REG - Crest Nicholson Hdgs - Half Yearly Report <Origin Href="QuoteRef">CRST.L</Origin> - Part 2
16/07/2015 11:04
- Part 2: For the preceding part double click ID:nRSP2317Qa
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.
4 Dividends on equity shares
Amounts recognised as distributions to equity holders in the period:
Half year ended Half year ended Full year ended
30 April 30 April 31 October
2015 2014 2014
£m £m £m
Dividends recognised as distributions to equity shareholders in the period:
Final dividend for the year ended 31 October 2014 of 10.2 pence per share (2013: 6.5 pence per share) 25.6 16.3 16.3
Interim dividend for the year ended 31 October 2014: 4.1 pence per share - - 10.3
25.6 16.3 26.6
Dividends declared as distributions to equity shareholders in the period:
Proposed final dividend for the year ended 31 October 2014: 10.2 pence per share - - 25.6
Proposed interim dividend for the year ending 31 October 2015 of 6.4 pence per share (2014: 4.1 pence per share) 16.1 10.3 -
The proposed interim dividend was approved by the Board on 16 June 2015 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.
5 Taxation
The taxation expense on profit for the half year ended 30 April 2015 is 19.9% (30 April 2014: 19.5%) and reflects the estimated effective tax rate for the full financial year.
6 Earnings per share
The basic earnings per share (EPS) for the six months ended 30 April 2015 is based on the weighted average number of shares in issue during the period of 251.5m (April 2014: 251.4m, October 2014: 251.4m). Diluted EPS has been calculated after adjusting the weighted average number of shares in issue for all potentially dilutive shares held under unexercised options.
Half year ended 30 April 2015 Earnings Weighted EPS
average
number of
shares
£m millions pence
Basic earnings per share 46.7 251.5 18.6 p
Effect of share options - 4.9
Diluted earnings per share 46.7 256.4 18.2 p
Half year ended 30 April 2014 Earnings Weighted EPS
average
number of
shares
£m millions pence
Basic earnings per share 30.9 251.4 12.3 p
Effect of share options - 3.2
Diluted earnings per share 30.9 254.6 12.1 p
Full year ended 31 October 2014 Earnings Weighted EPS
average
number of
shares
£m millions pence
Basic earnings per share 98.8 251.4 39.3 p
Effect of share options - 4.1
Diluted earnings per share 98.8 255.5 38.7 p
7 Borrowings
As at As at As at
30 April 30 April 31 October
2015 2014 2014
£m £m £m
Non-current
Revolving credit facility 157.0 115.0 135.0
Unamortised issue costs (3.3) (2.6) (2.4)
Other loans 8.7 18.7 14.1
162.4 131.1 146.7
Current
Other loans 12.1 18.5 14.6
12.1 18.5 14.6
The £200m revolving credit facility and £80m ancillary facility, with maturity dates in March 2019 were amended to £240m revolving credit facility and £80m ancillary facility with maturity dates in January 2020. At 30 April 2015, the Group had undrawn revolving credit facilities of £83.0m and cash and cash equivalents of £113.9m.
8 Share Capital
Shares Nominal Share Share
issued value capital premium
account
Number Pence £ £
Half year ended 30 April 2015
As at 31 October 2014 251,431,313 5 12,571,565 71,644,959
Issue of share capital 165,561 5 8,279 3,914
As at 30 April 2015 251,596,874 5 12,579,844 71,648,873
During the period the company issued 4,937 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, and 160,624 new ordinary shares of 5 pence each to satisfy share options under the deferred bonus plan which became exercisable at nil pence per share.
9 Other financial assets
As at As at As at
30 April 30 April 31 October
2015 2014 2014
£m £m £m
At beginning of the year 28.4 31.9 31.9
Additions - 0.3 0.2
Disposals (4.1) (3.6) (7.0)
Imputed interest 1.6 1.6 3.3
At the end of the period 25.9 30.2 28.4
Of which:
Non-current asset 23.6 30.2 28.4
Current asset 2.3 - -
25.9 30.2 28.4
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.
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 the Directors' views of an appropriate discount rate,
future house price movements, the expected timing of receipts
and the likelihood that a purchaser defaults on a repayment.
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
2015 2014 2014
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 10 to 13 years 10 to 13 years 10 to 13 years
As at As at
30 April 30 April
2015 2015
Sensitivity - effect on value of other financial assets Increase assumptions by 1 % / 1 year Decrease assumptions by 1 % / 1 year
(less)/more
£m £m
Discount rate, incorporating default rate (0.9) 1.0
House price inflation for the next three years 0.8 (0.7)
Timing of receipt (1.2) 1.3
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 period ended
30 April 2015 was £1.6m (30 April 2014: £1.6m, 31 October 2014
£3.3m).
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 re-measured 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 are recorded against the
carrying value of the assets and recognised directly in the
statement of comprehensive income.
10 Related party transactions
Related parties are consistent with those disclosed in the
Group's Annual Report and Accounts for the year ended 31 October
2014. There have been no related party transactions in the first
six months of the current financial year which have materially
affected the financial position of the Group. During the
financial period there were no transactions with joint ventures
other than movements in loans of £12.1m. The Group advanced
£9.9m to Kitewood Cossall Limited, an entity which the Group
holds a 50% interest to develop a site in London. The balance of
£2.2m relates to the movement in amount due to Epsom LLP, an
entity in which the Group has a 50% interest.
11 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.
This information is provided by RNS
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