REG - Crest Nicholson Hdgs - Trading Statement

Crest Nicholson HoldingsAnnouncement

17/11/2022 07:01

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221117:nRSQ6888Ga&default-theme=true

RNS Number : 6888G  Crest Nicholson Holdings PLC  17 November 2022

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of domestic law
by virtue of the European Union (Withdrawal) Act 2018.

 

Crest Nicholson Holdings plc

(the "Group" or "Crest Nicholson")

GOOD PROGRESS DELIVERING OUR STRATEGY

ROBUST BALANCE SHEET AND RENEWED FINANCING

GROWTH AMBITIONS UPDATED TO REFLECT MARKET CONDITIONS

 

Crest Nicholson today provides an update on trading for the 12-month period
ending 31 October 2022.

 

Financial highlights

·      FY22 Adjusted Profit Before Tax expected to be within previously
guided range of £135m to £140m

·      18-week SPOW rate to 31st October 2022 of 0.55 with weaker
trading in recent weeks, reflecting the increased economic uncertainty

·      Forward sales as at 11 November 2022 were 2,038 units and
£526.2m Gross Development Value (GDV) (12 November 2021: 2,502 units and
£623.9m GDV), with good visibility of sales pipeline for FY23

·      Continued expansion of operating margins in line with guidance as
the Group continues to make good progress with new site acquisitions whilst
maintaining discipline on overheads

·      Excellent cash generation in FY22, ensuring the Group ran on a
net-cash basis throughout the year. Net cash as at 31 October 2022 was
£276.5m (FY21: £252.8m)

·      Disciplined investment for growth in a competitive land market:
2,771 plots have been approved in FY22 for purchase at a gross margin of 25.5%
(after S&M)

·      Completion of a new Sustainability Linked Revolving Credit
Facility further enhances our financial position.

Operational highlights

·      Increased utilisation of new house type range which delivers
operational efficiencies and optimises build rates

·      Progress against our sustainability targets remains on track and
our commitments have been enhanced in our new Sustainability Linked Revolving
Credit Facility

·      During the year we have been able to add high quality sites to
our land portfolio in Yorkshire and East Anglia as well as across our existing
divisions. We will remain disciplined and selective in acquiring new sites

·      Given the current macro-economic uncertainty the Group has
decided to defer the planned opening of a third new division in FY23 until
further notice and will adjust the expected pace of growth across its existing
divisions.

 

Commenting on today's announcement, Peter Truscott, Chief Executive said:

'We continue to make good progress against our strategy with further revenue
growth, operating margin expansion, an increase in return on capital employed
and excellent cash generation throughout the year. We are pleased to have
mobilised operations in Yorkshire and East Anglia with strong teams in place
and good opportunities in these regions. However, given the well-publicised
economic conditions we believe it is the right decision to defer the planned
opening of a third new division and adjust the pace of growth in our existing
ones until a more stable environment returns.

We also hope that repeated commitments to reform the planning system will be
delivered in the near term. These changes should focus on releasing more land
which can be immediately developed, helping the UK fix its longstanding
shortage of housing stock. Accordingly, we will remain focused on delivering
our strong forward order book and maintaining a robust financial position.

The UK is clearly facing a challenging macro-economic outlook, however we
remain confident in the long-term fundamentals of the UK housing market. The
strength of our balance sheet underpins this conviction and the delivery of
our medium-term growth strategy.'

 

£250m Revolving Credit Facility

The Group's existing £250m revolving credit facility was due to expire in
June 2024. We are pleased to announce that the Group completed a new
Sustainability Linked Revolving Credit Facility on 13 October 2022.

This £250m facility provides the Group with strong levels of liquidity to
complement the year-end net cash position of £276.5m and expires in October
2026. It is also linked to the Group's sustainability strategy with a lower
interest paid if certain targets are achieved. These targets include:

·      Reduction in absolute scope 1 and 2 emissions in line with our
science-based targets

·      Increasing the number of our suppliers engaging with the Supply
Chain Sustainability School

·      Reduction in carbon emissions associated with the use of our
homes

·      Increasing the number of our employees in trainee positions and
on training programmes

The Group will provide annual detailed disclosure on its progress against
these targets in its next Annual Integrated Report which will be published in
February 2023.

 

For further information, please contact:

 

 Crest Nicholson                              +44 (0) 7557 842720

 Jenny Matthews, Head of Investor Relations
 Tulchan Communications                       +44 (0) 20 7353 4200

 James Macey White / Giles Kernick

 

The person responsible for arranging the release of this announcement on
behalf of the Company is Kevin Maguire, General Counsel and Company Secretary.

 

17 November 2022

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTDZMMMRVRGZZM