Crest Nicholson will be reinstating its dividend, despite swinging to a loss as the pandemic bites.
Financial highlights from preliminary results for the year ended 31 October 2020:
- Revenue at £677.9m (FY19: £1,086.4m), impacted by COVID-19 disruption in FY20;
- Adjusted profit before tax1 at £45.9m, (FY19: £121.1m), ahead of £35m-£45m guidance range;
- Exceptional charge net of tax of £48.1m (FY19: £14.9m), including £43.2m non-cash inventory impairment charge;
- Loss after tax at £10.7m (FY19: £82.5m profit after tax);
- Good trading performance since the spring lockdown and reservation levels in line with expectations during January 2021. Year to date sales per outlet week (SPOW) of 0.60;
- Forward sales as at 15 January 2021 of 2,435 units and £564.5m Gross Development Value (GDV) c.55% of FY21 covered (17 January 2020: 2,346 units and £503.5m GDV)
- FY20 SPOW of 0.59 (FY19: 0.76);
- Average outlets at 63, up from 59 in FY19, in line with our strategic priority to grow outlets;
- Excellent progress strengthening balance sheet through better WIP management and control;
- Net cash2 at £142.2m (FY19: £37.2m), ahead of November trading statement guidance;
- Land creditors at £205.7m (£216.5m);
- £2.5m Government Job Retention Scheme funding repaid in full on 14 December 2020.
- Reinstatement of dividend at two and a half times cover, effective from HY21.
Key financial metrics
| £m (unless otherwise stated) | FY20 | FY19 | % Change |
| Home completions (units) | 2,247 | 2,912 | |
| Revenue | 677.9 | 1,086.4 | (37.6) |
| Adjusted gross profit3 | 107.7 | 201.9 | (46.7) |
| Adjusted gross profit margin %3 | 15.9% | 18.6% | (270bps) |
| Adjusted administrative expenses3 | (50.3) | (65.5) | 23.2 |
| Adjusted net impairment losses on financial assets3 | (0.3) | (3.4) | 91.2 |
| Adjusted operating profit3 | 57.1 | 133.0 | (57.1) |
| Adjusted operating profit margin %3 | 8.4% | 12.2% | (380bps) |
| Adjusted net finance expense3 | (10.7) | (11.0) | 2.7 |
| Share of joint venture results | (0.5) | (0.9) | 44.4 |
| Adjusted profit before tax3 | 45.9 | 121.1 | (62.1) |
| Adjusted income tax3 | (8.5) | (23.7) | 64.1 |
| Adjusted profit after tax3 | 37.4 | 97.4 | (61.6) |
| Exceptional items net of income tax | (48.1) | (14.9) | (222.8) |
| Operating (loss) / profit | (1.8) | 114.6 | (101.6) |
| (Loss) / profit before tax | (13.5) | 102.7 | (113.1) |
| (Loss) / profit after tax | (10.7) | 82.5 | (113.0) |
| Adjusted basic earnings per share (p)3 | 14.6 | 38.0 | (61.6) |
| Basic (loss) / earnings per share (p) | (4.2) | 32.1 | (113.1) |
| Dividend per share (p)4 | – | 11.2 |
Peter Truscott, Chief Executive, said: “The impact of COVID-19 has clearly had a defining impact on this year’s financial performance. It has challenged all of us in ways we could not have predicted, and I would like to recognise at the outset, the incredible job the team at Crest Nicholson have done in keeping our operations running safely and securely during the pandemic.
“We had to make some difficult decisions during this year but because we acted swiftly we have ensured the Group enters 2021 in strong shape and will remain resilient to whatever challenges this year brings. We have made strong progress on all elements of our strategy, delivered profit ahead of our revised guidance and strengthened the balance sheet as we promised.”
