TIDMCRST
RNS Number : 0205C
Crest Nicholson Holdings PLC
08 June 2023
CREST NICHOLSON HOLDINGS PLC
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 30 APRIL 2023
EXPANSION PLANS ON TRACK AND LAND ACQUISITIONS SUPPORT FUTURE
GROWTH
STRONG BALANCE SHEET MAINTAINED
FY23 DIVID PER SHARE HELD AT FY22 LEVEL
Crest Nicholson Holdings plc ('Crest Nicholson', the 'Company'
or the 'Group') today announces its unaudited interim results for
the six months ended 30 April 2023:
HY23 Financial Highlights
- FY23 adjusted profit before tax expected to be in line with
published consensus of GBP73.7m(1)
- Revenue at GBP282.7m (HY22: GBP364.3m), reflecting the economic
uncertainty and lower confidence in the housing market during
the first half
- Home completions of 894 (HY22: 1,096), comprising open market
completions (including bulk deals) of 647 (HY22: 912) and affordable
completions of 247 (HY22: 184)
- Sales per outlet week (SPOW) of 0.54 (HY22: 0.72) with average
outlets at 48 (HY22: 58). Average selling prices have remained
robust
- Forward sales as at 2 June 2023 of 2,354 units and GBP597.4m
Gross Development Value (GDV) (10 June 2022: 2,891 units and
GBP814.9m GDV) with approximately 85% of FY23 revenue covered
- Adjusted profit before tax(2) at GBP20.9m (HY22: GBP52.5m)
- Adjusted operating profit margin(2) at 7.8% (HY22: 15.0%)
- Profit before tax at GBP28.4m (HY22: GBP52.5m loss before tax),
including a GBP7.5m net exceptional credit relating to combustible
materials
- Strong balance sheet has enabled selective investment in the
land market during the first half to support future growth
- Net cash(2,3) at GBP66.2m (HY22: GBP173.3m) with average
net cash of GBP104.2m (HY22: GBP98.6m) during the period
- Land creditors at GBP148.2m (HY22: GBP179.9m)
- Return on capital employed(4) at 14.6% (HY22: 18.3%)
- Interim dividend of 5.5 pence per share (HY22: 5.5 pence)
- Total dividend for FY23 to be in line with prior year at
17.0 pence per share
Key financial metrics
GBPm (unless otherwise stated) HY23 HY22 % Change
Adjusted basis(2)
Operating profit 22.1 54.5 (59.4)
Operating profit margin 7.8% 15.0% -720bps
Profit before tax 20.9 52.5 (60.2)
Basic earnings per share (p) 6.1 15.7 (61.1)
Statutory basis
Revenue 282.7 364.3 (22.4)
Operating profit/(loss) 30.7 (50.5) (160.8)
Operating profit/(loss) margin 10.9% (13.9)% +2480bps
Profit/(loss) before tax 28.4 (52.5) (154.1)
Basic earnings/(loss) per share
(p) 8.2 (16.5) (149.7)
Other metrics
Home completions (number) 894 1,096 (18.4)
Net cash(2,3) 66.2 173.3 (61.8)
Dividend per share (p) 5.5 5.5 -
(1) (https://www.crestnicholson.com/investors/consensus-estimates)
(2) Adjusted basis represent the HY23 and HY22 statutory figures
adjusted for exceptional items as disclosed in note 5. Adjusted
performance metrics are non-statutory alternative performance
measures (APMs) used by the Directors to manage the business
which they believe should be shared for a greater understanding
of the performance of the Group. The definitions of these APMs
and the reconciliation to the statutory numbers are included
below.
(3) (Net cash is defined as cash and cash equivalents less interest-bearing
loans and borrowings. See note 14 to the condensed consolidated
half year financial statements.)
(4) Return on capital employed equals rolling 12-month adjusted
operating profit before joint ventures divided by the average
of opening and closing capital employed over the same 12 months
(capital employed = equity shareholders' funds plus net borrowing
or less net cash). Adjusted performance metrics are disclosed
below.
HY23 Strategic Highlights
- Good progress with divisional expansion
- Yorkshire office now active and operational. Six sites being
progressed with a further pipeline of other high quality
sites being reviewed
- Business leader in East Anglia joined in November 2022 and
establishing a new team in the region. Divisional office
now open with three sites being progressed for purchase
- Our disciplined approach to acquiring land enabled the Group
to add several high quality sites to our land portfolio
- 1,957 plots approved for purchase at a forecast gross margin
of 26.2% after sales and marketing costs
- 1,539 plots added to the short-term land portfolio
- On 13 March 2023 the Group signed the Government's Developer
Remediation Contract. HY23 provision of GBP139.2m remains materially
in line with FY22
- Five-star customer service recovery plan implemented with additional
resources and processes now in place
Peter Truscott, Chief Executive, commented:
We started our first half amidst the worst of the economic
uncertainty arising from the September 2022 mini-budget. Rapidly
falling consumer confidence and rising interest rates immediately
translated into softer demand in the housing market. At the time we
outlined that, with a package of sensible measures to restore
economic stability and trust, the market would remain resilient and
this has proven to be the case.
As we traded through the period, confidence started to return
and this has been reflected in our trading metrics, which have
sequentially improved throughout the period. Unemployment remains
low and mortgage availability remains good albeit at more expensive
rates. The ongoing lack of housing supply is continuing to support
house prices and these factors are also driving strong levels of
rental inflation. The economic case for buying a home therefore
remains compelling, but for many first time buyers the higher cost
of borrowing and the cessation of Help to Buy are prohibitive to
realising this ambition. If interest rates continue to rise, and
remain elevated for a sustained period of time, this will
undoubtedly exacerbate this issue even further and start to impact
demand and confidence again. We continue to call on Government to
recognise this challenge and provide further support to these
potential homeowners.
Our disciplined approach in continuing to acquire land during
the period, supported by our strong balance sheet, has enabled us
to add several high quality sites in desirable locations that
support our expansion plans and position us for future growth. I
would like to thank all Crest Nicholson colleagues for their
ongoing hard work and efforts in delivering today's results.
Analyst and investor meeting, conference call and webcast
There will be a meeting for analysts at 9.00 am today at Norton
Rose Fulbright, 3 More London Riverside, London SE1 2AQ hosted by
Peter Truscott, Chief Executive and Duncan Cooper, Group Finance
Director.
To join the presentation, please use the following link:
https://www.investis-live.com/crest-nicholson/646cbe07796b42130069d620/ndye
There is also a facility to join the presentation and Q&A
session via a conference call. Participants should dial +44 (0)203
936 2999 and use confirmation code 465346. A playback facility will
be available shortly after the presentation has finished.
For further information, please contact:
Crest Nicholson
Jenny Matthews, Head of Investor Relations +44 (0) 7557 842720
Teneo
James Macey White / Giles Kernick +44 (0) 20 7353 4200
8 June 2023
Cautionary statement regarding forward-looking statements
This release may include statements that are, or may be deemed
to be, 'forward-looking statements'. These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms 'believes', 'estimates', 'plans',
'projects', 'anticipates', 'expects', 'intends', 'may', 'will' or
'should' or, in each case, their negative or other variations or
comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These
forward-looking statements include all matters that are not
historical facts. They appear in a number of places throughout this
release and include, but are not limited to, statements regarding
the Group's intentions, beliefs or current expectations concerning,
among other things, the Group's results of operations, financial
position, liquidity, prospects, growth, strategies and expectations
of the industry.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Forward-looking statements are not guarantees of future performance
and the development of the markets and the industry in which the
Group operates may differ materially from those described in, or
suggested by, any forward-looking statements contained in this
release. In addition, even if the development of the markets and
the industry in which the Group operates are consistent with the
forward-looking statements contained in this release, those
developments may not be indicative of developments in subsequent
periods. A number of factors could cause developments to differ
materially from those expressed or implied by the forward-looking
statements including, without limitation, general economic and
business conditions, industry trends, competition, commodity
prices, changes in law or regulation, changes in its business
strategy, political and economic uncertainty. Save as required by
the Listing and Disclosure Guidance and Transparency Rules, the
Company is under no obligation to update the
information contained in this release. Past performance cannot
be relied on as a guide to future performance.
Chief Executive's Statement
Business Review - challenging first half but well set for future
growth
The housing market is undoubtedly experiencing softer demand
than the previous year. As we emerged from the restrictive impacts
of the pandemic, home movers were searching for more space and were
encouraged by the temporary cut in stamp duty. However, by the end
of 2022 the sector was facing the start of a succession of interest
rate rises to combat inflation, with peak rates forecast to reach
their highest level in over 20 years. This was accompanied by the
end of the Help to Buy scheme and a general deterioration in
economic confidence driven by a cost-of-living crisis and fears of
another major adjustment in house prices.
This backdrop was reflected in our 11-week SPOW rate from the
start of our trading year on 1 November 2022 of 0.35 . Our
priorities during this time were to convert our forward order book,
deliver a great customer experience, maintain a sharp focus on
operational efficiency and be disciplined on our cost and capital
commitments.
In line with our own forecasts, the market started to recover as
we entered the spring of 2023. Against a backdrop of rising
interest rates, mortgage availability started to increase and
competition over fewer transactions and new mortgage applications
meant that mortgage rates started to reduce. Customers with good
levels of equity or deposits were able to move with confidence
again.
This improving trading environment ensured we were able to
deliver a first half SPOW rate of 0.54. Cancellation rates have
continued to normalise and pricing has remained robust with minimal
discounting or incentives being offered to achieve this outcome. We
start the second half with a robust forward sales position, as at 2
June 2023 of 2,354 units and GBP597.4m GDV with approximately 85%
of FY23 revenue covered.
Investing for growth - selectively acquiring new sites
Investing in high quality sites is a key driver of our future
growth, whether in our new divisions, Yorkshire and East Anglia, or
our existing ones that focus on Southern England where land supply
is scarce. The Group continues to benefit from a strong balance
sheet which has provided us with operational flexibility and
choices in the way we allocate capital. We continue to believe that
investing for growth is the best way to create value for
shareholders over the medium term.
Our experienced management team have a proven track record in
navigating and managing through evolving economic conditions and
the cyclical nature of the housing market. We made a strategic
decision to be less active in the land market during the summer of
2022 as the market was becoming increasingly competitive.
Following the period of acute economic uncertainty in the autumn
of 2022, most of our housebuilding peers signalled their intention
to withdraw from the land market until stability returned. Given
our perspectives on how we expected the housing market to evolve in
2023, and supported by our strong balance sheet, we made the
decision to re-engage with land sellers and were well placed to
step in and acquire several highly attractive sites in superior
market locations including Windsor and Oxford. We were able to
achieve more favourable economic terms given the decline in demand
and our insistence that sites were valued on prevailing market
assumptions.
Our continued activity in the land market also reflects our
expectation of a likely tightening in the supply of available land
in the future following the Government's decision to eliminate its
top-down housing targets. This has already resulted in delays to
new site allocations in 2023. Additionally, the development control
process that leads to implementable approvals is now increasingly
difficult and complex as under-resourced planning departments are
battling with regulatory requirements. We believe our decision to
remain active in the land market will mean that these delays are
mitigated with a higher number of outlets being in place when
market conditions improve in the future.
During the half year we approved 1,957 plots for purchase at a
forecast gross margin (after sales and marketing expenses) of 26.2%
and have added 1,539 plots to the short-term land portfolio.
Geographical expansion - good progress and on track
We have made good progress with our geographical expansion plans
in the period and are on track with our original expectations.
Yorkshire now has all the necessary functional capabilities in
place and is a fully operational division. We have agreed six sites
in excellent, sought after locations in Yorkshire. These are
expected to contribute to our FY24 financial performance.
In East Anglia, our business leader is similarly establishing a
new team and an office has now been set up in Bury St Edmunds. We
have approved two sites for purchase which are being progressed
with several further opportunities under negotiation.
Build cost inflation and administrative expenses
The first half has seen a high inflationary backdrop which has
impacted our construction costs, in line with the rest of the
sector. In previous years housebuilders have been able to offset
this impact through higher selling prices in an environment of
strong demand. However, in a more benign sales environment this has
not been possible and has consequently impacted our margin
performance in the first half. Overall build cost inflation has
remained at high single digit percentages throughout the
period.
From a materials perspective we have, where possible,
successfully mitigated this impact via centrally negotiated
procurement contracts and if appropriate the use of alternative
materials. Our decision to move to a standard house type range in
2020 has helped insulate these impacts through greater consistency
and scale of purchasing. However, we still have some non-standard
schemes in construction, such as Brightwells Yard, Farnham, which
are more exposed to specific material price movements.
We are starting to see signs of this inflation abating and in
some cases price reductions are now being offered by suppliers.
Blocks, trusses and timber for example have all seen recent
reductions in price. In addition, the general slowdown in
construction activity has helped mitigate some of the materials
shortages experienced last year as supply chains continued to
recalibrate post COVID-19 and in response to the disruption caused
by the Ukraine war.
From a labour and subcontractor perspective we have seen a more
immediate adjustment to lower levels of construction output. Since
the beginning of 2023, we have seen a much greater volume of tender
returns and competitive rates increasingly being offered. Again,
the lower level of construction activity has helped cushion the
impact caused by the shortage of skilled labour in recent
years.
We expect build cost inflation will continue to moderate in the
second half in line with broader economic forecasts.
At our preliminary results in January 2023, we outlined that our
administrative expenses would grow by over 10.0% in FY23 compared
to FY22. This increase has been driven by investments in two new
divisions to support our geographical expansion, resources
dedicated to successfully complying with the new quality and
customer standards and broader regulatory changes and technology
upgrades. We have also chosen to give our colleagues a pay increase
which recognised the inflationary backdrop and cost of living
crisis. We remain committed to our strategic priority of
operational efficiency and are always looking for ways to work more
productively. We now expect FY23 administrative expenses to be
circa GBP60.0m.
Building safety
As a consequence of signing the Developer Remediation Contract
on 13 March 2023, the Group has now become legally responsible for
the identification and remediation of those buildings it has
developed with possible life-critical fire safety defects. The
Group is currently working on circa 90 buildings in various stages
of design, procurement and works and managed to recover GBP11.1m
from third parties during the period in respect of defective design
and workmanship.
Sustainability
Our sustainability strategy is split into three priority areas -
protect the environment, make a positive impact on our communities
and operate the business responsibly. These three priority areas
guide our commitment to drive positive action across our activities
and value chain and we continue to make good progress against our
sustainability targets.
An area of focus in HY23 has included a continued drive to
reduce greenhouse gas emissions assisted by improved management
reporting, a gradual increase in the use of hydrotreated vegetable
oil (HVO) to power plant and equipment, a continued increase in the
procurement of renewable electricity tariffs and developing
solutions to achieve the Future Homes Standard.
People
We are pleased to announce that Crest Nicholson has been
accredited as a Living Wage Employer. This is a significant step
towards our commitment to our employees' well-being and directly
aligns with our values and aspirations for fairness and social
responsibility. The Real Living Wage exceeds the Government's
National Minimum Wage, is independently calculated based on the
cost of living, and extends to all direct Crest Nicholson employees
and subcontractors.
Capital allocation and dividend policy
The Group communicated its long-term investment proposition at
its Capital Markets Day in October 2021. Creating value for all
stakeholders is centred on:
- Maintain a robust balance sheet
- Geographical expansion
- Sustainable dividend policy
- Capital efficiency
At the time the Group announced it was opening two new divisions
in Yorkshire and East Anglia and committed to announcing a third
new division in FY24. Following the rapid deterioration in the
economic backdrop in the autumn of 2022, coupled with the
increasingly challenging planning environment and ability to secure
new sites, the Group announced in November 2022 that it was taking
the decision to defer the opening of a third new division for the
foreseeable future.
The Board remains confident that the best way to create value
for shareholders is to expand the Group's operations, and to give
more customers in the UK the chance to own a Crest Nicholson home.
This conviction is reflected in the investments the Group has made
in HY23 to successfully launch its operations in Yorkshire and East
Anglia.
However, the Board also recognises the importance of dividend
payments to shareholders and has carefully considered the market
outlook and current financial position. Although the housing market
is softer than in previous years, the market fundamentals remain
strong, and the Group has managed to secure the land it needs for
its medium-term growth aspirations while maintaining a robust
financial position. Given this backdrop the Board will hold the
dividend payment at the same level as FY22, paying 17.0 pence per
ordinary share for FY23.
Outlook
We have successfully navigated a difficult first half and
continue to lay the foundations for future growth. Our decision to
remain active in the land market was the right one. We now have a
land pipeline to deliver our growth ambitions over the medium term,
including our expansion into new geographies. We expect the second
half trading environment to be more stable and conducive to moving
home. Employment levels remain good, inflation should start to
recede and economic growth forecasts continue to be revised
upwards. However, if interest rates continue to rise, and remain
elevated for a sustained period of time, this will undoubtedly
start to impact demand and confidence again.
A strong and vibrant housing market is in everyone's interests.
The Group continues to participate in active dialogue with
Government to highlight the challenges in both the planning
environment as well as affordability for first time buyers and
remains hopeful that political solutions can be deployed to address
both in the near term.
Despite the lower first half contribution compared to the prior
year, and assuming that trading conditions remain stable in the
second half, we expect FY23 adjusted profit before tax to be line
with published consensus of GBP73.7m.
Financial Review
Completions and revenue
During the first half open market (private) completions were 532
(HY22: 754), affordable completions were 247 (HY22: 184) and bulk
completions were 115 (HY22: 158). Total home completions were
therefore 894 (HY22: 1,096), down 18.4%, reflecting the economic
uncertainty and fall in confidence in the housing market in the
period.
Open market (private) average selling price (ASP) increased
slightly to GBP433k (HY22: GBP409k), up 5.9%. This reflects the
effect of the continuing inflation of average selling prices in the
second half of the prior year which started to ease in HY23 as
inflation became broadly neutral. Pricing is remaining robust due
to the lack of available housing stock to purchase and the
improving economic conditions as the half progressed.
Affordable ASP was in line with prior year at GBP179k (HY22:
GBP179k) and bulk ASP was 2.8% lower at GBP273k (HY22:
GBP281k).
Sales
Sales rates as measured by SPOW, were 0.54 for the first half
compared to 0.72 in the prior half. The economic uncertainty that
followed the mini-budget in September 2022 had an immediate impact
on prospective home movers' confidence levels. Against an already
rising interest rate backdrop, forecasts of peak mortgage rates
being their highest in over 20 years and widespread commentary
suggesting the housing market would undergo a significant pricing
adjustment, saw housing transactions contract sharply as customers
adopted a more cautious position. As the Group traded through the
spring of 2023 sales rates started to improve as mortgage
availability remained good, available housing stock continued to be
limited and pricing was robust.
Average sales outlets were 48 (HY22: 58) in the first half. The
strong demand environment of the past two years has depleted most
housebuilders land portfolios and led to a reduction in outlets. At
a time when acquiring new land has been necessary to support future
supply, the economic and market uncertainty has actually led to a
lower risk appetite for more land. In addition, those sites that
are planned for development are taking longer to progress to
operational development because of other issues such as
environmental impacts associated with water neutrality and
nutrients.
Forward sales as at 2 June 2023 of 2,354 units and GBP597.4m GDV
(10 June 2022: 2,891 units and GBP814.9m GDV ) with approximately
85% of FY23 revenue covered.
Operating profit and margin
Adjusted operating profit fell 59.4% to GBP22.1m (HY22:
GBP54.5m), with adjusted operating profit margin also falling to
7.8% (HY22: 15.0%).
The Group recorded a lower number of legal completions in the
first half reflecting the challenging trading environment and
economic uncertainty. While demand started to recover in the spring
of 2023 it has remained at a lower level than in previous years. In
addition, those lower housing transaction levels have also seen
neutral levels of house price inflation, which in previous years
has offset or surpassed the build cost inflation also being
experienced. The combination of a lower number of completions,
persistent build cost inflation and no selling price growth has
reduced gross profit and gross margin in HY23 compared to prior
year, which in turn has reduced adjusted operating profit and
margin as well.
At 31 October 2022 the Group held a GBP12.6m NRV provision
relating to several unprofitable legacy schemes. During the half, a
further GBP3.2m NRV charge was recorded, principally related to the
Group's scheme at Brightwell's Yard, Farnham. This scheme has
previously been highlighted as being unprofitable. It is a complex,
urban regeneration and mixed-use development scheme. During the
half costs to complete on the scheme increased and hence a further
charge was necessary. At 30 April 2023 the Group's remaining NRV
provision was GBP14.6m, of which GBP11.6m relates to Farnham.
Approximately a fifth of this provision is currently forecast to be
utilised in the second half. This additional NRV charge in the half
also contributed to the decline in adjusted operating margin.
Finally, the Group recorded net administrative expenses of
GBP28.3m (HY22: GBP20.7m) in the first half, an increase of 36.7%
on prior year. The drivers for this increase were highlighted at
the Group's Preliminary Results in January 2023 and include
additional resources to drive the geographical expansion plans,
further investments into customer service and quality roles and
processes, IT system upgrades and readying the Group for various
regulatory and compliance changes. Although this increase is
significant compared to the prior half it is comparable in
magnitude terms to the second half of the prior year, when
administrative expenses had recovered to a more normalised level
post the pandemic. Accordingly, the Group expects FY23 net
administrative expenses to be around GBP60.0m, nearly 8% below the
FY19 charge for the Group despite the additional activity burden
highlighted above. This movement has also contributed to a
reduction in adjusted operating margin.
Operating profit after a net exceptional credit of GBP7.5m for
the first half was GBP30.7m (HY22: GBP50.5m operating loss after an
exceptional charge of GBP105.0m).
Exceptional items
As a consequence of signing the Developer Remediation Contract
on 13 March 2023, the Group has now become legally responsible for
the identification and remediation of those buildings it has
developed with possible life-critical fire safety defects. The
Group is currently working on circa 90 buildings in various stages
of design, procurement and works. During the half the Group
recorded a further GBP1.4m charge to adjust its provision to
reflect the latest estimate of costs to complete these remedial
works. GBP11.1m was also received from third parties in respect of
defective design and workmanship.
Tax charge on exceptional items is GBP2.0m (HY22: GBP22.4m
credit).
Further detail on exceptional items can be found in note 5 and
note 12 of the condensed consolidated financial statements.
Financing and liquidity
At 30 April 2023 the Group had net cash of GBP66.2m (HY22:
GBP173.3m). Net debt including land creditors was GBP82.0m (HY22:
GBP6.6m). Average net cash during the period was GBP104.2m (HY22:
GBP98.6m). Return on capital employed (ROCE) for the first half was
14.6% (HY22: 18.3%) reflecting the lower adjusted operating profit
compared to prior year and the lower net cash position on the
balance sheet.
The Group has steadily rebuilt its financial position since 2019
and communicated a clear capital allocation framework at its
Capital Markets Day in October 2021. This has been reflected
throughout our business including in our decision to remain active
in the land market in the first half as we believe this is the best
way to create future value for shareholders. However, given our
confidence in the long-term fundamentals of the housing market, and
its relative resilience through the economic uncertainty of the
first half, we are also pleased to be able to maintain the same
level of dividend as HY22.
Pension
The Group operates a defined benefit pension scheme. At 30 April
2023 the retirement benefit surplus under IAS 19 was GBP14.1m
(HY22: GBP35.4m).
Taxation
The effective tax rate applied to profit before tax for the
period was 25.7% (HY22: 19.6%). This reflects the best estimate of
the weighted average annual effective tax rate which is expected to
apply to the Group for the year ending 31 October 2023. Over the
next two years the Group's effective tax rate will increase in line
with the statutory rate increases and also reflects the effect of
the Residential Property Developer Tax (RPDT) of 4.0%, effective
from 1 April 2022.
Earnings per share
Adjusted basic earnings per share was 6.1 pence (HY22: 15.7
pence), reflecting the decrease in the Group's earnings on prior
year. Basic earnings per share was pence 8.2 pence (HY22: loss per
share 16.5 pence), as the GBP105.0m exceptional charge relating to
combustible materials in HY22 was not repeated in the half.
Dividend
The Board has declared an interim dividend of 5.5 pence per
share, payable on 13 October 2023 to shareholders on the register
on 22 September 2023. The dividend represents approximately one
third of the dividend expected to be paid in respect of the
financial year ending 31 October 2023.
Land and planning
During the first half the Group approved 1,957 plots for
purchase at a forecast gross margin of 26.2% after sales and
marketing costs.
At 30 April 2023 the short-term land portfolio includes 15,011
(FY22: 14,250) plots. 1,539 plots were added in the half. The
Group's strategic land portfolio ended the half with 22,461 (FY22:
22,450) plots meaning the total land portfolio at 30 April 2023 was
37,472 plots (FY21: 36,700). The total GDV of the portfolio is
GBP12.5bn (FY22: GBP12.3bn).
The Group has been able to add several high quality sites to the
short-term land portfolio in the first half which position it well
for growth in FY24 and beyond. The withdrawal from the land market
from many of our major peers has enabled the Group to step in and
secure terms on several sites with competitive financial metrics.
In turn, this has led to land agents and sellers deciding to wait
until greater demand returns and accordingly we expect the lack of
available supply, and appetite for outlet growth from developers,
will mean that the land market remains highly competitive for the
foreseeable future.
Principal Risks and Uncertainties
The Group's financial and operational performance and reputation
is subject to a number of potential risks and uncertainties. These
risks could, either separately or in combination, have a material
impact on the Group's performance and shareholder returns.
Our divisional boards consider their divisional risk registers
on a half-yearly basis. The divisional risk reviews, alongside the
Group's principal and emerging risks are carefully considered by
the Executive Leadership Team. Both the Audit and Risk Committee
and the Board have oversight of the Group's emerging and principal
risks.
We have continued to face political uncertainty and economic
headwinds which has led to significant increases in mortgage rates
and a slowdown in the housing market. This has affected housing
buying affordability and reservation activity. We have also seen
continued build cost inflation through raw material prices and
subcontractor pricing. There have also been continued challenges in
the planning environment. These areas impact a number of the
Group's principal risks including market conditions, build cost
management and land availability and planning, although there are
clear mitigations and actions to address these risks.
Our principal risks are unchanged from those set out on pages 58
to 64 of the Company's Annual Integrated Report for the year ended
31 October 2022.
Statement of Directors' Responsibilities
The Directors confirm that these condensed consolidated half
year financial statements have been prepared in accordance with
International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the United Kingdom and that the interim
management report includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8, namely:
- an indication of important events that have occurred during
the first six months and their impact on the condensed set of
financial statements, and a description of the principal risks
and uncertainties for the remaining six months of the financial
year; and
- material related-party transactions in the first six months
and any material changes in the related party transactions described
in the last Annual Integrated Report.
The current Directors of Crest Nicholson Holdings plc are listed
in the Annual Integrated Report for the year ended 31 October
2022.
A list of Directors is maintained on the Crest Nicholson
website: www.crestnicholson.com.
By order of the Board
Peter Truscott
Chief Executive
8 June 2023
CREST NICHOLSON HOLDINGS PLC
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 30 APRIL 2023
CONDENSED CONSOLIDATED INCOME STATEMENT
Half Half Half Half Half Half Full Full Full
Note year year ended year year year ended year year year ended year
ended ended ended ended ended ended
30 April 30 April 30 30 April 30 April 30 31 October 31 October 31
April April October
2023 2023 2023 2022 2022 2022 2022 2022 2022
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
Exceptional Exceptional Pre-exceptional Exceptional
items items item item (note
Pre-exceptional (note Pre-exceptional (note 5)
items 5) Total items 5) Total Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 4 282.7 - 282.7 364.3 - 364.3 913.6 - 913.6
Cost of sales (232.1) 8.6 (223.5) (286.8) (105.0) (391.8) (719.3) (102.5) (821.8)
---------------- ------------ ---------- ---------------- ------------ ---------- ---------------- ------------ --------
Gross
profit/(loss) 50.6 8.6 59.2 77.5 (105.0) (27.5) 194.3 (102.5) 91.8
Net
administrative
expenses 6 (28.3) - (28.3) (20.7) - (20.7) (51.1) - (51.1)
Net impairment
losses on
financial
assets (0.2) - (0.2) (2.3) - (2.3) (2.3) - (2.3)
---------------- ------------ ---------- ---------------- ------------ ---------- ---------------- ------------ --------
Operating
profit/(loss) 6 22.1 8.6 30.7 54.5 (105.0) (50.5) 140.9 (102.5) 38.4
Finance income 2.0 - 2.0 1.3 - 1.3 3.1 - 3.1
Finance expense (4.5) (2.2) (6.7) (5.2) - (5.2) (10.2) (1.0) (11.2)
---------------- ------------ ---------- ---------------- ------------ ---------- ---------------- ------------ --------
Net finance
expense (2.5) (2.2) (4.7) (3.9) - (3.9) (7.1) (1.0) (8.1)
Share of
post-tax
result of
joint ventures
using the
equity method 1.3 1.1 2.4 1.9 - 1.9 4.0 (1.5) 2.5
---------------- ------------ ---------- ---------------- ------------ ---------- ---------------- ------------ --------
Profit/(loss)
before tax 20.9 7.5 28.4 52.5 (105.0) (52.5) 137.8 (105.0) 32.8
Income tax
(expense)/credit 7 (5.3) (2.0) (7.3) (12.1) 22.4 10.3 (28.8) 22.4 (6.4)
Profit/(loss)
for the period
attributable
to equity
shareholders 15.6 5.5 21.1 40.4 (82.6) (42.2) 109.0 (82.6) 26.4
---------------- ------------ ---------- ---------------- ------------ ---------- ---------------- ------------ --------
Earnings/(loss)
per ordinary
share
Basic 8 6.1p 8.2p 15.7p (16.5)p 42.5p 10.3p
Diluted 8 6.1p 8.2p 15.7p (16.5)p 42.3p 10.2p
CREST NICHOLSON HOLDINGS PLC
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 30 APRIL 2023
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Half year Half year Full
ended ended year ended
30 April 30 April 31 October
2023 Unaudited 2022 Unaudited 2022
Audited
GBPm GBPm GBPm
Profit/(loss) for the period attributable
to equity shareholders 21.1 (42.2) 26.4
Other comprehensive income/(expense):
Items that will not be reclassified
to the consolidated income statement:
Actuarial gains/(losses) of defined
benefit schemes 2.5 16.4 (8.4)
Change in deferred tax on actuarial
gains/(losses) of defined benefit schemes (0.7) (5.6) 1.6
--------------- --------------- ------------
Other comprehensive income/(expense)
for the period net of income tax 1.8 10.8 (6.8)
--------------- --------------- ------------
Total comprehensive income/(expense)
for the period attributable to equity
shareholders 22.9 (31.4) 19.6
--------------- --------------- ------------
C REST NICHOLSON HOLDINGS PLC
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 30 APRIL 2023
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Retained Total
capital premium earnings
account
GBPm GBPm GBPm GBPm
Half year ended 30 April 2023 (Unaudited)
Balance at 1 November 2022 12.8 74.2 796.1 883.1
Profit for the period attributable
to equity shareholders - - 21.1 21.1
Actuarial gains of defined benefit
schemes - - 2.5 2.5
Change in deferred tax on actuarial
gains of defined benefit schemes - - (0.7) (0.7)
--------- --------- ---------- -------
Total comprehensive income for the
period - - 22.9 22.9
Transactions with shareholders:
Equity-settled share-based payments - - 1.0 1.0
Deferred tax on equity-settled share-based
payments - - 0.1 0.1
Purchase of own shares - - (1.0) (1.0)
Dividends paid - - (29.5) (29.5)
--------- --------- ---------- -------
Balance at 30 April 2023 12.8 74.2 789.6 876.6
--------- --------- ---------- -------
Share Share Retained Total
capital premium earnings
account
GBPm GBPm GBPm GBPm
Half year ended 30 April 2022 (Unaudited)
Balance at 1 November 2021 12.8 74.2 814.6 901.6
Loss for the period attributable
to equity shareholders - - (42.2) (42.2)
Actuarial gains of defined benefit
schemes - - 16.4 16.4
Change in deferred tax on actuarial
gains of defined benefit schemes - - (5.6) (5.6)
--------- --------- ---------- -------
Total comprehensive expense for
the period - - (31.4) (31.4)
Transactions with shareholders:
Equity-settled share-based payments - - 1.2 1.2
Deferred tax on equity-settled share-based
payments - - (0.3) (0.3)
Purchase of own shares - - (0.4) (0.4)
Dividends paid - - (24.4) (24.4)
--------- --------- ---------- -------
Balance at 30 April 2022 12.8 74.2 759.3 846.3
--------- --------- ---------- -------
Share Share Retained Total
capital premium earnings
account
GBPm GBPm GBPm GBPm
Year ended 31 October 2022 (Audited)
Balance at 1 November 2021 12.8 74.2 814.6 901.6
Profit for the year attributable
to equity shareholders - - 26.4 26.4
Actuarial losses of defined benefit
schemes - - (8.4) (8.4)
Change in deferred tax on actuarial
losses of defined benefit schemes - - 1.6 1.6
--------- --------- ---------- -------
Total comprehensive income for the
year - - 19.6 19.6
Transactions with shareholders:
Equity-settled share-based payments - - 1.9 1.9
Deferred tax on equity-settled share-based
payments - - (0.4) (0.4)
Purchase of own shares - - (1.1) (1.1)
Dividends paid - - (38.5) (38.5)
--------- --------- ---------- -------
Balance at 31 October 2022 12.8 74.2 796.1 883.1
--------- --------- ---------- -------
CREST NICHOLSON HOLDINGS PLC
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 30 APRIL 2023
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note As at As at As at
30 April 30 April 31 October
2023 2022 2022
Unaudited Unaudited Audited
ASSETS GBPm GBPm GBPm
Non-current assets
Intangible assets 29.0 29.0 29.0
Property, plant and equipment 2.2 1.0 0.9
Right-of-use assets 4.7 2.8 3.7
Investments in joint ventures 10.4 8.0 9.0
Financial assets at fair value
through profit and loss 1.4 2.7 3.3
Deferred tax assets 4.4 5.1 4.8
Retirement benefit surplus 14.1 35.4 11.1
Trade and other receivables 14.1 32.7 35.0
---------- ---------- -----------
80.3 116.7 96.8
---------- ---------- -----------
Current assets
Inventories 10 1,108.1 1,129.6 990.1
Financial assets at fair value
through profit and loss 2.7 2.1 1.3
Trade and other receivables 104.4 102.6 116.3
Current income tax receivable 3.2 17.4 1.1
Cash and cash equivalents 11 163.6 271.6 373.6
---------- ---------- -----------
1,382.0 1,523.3 1,482.4
---------- ---------- -----------
Total assets 1,462.3 1,640.0 1,579.2
---------- ---------- -----------
LIABILITIES
Non-current liabilities
Interest-bearing loans and borrowings 11 (97.4) (98.3) (97.1)
Trade and other payables (42.4) (50.6) (41.8)
Lease liabilities (3.1) (2.0) (2.3)
Deferred tax liabilities (4.1) (10.2) (3.2)
Provisions 12 (67.9) (82.1) (70.8)
---------- ---------- -----------
(214.9) (243.2) (215.2)
---------- ---------- -----------
Current liabilities
Trade and other payables (296.8) (484.5) (407.1)
Lease liabilities (1.7) (1.7) (1.6)
Provisions 12 (72.3) (64.3) (72.2)
---------- ---------- -----------
(370.8) (550.5) (480.9)
---------- ---------- -----------
Total liabilities (585.7) (793.7) (696.1)
---------- ---------- -----------
Net assets 876.6 846.3 883.1
---------- ---------- -----------
EQUITY
Share capital 15 12.8 12.8 12.8
Share premium account 15 74.2 74.2 74.2
Retained earnings 789.6 759.3 796.1
---------- ---------- -----------
Total equity 876.6 846.3 883.1
---------- ---------- -----------
Crest Nicholson Holdings plc Registered number 6800600. These
condensed consolidated half year financial statements were approved
by the Board of Directors on 8 June 2023.
CREST NICHOLSON HOLDINGS PLC
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 30 APRIL 2023
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Half year Half year Full year
ended ended ended
30 April 30 April 31 October
2023 2022 2022
Unaudited Unaudited Audited
GBPm GBPm GBPm
Cash flows from operating activities
Profit/(loss) for the period attributable
to equity shareholders 21.1 (42.2) 26.4
Adjustments for:
Depreciation on property, plant and equipment 0.2 0.3 0.4
Depreciation on right-of-use assets 1.1 0.7 1.9
Retirement benefit obligation administrative
expenses 0.5 - 0.9
Net finance expense 4.7 3.9 8.1
Share-based payment expense 1.0 1.2 1.9
Share of post-tax result of joint ventures
using the equity method (2.4) (1.9) (2.5)
Impairment of inventories movement 2.0 (8.5) (8.1)
Net impairment of financial assets 0.2 2.3 2.3
Income tax expense/(credit) 7.3 (10.3) 6.4
--------- --------- ----------
Operating profit/(loss) before changes in
working capital, provisions and contribution
to retirement benefit obligations 35.7 (54.5) 37.7
Decrease/(increase) in trade and other
receivables 34.2 6.7 (17.0)
(Increase)/decrease in inventories (120.0) (83.6) 55.5
(Decrease)/increase in trade and other
payables, and provisions (114.6) 79.9 (13.4)
Contribution to retirement benefit obligations (0.7) (2.6) (3.4)
--------- --------- ----------
Cash (used by)/generated from operations (165.4) (54.1) 59.4
Finance expense paid (2.9) (3.2) (6.3)
Income tax paid (8.8) (1.4) (1.4)
Net cash (outflow)/inflow from operating
activities (177.1) (58.7) 51.7
--------- --------- ----------
Cash flows from investing activities
Purchases of property, plant and equipment (1.5) (0.1) (0.1)
Disposal of financial assets at fair value
through profit and loss 0.3 0.3 0.7
Dividends received from joint ventures - 0.9 2.4
Funding to joint ventures (4.4) (3.4) (7.5)
Repayment of funding from joint ventures 3.4 7.5 18.8
Finance income received 1.1 - 0.1
--------- --------- ----------
Net cash (outflow)/inflow from investing
activities (1.1) 5.2 14.4
--------- --------- ----------
Cash flows from financing activities
Principal elements of lease payments (1.3) (0.8) (2.1)
Dividends paid (29.5) (24.4) (38.5)
Purchase of own shares (1.0) (0.4) (1.1)
Debt arrangement and facility fees - - (1.5)
--------- --------- ----------
Net cash outflow from financing activities (31.8) (25.6) (43.2)
--------- --------- ----------
Net (decrease)/increase in cash and cash
equivalents (210.0) (79.1) 22.9
Cash and cash equivalents at the beginning
of the period 373.6 350.7 350.7
Cash and cash equivalents at end of the period 163.6 271.6 373.6
========= ========= ==========
CREST NICHOLSON HOLDINGS PLC
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 30 APRIL 2023
NOTES TO THE CONDENSED CONSOLIDATED HALF YEAR FINANCIAL
STATEMENTS (unaudited)
1 BASIS OF PREPARATION
Crest Nicholson Holdings plc (the Company) is a public limited
company incorporated, listed and domiciled in the UK. The address
of the registered office is 500 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2HJ. The condensed consolidated half
year financial statements consolidate the results of the Company
and its subsidiaries (together referred to as the Group) and
include the Group's interest in jointly controlled entities.
These condensed consolidated half year financial statements for
the six months ended 30 April 2023 have been prepared in accordance
with the Disclosure Guidance and Transparency Rules of the UK
Financial Conduct Authority and with UK-adopted International
Accounting Standard 34 'Interim financial reporting'. These
condensed consolidated half year financial statements do not
include all of the information required for full annual
consolidated financial statements and should be read in conjunction
with the Group's Annual Integrated Report for the year ended 31
October 2022, which has been prepared in accordance with UK-adopted
international accounting standards in conformity with the
requirements of the Companies Act 2006.
These condensed consolidated half year financial statements do
not constitute statutory financial statements within the meaning of
Section 434 of the Companies Act 2006. Statutory financial
statements for the year ended 31 October 2022 were approved by the
Board of Directors on 17 January 2023 and delivered to the
Registrar of Companies. The report of the auditor on those accounts
was (i) unqualified, (ii) did not include a reference to any
matters to which the auditor drew attention by way of emphasis
without qualifying their report, and (iii) did not contain a
statement under section 498 (2) or (3) of the Companies Act
2006.
These condensed consolidated half year financial statements are
unaudited but have been reviewed by PricewaterhouseCoopers LLP, the
Company's auditors in accordance with International Standard on
Review Engagements (UK) 2410 'Review of Interim Financial
Information performed by the Independent Auditor of the Entity',
issued by the Auditing Practices Board. The auditor's review report
for the period to 30 April 2023 is set out below.
Going Concern
The Directors have considered the impact of the Group's current
principal risks and uncertainties to confirm the appropriateness of
the going concern assumption in these condensed consolidated half
year financial statements. The Directors do not consider that any
material or significant changes have occurred to the risks
identified and outlined in the Group's Annual Integrated Report for
the year ended 31 October 2022, and as discussed in the Financial
Review.
The Group benefits from a GBP250.0m revolving credit facility,
which expires October 2026, and GBP100.0m of senior loan notes,
which mature between 2024 and 2029. Both of these arrangements are
subject to three financial covenant tests. The Group was compliant
with all three tests throughout the six month period ended 30 April
2023.
At 30 April 2023 the Group had net cash of GBP66.2m (HY22:
GBP173.3m). Given this strong liquidity position the Directors
consider the impact of breaching one of its covenants as being the
first indication that the Group could be in distress and should be
the basis of assessing its going concern basis.
The base case scenario for the going concern assessment is the
Group's latest forecast, which reflects current market experience
and is reviewed by the Directors periodically. The Directors have
then considered a severe but plausible downside scenario that
stress tests whether the Group would remain compliant with its
covenants as a result of some principal risks starting to
crystallise:
Severe but plausible downside case
The following assumptions were applied in combination to the
base case without double counting:
-- An immediate reduction in new reservations to a sales per
outlet week of 0.37 (HY23 SPOW was 0.54)
-- An immediate 12.0% fall in forecast average selling
prices
In assessing the impact of this severe but plausible downside
scenario, the Directors have also assessed the extent of available
mitigating actions within the Group's control which would offset
the deterioration in financial performance. These mitigating
actions could be enacted in good time, and are consistent with
those disclosed in the Group's 2022 Annual Integrated Report.
Conclusion on going concern
In reviewing the assessment outlined above the Directors are
confident that the Group has the necessary resources and
mitigations available to continue trading for at least 12 months
from the date of approval of the condensed consolidated half year
financial statements. Accordingly, the condensed consolidated half
year financial statements continue to be prepared on a going
concern basis.
Critical accounting estimates and judgements
The preparation of the condensed consolidated half year
financial statements under IFRS requires the Directors to make
estimates and assumptions that affect the application of policies
and reported amounts of assets and liabilities, income and expenses
and related disclosures. In applying the Group's accounting
policies, the key judgements that have a significant impact on the
financial statements, including those involving estimates, are as
follows; the judgement to present certain items as exceptional (see
note 5), certain revenue policies relating to part exchange sales,
the identification of performance obligations where a revenue
transaction involves the sale of both land and residential units
with revenue on the units subsequently recognised over time and the
recognition of the defined benefit pension scheme surplus.
The Group has made a judgement to not recognise revenue on the
proceeds received on the disposal of properties taken in part
exchange against a new property as they are incidental to the main
revenue-generating activities of the Group. As part exchange sales
are deemed incidental, the income and expenses associated with part
exchange properties are recognised in other operating income and
other operating expenses which are presented within net
administrative expenses in the condensed consolidated income
statement. Income is recognised when legal title is passed to the
customer. Previously the income and associated costs arising on
these sales was presented net within cost of sales. Previous
periods have not been restated since the net result is immaterial
to the Group and there is no change to the operating profit/(loss)
realised in each period.
Estimates and associated assumptions affecting the financial
statements are based on historical experience and various other
factors that are believed to be reasonable under the circumstances.
The estimates and underlying assumptions are reviewed on an ongoing
basis. Changes in accounting estimates may be necessary if there
are changes in the circumstances on which the estimate was based or
as a result of new information.
Revisions to accounting estimates are recognised in the period
in which the estimate is revised if the revision affects only that
period, or in the period of revision and future period if the
revision affects both current and future periods.
The Directors have made estimates and assumptions in reviewing
the going concern assumption as detailed above. The Directors
consider the key sources of estimation uncertainty that have a risk
of causing a material adjustment to the carrying value of assets
and liabilities are the carrying value of inventories, estimation
of development profitability, valuation of the pension scheme
assets and liabilities and the valuation of the combustible
materials provision. These are detailed within the Group's
consolidated financial statements for the year ended 31 October
2022.
Accounting policies
The principal accounting policies adopted in the condensed
consolidated half year financial statements are consistent with
those applied by the Group in its consolidated financial statements
for the year ended 31 October 2022 except in respect of taxation
which is based on the expected effective tax rate that would be
applicable to expected annual earnings and part exchange income and
associated costs as disclosed within critical accounting estimates
and judgements.
Adoption of new and revised standards
There are no new standards, amendments to standards and
interpretations that are applicable to the Group and are mandatory
for the first time for the financial year beginning 1 November 2022
which have a material impact on the Group.
Alternative performance measures
The Group has adopted various Alternative Performance Measures
(APM), as presented below. These measures are not defined by IFRS
and therefore may not be directly comparable with other companies'
APM, and should be considered in addition to, and are not intended
to be a substitute for, or superior to, IFRS measurements.
2 SEGMENTAL REPORTING
The Executive Leadership Team (ELT), as disclosed in the Group's
consolidated financial statements for the year ended 31 October
2022 on page 72 is accountable to the Board and has been identified
as the chief operating decision-maker for the purposes of
determining the Group's operating segments. The ELT approves
investment decisions, allocates group resources and performs
divisional performance reviews. The Group operating segments are
considered to be its divisions, each of which has its own
management board. All divisions are engaged in residential-led,
mixed use developments in the United Kingdom and therefore, with
consideration of relevant economic indicators such as the nature of
the products sold and customer base, and, having regard to the
aggregation criteria in IFRS 8, the Group identifies that it has
one reportable operating segment.
3 SEASONALITY
In common with the rest of the UK housebuilding industry,
activity occurs throughout the year, with peaks in sale completions
in spring and autumn. This creates seasonality in the Group's
trading results and working capital.
4 REVENUE
Half year Half year Full year
ended ended ended
30 April 30 April 31 October
2023 2022 2022
Revenue type GBPm GBPm GBPm
Open market housing including specification
upgrades 235.7 328.3 803.7
Affordable housing 42.1 19.6 76.9
--------- --------- ----------
Total housing 277.8 347.9 880.6
Land and commercial sales 4.9 15.5 32.0
Freehold reversions - 0.9 1.0
--------- --------- ----------
Total revenue 282.7 364.3 913.6
--------- --------- ----------
Half year Half year Full year
ended ended ended
30 April 30 April 31 October
2023 2022 2022
Timing of revenue recognition GBPm GBPm GBPm
Revenue recognised at a point in time 242.8 342.5 842.6
Revenue recognised over time 39.9 21.8 71.0
--------- --------- ----------
Total revenue 282.7 364.3 913.6
--------- --------- ----------
5 EXCEPTIONAL ITEMS
Exceptional items are those which, in the opinion of the
Directors, are material by size and/or non-recurring in nature and
therefore require separate disclosure within the condensed
consolidated income statement in order to assist the users of the
financial statements to better understand the performance of the
Group, which is also how the Directors internally manage the
business. Where appropriate, the Directors consider that items
should be considered as categories or classes of items, such as any
credits/costs impacting the condensed consolidated income statement
which relate to combustible materials, notwithstanding where an
item may be individually immaterial. Where appropriate, a material
reversal of these amounts will be reflected through exceptional
items.
Exceptional items for the half year ended 30 April 2023 relate
to the same category of items recognised in previous financial
periods.
Half year Half year Full year
ended ended ended
30 April 30 April 31 October
2023 2022 2022
Cost of sales GBPm GBPm GBPm
Combustible materials charge 1.4 105.0 102.5
Combustible materials credit (10.0) - -
--------- --------- ----------
Net combustible materials (credit)/charge (8.6) 105.0 102.5
Net finance expense
Combustible materials imputed interest 2.2 - 1.0
Share of post-tax loss of joint ventures
Combustible materials (credit)/charge of
joint ventures (1.1) - 1.5
Total exceptional (credit)/charge (7.5) 105.0 105.0
Tax charge/(credit) on exceptional (credit)/charge 2.0 (22.4) (22.4)
--------- --------- ----------
Total exceptional (credit)/charge after
tax charge/(credit) (5.5) 82.6 82.6
--------- --------- ----------
Net combustible materials (credit)/charge
As a consequence of signing the Developer Remediation Contract
on 13 March 2023, the Group has now become legally responsible for
the identification and remediation of those buildings it has
developed with possible life-critical fire safety defects. The
Group is currently working on circa 90 buildings in various stages
of design, procurement and works. The combustible materials charge
represents forecast changes in build costs and in the provision
discount. The Group has recovered GBP10.0m from third parties in
the period in respect of
defective design and workmanship. See note 12 for additional information.
Net finance expense
The combustible materials imputed interest reflects the unwind
of the imputed interest on the provision to reflect the time value
of the liability.
Share of post-tax loss of joint ventures
The combustible materials (credit)/charge of joint ventures
represents the Group's share of exceptional combustibles materials
(credit)/charge in its joint venture Crest Nicholson Bioregional
Quintain LLP. The joint venture recognised a provision in the prior
period and the current period credit represents a recovery from
third parties.
Taxation
An exceptional income tax charge of GBP2.0m (30 April 2022:
credit of GBP22.4m, 31 October 2022: credit of GBP22.4m) has been
recognised in relation to the above exceptional items using the
actual tax rate applicable to these items.
6 NET ADMINISTRATIVE EXPENSES AND OPERATING PROFIT/(LOSS)
Operating profit of GBP30.7m (30 April 2022: operating loss of
GBP50.5m, 31 October 2022: GBP38.4m) from continuing activities is
stated after (crediting)/charging:
Half year Half year Full year
ended ended ended
30 April 30 April 31 October
2023 2022 2022
GBPm GBPm GBPm
Administrative expenses 28.2 20.7 51.1
Other operating income (13.7) (20.1) (48.9)
Other operating expenses 13.8 19.5 47.4
----------
Net administrative expenses 28.3
----------
Other operating income and other operating expenses shown above
relate to the income and associated costs arising on the sale of
part exchange properties. For the half year ended 30 April 2023,
both the income and associated costs of these sales has been
presented within net administrative expenses in the condensed
consolidated income statement. Previously the income and associated
costs arising on these sales was included within cost of sales.
Previous periods have not been restated since the net result is
immaterial to the Group and there is no change to the operating
profit/(loss) realised in each period.
7 TAXATION
The rate of taxation on profit for the half year ended 30 April
2023 is 25.7% (30 April 2022: 19.6%, 31 October 2022: 19.5%) and
reflects the best estimate of the weighted average annual effective
tax rate which is expected to apply to the Group for the year
ending 31 October 2023. The change in the Group's effective tax
rate reflects the increase in the statutory tax rate and the full
year effect of the Residential Property Developer Tax. This
calculation uses rates substantively enacted by 30 April 2023 as
required by IAS 34 'Interim Financial Reporting'.
8 EARNINGS/(LOSS) PER ORDINARY SHARE
Basic earnings/(loss) per share is calculated by dividing
profit/(loss) attributable to equity shareholders by the weighted
average number of ordinary shares in issue during the period. For
diluted earnings per share, the weighted average number of shares
is increased by the average number of potential ordinary shares
held under option during the period. This reflects the number of
ordinary shares which would be purchased using the difference in
value between the market value of shares and the share option
exercise price. The market value of shares has been calculated
using the average ordinary share price during the period. Only
share options which have met their cumulative performance criteria
have been included in the dilution calculation. The earnings/(loss)
and weighted average number of shares used in the calculations are
set out below.
Earnings
/ Weighted Per
(loss) average share
number
of amount
shares
GBPm millions pence
Half year ended 30 April 2023 - Total
Basic earnings per share 21.1 256.1 8.2
Effect of share options - 1.6
-------- --------
Diluted earnings per share 21.1 257.7 8.2
-------- --------
Half year ended 30 April 2023 - Pre-exceptional
items
Basic earnings per share 15.6 256.1 6.1
Effect of share options - 1.6
Adjusted diluted earnings per share 15.6 257.7 6.1
-------- --------
Half year ended 30 April 2022 - Total
Basic loss per share (42.2) 256.5 (16.5)
Effect of share options - -
-------- --------
Diluted loss per share (42.2) 256.5 (16.5)
-------- --------
Half year ended 30 April 2022 - Pre-exceptional
items
Basic earnings per share 40.4 256.5 15.7
Effect of share options - 0.9
Adjusted diluted earnings per share 40.4 257.4 15.7
-------- --------
Full year ended 31 October 2022 - Total
Basic earnings per share 26.4 256.4 10.3
Dilutive effect of share options - 1.3
Diluted earning per share 26.4 257.7 10.2
-------- --------
Full year ended 31 October 2022 - Pre-exceptional
items
Basic earnings per share 109.0 256.4 42.5
Dilutive effect of share options - 1.3
Adjusted diluted earnings per share 109.0 257.7 42.3
-------- --------
9 DIVIDS
Half Half Full year
year ended year ended ended
30 April 30 April 31 October
2023 2022 2022
GBPm GBPm GBPm
Dividends recognised as distributions to
equity shareholders in the period:
Final dividend for the year ended 31 October
2022 of 11.5 pence per share (2021: 9.5 pence
per share) 29.5 24.4 24.4
Interim dividend for the year ended 31 October
2022: 5.5
pence per share (2021: 4.1 pence per share) - - 14.1
----------- ----------- ----------
29.5 24.4 38.5
The Board approved an interim dividend of 5.5 pence per share on
8 June 2023. The interim dividend will be paid on 13 October 2023
to ordinary shareholders on the Register of Members on 22 September
2023. In accordance with IAS 10 'Events After the Reporting Period'
the proposed dividend has not been included as a liability in this
condensed consolidated half year financial information.
10 INVENTORIES
As at As at As at
30 April 30 April 31 October
2023 2022 2022
GBPm GBPm GBPm
Work-in-progress 1,021.9 1,056.5 942.8
Completed buildings including show homes 68.4 58.6 30.1
Part exchange inventories 17.8 14.5 17.2
--------- --------- -----------
1,108.1 1,129.6 990.1
--------- --------- -----------
Total inventories are stated after a net realisable value
provision of GBP14.6m (30 April 2022: GBP12.2m, 31 October 2022:
GBP12.6m).
GBP3.2m NRV was charged in the period, principally related to
the Group's scheme at Brightwell's Yard, Farnham. This scheme has
previously been highlighted as being unprofitable. It is a complex,
urban regeneration and mixed-use development scheme. During the
period costs to complete on the scheme increased requiring a
further NRV charge.
Of the GBP14.6m remaining NRV provision at 30 April 2023 it is
currently forecast that around a fifth will be used in the second
half of the 2023 financial year.
Movements in the NRV provision As at As at As at
30 April 30 April 31 October
2023 2022 2022
GBPm GBPm GBPm
At beginning of the period 12.6 20.7 20.7
Pre-exceptional NRV charged in the period 3.2 1.8 9.6
Pre-exceptional NRV used in the period (0.9) (3.2) (7.2)
Exceptional NRV used in the period (0.3) (7.1) (10.5)
--------- --------- -----------
Total movement in NRV in the period 2.0 (8.5) (8.1)
--------- --------- -----------
At end of the period 14.6 12.2 12.6
--------- --------- -----------
11 CASH AND CASH EQUIVALENTS, INTEREST-BEARING LOANS AND BORROWINGS
As at As at As at
30 April 30 April 31 October
2023 2022 2022
GBPm GBPm GBPm
Cash and cash equivalents 163.6 271.6 373.6
--------- --------- -----------
Non-current interest-bearing loans and
borrowings
Senior loan notes - maturing 2024 to
2029 (100.0) (100.0) (100.0)
Revolving credit facility and senior
loan notes issue costs 2.6 1.7 2.9
(97.4) (98.3) (97.1)
--------- --------- -----------
The first repayment of GBP15.0m of senior loan notes is due in
August 2024.
At 30 April 2023, the Group had undrawn revolving credit
facilities of GBP250.0m (30 April 2022: GBP250.0m, 31 October 2022:
GBP250.0m).
12 PROVISIONS
As at As at As As at As at As at As at As at As at
at
30 April 30 April 30 30 April 30 April 30 31 October 31 October 31
April April October
2023 2023 2023 2022 2022 2022 2022 2022 2022
Combustible Other Total Combustible Other Total Combustible Other Total
materials provisions materials provisions materials provisions
and joint and joint
ventures ventures
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
At beginning
of the
period 140.8 2.2 143.0 42.6 0.5 43.1 42.6 0.5 43.1
Provided
in the
period 1.4 - 1.4 105.0 - 105.0 102.5 0.3 102.8
Imputed
interest 2.2 - 2.2 - - - 1.0 - 1.0
Utilised
in the
period (5.2) - (5.2) (1.5) (0.2) (1.7) (5.3) - (5.3)
Released
in the
period - - - - - - - (0.4) (0.4)
Funding
commitment
recognised - - - - - - - 1.2 1.2
Funding
commitment
released - (1.2) (1.2) - - - - - -
Reclassification - - - - - - - 0.6 0.6
At end
of the
period 139.2 1.0 140.2 146.1 0.3 146.4 140.8 2.2 143.0
------------ ----------- ------ ------------ ----------- ------ ------------ ----------- --------
Of which:
Non-current 67.6 0.3 67.9 82.1 - 82.1 70.5 0.3 70.8
Current 71.6 0.7 72.3 64.0 0.3 64.3 70.3 1.9 72.2
------------ ----------- ------ ------------ ----------- ------ ------------ ----------- --------
139.2 1.0 140.2 146.1 0.3 146.4 140.8 2.2 143.0
------------ ----------- ------ ------------ ----------- ------ ------------ ----------- --------
Combustible materials
As a consequence of signing the Developer Remediation Contract
on 13 March 2023, the Group has now become legally responsible for
the identification and remediation of those buildings it has
developed with possible life-critical fire safety defects. The
signing of the contract did not materially alter the provision
required. The Group is currently working on circa 90 buildings in
various stages of design, procurement and works.
The combustible materials provision reflects the estimated costs
to complete the remediation of life-critical fire safety issues on
identified buildings. The Directors have used a combination of
Buildings Safety Fund (BSF) costed information, other external
information and internal assessments as a basis for the provision,
which is a best estimate at this time.
The Group recorded a further net combustible materials charge of
GBP1.4m in the period predominantly related to changes in forecast
build cost inflation over the duration of remediation, net of the
change in discounting. The provision is stated after a related
discount of GBP5.5m, which unwinds to the condensed consolidated
income statement as finance expense over the expected duration of
the provision using the effective interest rate method.
The provision of GBP139.2m represents the Group's best estimate
of future costs at 30 April 2023. The Group will continue to assess
the magnitude and utilisation of this provision in future reporting
periods. The Group recognises that required remediation works could
be subject to further inflationary pressures and cash outflows. If
forecast remediation costs on buildings currently provided for are
20.0% higher than provided, the pre-tax exceptional items charge in
the condensed consolidated income statement would be GBP27.8m
higher. If further buildings are identified this could also
increase the required provision, but the potential quantity of this
change cannot be readily determined without further claims or
investigative work.
The Group spent GBP5.2m in the period across several buildings
requiring further investigative costs, including balcony and
cladding related works. The Group expects to have completed any
required remediation within a five-year period, using GBP71.6m of
the remaining provision within one year, and the balance within one
to five years. The timing of the expenditure is based on the
Directors best estimates of the timing of remediating buildings and
repaying the BSF incurred costs. Actual timing may differ due to
delays in agreeing scope of works, obtaining licences, tendering
works contracts and the BSF payment schedule differing to our
forecast.
The Group is continuing to review the recoverability of costs
incurred from third parties where it has a contractual right of
recourse. In the period GBP10.0m was recovered from third parties
by the Group. The Group also recognised its share of recoveries
from third parties in its joint venture Crest Nicholson Bioregional
Quintain LLP of GBP1.1m. See note 5 for condensed consolidated
income statement disclosure.
13 FINANCIAL ASSETS AND LIABILITIES
As at As at As at
30 April 30 April 31 October
2023 2022 2022
Financial assets GBPm GBPm GBPm
Sterling cash deposits 163.6 271.6 373.6
Trade receivables 46.2 43.8 59.1
Amounts due from joint ventures 29.4 51.0 27.1
Other receivables 16.3 5.5 29.6
--------- --------- -----------
Total financial assets at amortised
cost 255.5 371.9 489.4
Financial assets at fair value through
profit and loss 4.1 4.8 4.6
--------- --------- -----------
Total financial assets 259.6 376.7 494.0
--------- --------- -----------
Financial assets at fair value through profit and loss are held
at fair value and categorised as level three within the
hierarchical classification of IFRS 13 'Fair Value Measurement'.
The carrying value of cash and cash equivalents, trade and other
receivables and amounts due from joint ventures is a reasonable
approximation of fair value which would be measured under a level 3
hierarchy.
As at As at As at
30 April 30 April 31 October
2023 2022 2022
Financial liabilities GBPm GBPm GBPm
Senior loan notes 100.0 100.0 100.0
Land payables on contractual terms carrying
interest 16.7 57.3 29.8
Land payables on contractual terms carrying
no interest 131.5 122.6 168.9
Amounts due to joint ventures 1.3 0.2 0.1
Lease liabilities 4.8 3.7 3.9
Other trade payables 46.8 40.2 41.1
Other payables 3.5 5.7 5.5
Accruals 119.4 275.5 175.7
--------- --------- -----------
Total financial liabilities at amortised
cost 424.0 605.2 525.0
--------- --------- -----------
The carrying amounts of the Group's financial liabilities is
deemed a reasonable approximation to their fair value.
14 (NET DEBT)/NET CASH INCLUDING LAND CREDITORS
As at As at As at
30 April 30 April 31 October
2023 2022 2022
GBPm GBPm GBPm
Cash and cash equivalents 163.6 271.6 373.6
Non-current interest-bearing loans and
borrowings (97.4) (98.3) (97.1)
--------- --------- -----------
Net cash 66.2 173.3 276.5
Land payables on contractual terms carrying
interest (16.7) (57.3) (29.8)
Land payables on contractual terms carrying
no interest (131.5) (122.6) (168.9)
--------- --------- -----------
(Net debt)/net cash including land
creditors (82.0) (6.6) 77.8
--------- --------- -----------
15 SHARE CAPITAL
Shares Nominal Share Share
issued value capital premium
account
number pence GBPm GBPm
As at 30 April 2023, 30 April 2022
and 31 October 2022 256,920,539 5 12.8 74.2
------------ -------- --------
16 RELATED PARTY TRANSACTIONS
Transactions between fellow subsidiaries, which are related
parties, are eliminated on consolidation, as well as transactions
between the Group and its subsidiaries during the current and prior
period.
There were no transactions between the Group and key management
personnel other than remuneration during the current and prior
period.
The Group pays contributions to the Crest Nicholson Group
Pension and Life Assurance Scheme to improve the Scheme's funding
position as determined by regular actuarial valuations.
The Company's Directors and Non-Executive Directors have
associations other than with the Company. From time to time the
Group may trade with organisations with which a Director or
Non-Executive Director has an association. Where this occurs, it is
on normal commercial terms and without the direct involvement of
the Director or Non-Executive Director.
The Group had the following transactions with its joint ventures
in the period:
Half year Half year Full year
ended ended ended
30 April 30 April 31 October
2023 2022 2022
GBPm GBPm GBPm
Interest income on joint venture funding 0.6 1.4 2.1
Project management fees received 0.8 1.0 2.0
Amounts due from joint ventures, net
of expected credit losses 29.4 51.0 27.1
Amounts due to joint ventures 1.3 0.2 0.1
Funding to joint ventures (4.4) (3.4) (7.5)
Repayment of funding from joint ventures 3.4 7.5 18.8
Dividends received from joint ventures - - 2.4
17 CONTINGENCIES AND COMMITMENTS
There are performance bonds and other engagements, including
those in respect of joint venture partners, undertaken in the
ordinary course of business. It is impractical to quantify the
financial effect of performance bonds and other arrangements. The
Directors consider the possibility of a cash outflow in settlement
of performance bonds and other arrangements to be remote and
therefore this does not represent a contingent liability for the
Group.
In the ordinary course of business, the Group enters into
certain land purchase contracts with vendors on a conditional
exchange basis. The conditions must be satisfied for the Group to
recognise the land asset and corresponding liabilities within the
condensed consolidated statement of financial position. No land
payable in respect of conditional land acquisitions has been
recognised.
The Group provides for all known material legal actions, where
having taken appropriate legal advice as to the likelihood of
success of the actions, it is considered probable that an outflow
of economic resource will be required, and the amount can be
reliably measured. No material contingent liability in respect of
such claims has been recognised since there are no known claims of
this nature.
As a consequence of signing the Developer Remediation Contract
on 13 March 2023, the Group has now become legally responsible for
the identification and remediation of those buildings it has
developed with possible life-critical fire safety defects.
Accordingly, whilst the Group believes that most significant
liabilities will have been identified through the process of
building owners assessing buildings and applying for BSF funding,
contingent liabilities exist where additional buildings have not
yet been identified which require remediation. Due to the enduring
challenges of developing a reliable estimate of these possible
costs, the Group continues to not disclose an expected range.
The Group is reviewing the recoverability of costs incurred from
third parties where it has a contractual right of recourse. As
reflected in these interim financial results the Group has a track
record of successfully obtaining such recoveries, however no
contingent assets have been recognised in these condensed
consolidated financial statements for such items.
CREST NICHOLSON HOLDINGS PLC
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 30 APRIL 2023
ALTERNATIVE PERFORMANCE MEASURES (UNAUDITED)
The Group uses a number of alternative performance measures
(APM) which are not defined within IFRS. The Directors use the
APMs, along with IFRS measures, to assess the operational
performance of the Group. Definitions and reconciliations of the
financial APMs used compared to IFRS measures, are included
below:
Adjusted performance metrics
Adjusted performance metrics as shown below comprise statutory
metrics adjusted for the exceptional items as presented in note 5
of the condensed consolidated financial statements. In the view of
the Directors, the exceptional items have a material impact to
reported performance and arise from recent, unforeseen events. As
such, the Directors consider these adjusted performance metrics
reflect a more accurate view of its core operations and business
performance.
Exceptional
Half year ended 30 April 2023 Statutory items Adjusted
Gross profit GBPm 59.2 (8.6) 50.6
Gross profit margin % 20.9 (3.0) 17.9
Operating profit GBPm 30.7 (8.6) 22.1
Operating profit margin % 10.9 (3.1) 7.8
Net finance expense GBPm (4.7) 2.2 (2.5)
Share of post-tax profit/(loss)
of joint ventures using the equity
method GBPm 2.4 (1.1) 1.3
Profit before tax GBPm 28.4 (7.5) 20.9
Income tax (expense)/credit GBPm (7.3) 2.0 (5.3)
Profit after tax GBPm 21.1 (5.5) 15.6
Basic earnings per share Pence 8.2 (2.1) 6.1
Diluted earnings per share Pence 8.2 (2.1) 6.1
Exceptional
Half year ended 30 April 2022 Statutory items Adjusted
Gross (loss)/profit GBPm (27.5) 105.0 77.5
Gross (loss)/profit margin % (7.5) 28.8 21.3
Operating (loss)/profit GBPm (50.5) 105.0 54.5
Operating (loss)/profit margin % (13.9) 28.8 15.0
(Loss)/profit before tax GBPm (52.5) 105.0 52.5
Income tax credit/(expense) GBPm 10.3 (22.4) (12.1)
(Loss)/profit after tax GBPm (42.2) 82.6 40.4
Basic (loss)/earnings per share Pence (16.5) 32.2 15.7
Diluted (loss)/earnings per share Pence (16.5) 32.2 15.7
Exceptional
Full year ended 31 October 2022 Statutory items Adjusted
Gross profit GBPm 91.8 102.5 194.3
Gross profit margin % 10.0 11.3 21.3
Operating profit GBPm 38.4 102.5 140.9
Operating profit margin % 4.2 11.2 15.4
Net finance expense GBPm (8.1) 1.0 (7.1)
Share of post-tax profit/(loss)
of joint ventures using the equity
method GBPm 2.5 1.5 4.0
Profit before tax GBPm 32.8 105.0 137.8
Income tax expense GBPm (6.4) (22.4) (28.8)
Profit after tax GBPm 26.4 82.6 109.0
Basic earnings per share Pence 10.3 32.2 42.5
Diluted earnings per share Pence 10.2 32.1 42.3
Land creditors as a percentage of net assets
The Group uses land creditors as a percentage of net assets as a
core management measure to ensure that the Group is maintaining a
robust financial position when entering into future land
commitments. Land creditors as a percentage of net assets is
calculated as land creditors divided by net assets, as presented
below. Land creditors as a percentage of net assets has reduced to
16.9% from 21.3% at 30 April 2022.
As at As at As at
30 April 30 April 31 October
2023 2022 2022
Land creditors GBPm 148.2 179.9 198.7
Net assets GBPm 876.6 846.3 883.1
Land creditors as a percentage of
net assets % 16.9 21.3 22.5
Net cash
Net cash is cash and cash-equivalents plus non-current and
current interest-bearing loans and borrowings. Net cash Illustrates
the Group's overall liquidity position and general financial
resilience. Net cash has reduced to GBP66.2m from GBP173.3m at 30
April 2022.
As at As at As at
30 April 30 April 31 October
2023 2022 2022
Cash and cash equivalents GBPm 163.6 271.6 373.6
Non-current interest-bearing loans
and borrowings GBPm (97.4) (98.3) (97.1)
Net cash GBPm 66.2 173.3 276.5
Return on capital employed (ROCE)
Return on capital employed equals rolling 12 month adjusted
operating profit before joint ventures divided by the average of
opening and closing capital employed over the same 12 months
(capital employed = equity shareholders' funds plus net borrowing
or less net cash).
Half Half Full
year year year
ended ended ended
30 April 30 April 31 October
2023 2022 2022
Adjusted operating profit - rolling 12
month GBPm 108.5 129.1 140.9
Average of opening and closing capital
employed over same 12 months GBPm 741.7 705.9 627.7
ROCE % 14.6 18.3 22.4
Half Half Half
year year year Full Full
ended ended ended year ended year ended
30 April 30 April 30 April 31 October 31 October
2023 2022 2021 2022 2021
Adjusted operating profit
For reporting period/year GBPm 22.1 54.5 40.0 140.9 114.6
Second half of the prior
year where applicable GBPm 86.4 74.6 n/a
---------- ---------- ------------
Rolling 12 month GBPm 108.5 129.1 140.9
---------- ---------- ------------
As at As at As at As at As at
30 April 30 April 30 April 31 October 31 October
2023 2022 2021 2022 2021
Capital employed GBPm GBPm GBPm GBPm GBPm GBPm
Equity shareholders' funds GBPm 876.6 846.3 869.1 883.1 901.6
Net (cash)/net debt (note
14) GBPm (66.2) (173.3) (130.4) (276.5) (252.8)
---------- ---------- ---------- ------------ ------------
Closing capital employed GBPm 810.4 673.0 738.7 606.6 648.8
---------- ---------- ---------- ------------ ------------
Average closing capital
employed GBPm 741.7 705.9 627.7
---------- ---------- ---------- ------------ ------------
CREST NICHOLSON HOLDINGS PLC
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 30 APRIL 2023
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 unaudited interim results of Crest Nicholson
Holdings plc for the 6 month period ended 30 April 2023 (the
"period").
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 UK adopted
International Accounting Standard 34, 'Interim Financial Reporting'
and the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority.
The interim financial statements comprise:
-- the Condensed Consolidated Statement of Financial Position as at 30 April 2023;
-- the Condensed Consolidated Income Statement and the 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 unaudited
interim results of Crest Nicholson Holdings plc have been prepared
in accordance with UK adopted International Accounting Standard 34,
'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410, 'Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity' issued by the Financial Reporting Council for use in the
United Kingdom ("ISRE (UK) 2410"). 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,
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 unaudited
interim results and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis for
conclusion section of this report, nothing has come to our
attention to suggest that the directors have inappropriately
adopted the going concern basis of accounting or that the directors
have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on
the review procedures performed in accordance with ISRE (UK) 2410.
However, future events or conditions may cause the group to cease
to continue as a going concern.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The unaudited interim results, including the interim financial
statements, is the responsibility of, and has been approved by the
directors. The directors are responsible for preparing the
unaudited interim results in accordance with the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the unaudited interim
results, including the interim financial statements, the directors
are responsible for assessing the group's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group or to cease
operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim
financial statements in the unaudited interim results based on our
review. Our conclusion, including our Conclusions relating to going
concern, is based on procedures that are less extensive than audit
procedures, as described in the Basis for conclusion paragraph of
this report. This report, including the conclusion, has been
prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook 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.
PricewaterhouseCoopers LLP
Chartered Accountants
London
8 June 2023
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 or visit 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.
END
IR BCGDLXGGDGXR
(END) Dow Jones Newswires
June 08, 2023 02:00 ET (06:00 GMT)
Crest Nicholson (LSE:CRST)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Crest Nicholson (LSE:CRST)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
