6.4 pence
per share
33.5 25.6 41.7
Dividends declared as
distributions to equity
shareholders in the period:
Proposed final dividend for the - - 33.4
year ended 31 October 2015: 13.3
pence per share
Proposed interim dividend for the 23.1 16.1 -
year ending 31 October 2016 of 9.1
pence per share (2015: 6.4 pence
per share)
The proposed interim dividend was
approved by the Board on 14 June
2016 and, in accordance with IAS
10 "Events after the Reporting
Period", has not been included as
a liability in this condensed
consolidated interim financial
information.
6 Taxation
The taxation expense on profit for
the half year ended 30 April 2016
is 18.9% (30 April 2015: 19.9%)
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 2016 is based on
the weighted average number of
shares in issue during the period
of 252.7m (April 2015: 251.5m,
October 2015: 251.5m). 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 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
Half year ended 30 April 2015
Basic earnings per share 46.7 251.5 18.6
Effect of share options - 4.9
Diluted earnings per share 46.7 256.4 18.2
Full year ended 31 October 2015
Basic earnings per share 124.1 251.5 49.3
Effect of share options - 5.0
Diluted earnings per share 124.1 256.5 48.4
8 Interest-bearing loans and
borrowings
As at As at As at
30 April 30 April 31 October
2016 2015 2015
£m £m £m
Non-current
Revolving credit facility 170.0 157.0 206.0
Revolving credit facility issue (2.6) (3.3) (2.9)
costs
Other loans 5.6 8.7 7.5
173.0 162.4 210.6
Current
Other loans 1.9 12.1 7.4
1.9 12.1 7.4
At 30 April 2016, the Group had
undrawn revolving credit
facilities of £70.0m (April 2015:
£83.0m, October 2015: £34.0m) and
cash and cash equivalents of
£148.8m (April 2015: £113.9m,
October 2015: £187.4m).
9 Share Capital
Shares Nominal Share Share
issued value capital premium
account
Number Pence £ £
Half year ended 30 April 2016
As at 31 October 2015 251,661,200 5 12,583,060 71,660,903
Issue of share capital 2,046,024 5 102,301 2,742
As at 30 April 2016 253,707,224 5 12,685,361 71,663,645
During the period the Company issued
1,133 new ordinary shares of 5 pence
each to satisfy share options under
the SAYE scheme which became
exercisable at a price of 247 pence
per share, 110,097 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
1,934,794 new ordinary shares of 5
pence each to satisfy share options
under the 2013 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
2016 2015 2015
£m £m £m
At beginning of the period 24.2 28.4 28.4
Disposals (5.1) (4.1) (8.1)
Imputed interest 1.6 1.6 3.9
At end of the period 20.7 25.9 24.2
Of which:
Non-current assets 19.9 23.6 23.0
Current assets 0.8 2.3 1.2
20.7 25.9 24.2
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.
For all other financial instruments
carrying values are equal to their
fair values. 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
2016 2015 2015
Discount rate, incorporating default 10.5% 10.5% 10.5%
rate
House price inflation for the next 3.0% 3.0% 3.0%
three years
Timing of receipt 10 to 16 years 10 to 15 years 10 to 15 years
Sensitivity - effect on value of
other financial assets (less)/more
30 April 30 April
2016 2016
Increase assumptions by 1% / year Decrease assumptions by 1% / year
£m £m
Discount rate, incorporating default (0.7) 0.8
rate
House price inflation for the next 0.4 (0.4)
three years
Timing of receipt (1.0) 1.0
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 2016 was £1.6m
(2015: £1.6m, full year to 31
October 2015 £3.9m).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 2015. In January 2016
the Group entered into a joint
venture with A2Dominion to procure
and develop a site in Walton On
Thames, Surrey. As part of the
agreement the Group provided funding
to the joint venture of £12.0m to
acquire the freehold land. There
were other movements in joint
venture loans of £5.3m 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 received £0.7m
(half year 2015: £nil) interest on
joint venture funding and £0.1m
(half year 2015: £nil) in joint
venture project management fees.
12 General information
Crest Nicholson Holdings plc is a
public limited company incorporated
and domiciled in the UK and has its
primary listing on the London Stock
Exchange.
The registered office address is
Crest House, Pyrcroft Road,
Chertsey, Surrey KT16 9GN.
Independent review report to Crest Nicholson Holdings plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Crest Nicholson Holdings plc's condensed consolidated interim
financial statements (the "interim financial statements") in the half-yearly
financial report of Crest Nicholson Holdings plc for the 6 month period ended
30 April 2016. Based on our review, nothing has come to our attention that
causes us to believe that the interim 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 Rules and Transparency Rules of the United Kingdom's Financial
Conduct Authority.
What we have reviewed
The interim financial statements comprise:
· the Condensed Consolidated Statement of Financial Position as at 30
April 2016;
· 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 interim financial statements.
The interim financial statements included in the half-yearly financial report
have been prepared in accordance with International Accounting Standard 34,
'Interim Financial Reporting', as adopted by the European Union and the
Disclosure Rules and Transparency Rules of the United Kingdom's Financial
Conduct Authority.
As disclosed in note 1 to the interim 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 interim financial statements and the review
Our responsibilities and those of the directors
The half-yearly financial report, including the interim financial statements,
is the responsibility of, and has been approved by, the directors. The
directors are responsible for preparing the half-yearly financial report in
accordance with the Disclosure Rules and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Our responsibility is to express a conclusion on the interim financial
statements in the half-yearly financial report 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 Rules and
Transparency Rules 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 interim 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 interim financial
statements.
PricewaterhouseCoopers LLP
Chartered Accountants
London
14 June 2016
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 interim
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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