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Prices & Quotes - UK Markets - Crest Nicholson Holdings (CRST)

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Share Price:
Up 239.00p
Change Today:
1.40p
Market Cap:
614.04m
Sector:
Household Goods & Home Construction

Crest Nicholson interim profit, revenue hit by Covid outbreak

By Michele Maatouk

Date: Wednesday 24 Jun 2020

LONDON (ShareCast) - (Sharecast News) - Housebuilder Crest Nicholson reported a slump in interim revenue and profit on Wednesday as it took a hit from the Covid-19 pandemic, and said full-year profit was set to fall.
In the six months to 30 April, revenue slid 52.2% to 240m, with adjusted pre-tax profit down 93% to 4.5m. The number of completed homes fell 34.7% to 775, forward sales declined to 575.1m from 636.9m and the open market average selling price was down 16.7% to 344,000.

The company said the coronavirus crisis "significantly" impacted its half-year performance, with revenue and profit both lower than it expected as a substantial number of private completions planned for the end of April were postponed.

Crest suspended its 2020 financial guidance in March due to the economic and operational uncertainty resulting from the coronavirus outbreak. Since then, it said it has been "encouraged" by an improvement in the trading environment in recent weeks, with increasing levels of web traffic and footfall being converted into reservation rates similar to those seen prior to the lockdown. However, it remains "a highly uncertain" operating environment.

"Assuming that the lockdown continues to carefully unwind with supportive measures in place to facilitate building and selling homes, the group expects profit in the second half of the year to be significantly higher than the first," it said.

On this basis, the group said it now expects FY20 adjusted profit before tax to be in the range of 35m-45m. This is below 2019's profit of 121.1m and falls short of consensus expectations of 52m.

Crest also said it will reinstate its dividend "when appropriate".

Chief executive Peter Truscott said: "Before lockdown the business was performing well and trading in line with our expectations. We were continuing to recognise further improvements to margin in our current developments and short-term land portfolio.

"However, we cannot ignore the risks that Covid-19 presents to the UK housing market even if we cannot predict with certainty what the impact of those risks will be. Therefore, we have adapted our strategy by deferring the planned opening of an additional division and targeting further reductions in overheads."

At 1320 BST, the shares were down 8.8% at 228.80p.

CMC Markets analyst David Madden said: "The group blamed political uncertainty in relation to Brexit and the pandemic for the disappointing numbers, but keep in mind that companies like Vistry, Bellway and Redrow have performed well in the same period. Crest said it will reinstate the dividend when it is appropriate to do so, but in light of today's update, that is unlikely to be anytime soon."

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CRST Market Data

Currency UK Pounds
Price 239.00p
Change Today 1.40p
52 Week High 519.00p
52 Week Low 164.50p
Volume 469,104
Shares Issued 256.92m
Market Cap 614.04m

Performance Indicators

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What The Brokers Say

Strong Buy 5
Buy 0
Neutral 3
Sell 0
Strong Sell 2
Total 10
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CRST Dividends

  Latest Previous
  Final Interim
Ex-Div n/a 19-Sep-19
Paid n/a 04-Oct-19
Amount 0.000p 11.20p

Trades for 21-Oct-2020

Time Volume / Share Price
16:35 117,408 @ 239.00p
16:29 5 @ 239.20p
16:29 96 @ 239.60p
16:29 521 @ 239.40p
16:29 48 @ 239.20p

CRST Key Personnel

CEO Peter Truscott
COO Tom Nicholson