Crest Nicholson unveils strong first half, reinstates dividend

17th Jun 2014 07:10

- Half-year results shine as housing market momentum continues- Reinstates dividend payment- Remains confident for the full-yearSurrey-based house builder Crest Nicholson said business has continued to flourish in a good housing market and, with an improving economic backdrop, it remains confident for the full-year.Pre-tax profit rose to £38.4m for the six months ended April 30th from £28.1m while revenue for the period advanced to £241.1m from £192.0m a year earlier. An interim dividend of 4.1p has been proposed compared to no payment in 2013. Earnings per share surged 32%.Housing legal completions jumped 35% to 1,091 and gross profit margins rose 90 basis points to 28.7% as the benefits of the strong sales pricing environment more than offset the impact of input costs increases."Mortgage access and affordability continue to be favourable, particularly aided by the government's 'Help to Buy' scheme. First-time buyers have benefited significantly from this initiative. "The proposed extension of the scheme to 2020 offers the prospect of continued support to purchasers seeking to own their first home and provides a level of forward visibility that will enable the industry to plan ahead with confidence," the group said in a company statement.Crest Nicholson said the generally improving economic outlook, with rising employment and a return to real wage growth, combined with improved mortgage access continues to underpin a recovery in the housing market.Chief Executive Stephen Stone said: "With an improving economic backdrop underpinning the strength of the sector and the opportunities available to the business, the board remains confident in the outturn for the year."CJ