Crest Nicholson declares FY dividend as 2013 profit rises

28th Jan 2014 07:00

Housebuilder Crest Nicholson declared a final dividend after returning to the UK stock market last year as a rising housing market helped it to boost profits by 40 per cent.Crest, which floated on the London Stock Exchange in February, said it was proposing a final dividend of 6.5p for payment on April 9th.The company said UK government moves to boost the housing market such as Help to Buy had helped it to lift home completions by 35% to 1,806 during the year and it took nearly 600 reservations under Help to Buy.Pre-tax profits before exceptionals in the year to December 31st increased by 40% to £86.8m on a 29% rise in revenue to £525.7m.Crest added that forward sales in the middle of this month had risen to £329.5m against £218.7m at the same time last year, 51% ahead and with 51% of this year's forecast secured against 45% a year ago.Critics have pointed out that the speed at which house prices are rising as a result of Help to Buy and other buyer incentives may outstrip supply and cause a house price bubble.Crest's Chief Executive Stephen Stone said the sweeteners had "undoubtedly" stimulated industry activity."We're playing our part by increasing production where possible," he said.Chairman William Rucker added: "As consumer sentiment and credit availability have improved, constraints on growth are increasingly determined by the supply chain, the shelf-life of mortgage offers and the planning process. Nonetheless, the trading environment is healthy and we look forward to continuing to deliver in 2014."PW