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The Markets
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The Markets
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Builders and building materials

Crest Nicholson swings to loss due to govt levy but ups dividend and guidance

The housebuilder reported strong underlying momentum and a resilient housing market, leading it to lift profit expectations for the full year

Crest Nicholson PLC (LSE:CRST) hiked its half-year dividend by over a third even though it swung to a loss due to its payment of the levy as part of the government's Building Safety Pledge.

Given strong underlying momentum and a housing market it described as “resilient”, the housebuilder has lifted profit expectations for the full year to adjusted profit before tax of £135-140mln, 5-10% ahead of the current consensus.

As of 10 June, full-year expected revenue was more than 96% covered by the order book, with 2,891 units and a gross development value of £814.9mln.

For the six months ended 30 April, the FTSE 250-listed group reported a loss before tax of £52.5mln, compared to a £36.3mln profit a year ago, after it took a £105mln charge in respect of the levy.

Revenues rose 12.3% to £364.3mln as home completions increased 7.8% to 1,096 and open market average selling prices increased 2.8% to £408,000.

The sales rate of 0.72 per outlet per week was slightly ahead of last year’s 0.69, as were the average number of outlets, at 58 versus 57.

A 5.5p dividend was declared, up 34% on a year ago, as net cash ended the period at £173.3mln compared with £130mln a year earlier.

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