Crest Nicholson profits drop as Brexit weighs
By Iain Gilbert
Date: Tuesday 28 Jan 2020
(Sharecast News) - British housebuilder Crest Nicholson said on Tuesday that pre-tax profits slumped last year, with the group missing even its own revised forecasts.
In the year to 31 October, pre-tax profits tumbled 39% to £102.7m, falling short of the guidance of £120-130m it issued following last October's profit warning. Profit margins declined to 12.2% from 16.2%, while home sales slipped 2% to £1.1bn.
Net cash more than doubled to £37.2m, helping the group to maintain its 33p total dividend per share.
The firm cited 2019's Brexit uncertainty for its poor profit performance. Crest Nicholson, which mainly operates in London and the South East of England, noted that house prices had fallen in its territories since the 2016 EU referendum.
"During the second half of the year, there was increased volatility in the number of site visits, reservations and completions, and elevated cancellation rates as customers continued to cite concerns over political and economic uncertainty stemming from Brexit," it said.
"In our geographies and at our price points, the resulting uncertainty has led consumers to refrain from buying until the economic and political landscape is clearer."
Separately, Crest Nicholson also announced that deputy chairman Leslie Van de Walle will not stand for re-election at the annual meeting on 24 March.
At 1055 GMT, the shares were up 4.2% at 458.83p.
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