Crest Nicholson Holdings PLC · LSE:CRST
Crest Nicholson — H1 2004 Earnings Presentation
31 slides from Crest Nicholson's earnings presentation, Jun 24, 2004
Slide 1: Crest Nicholson
Slide 2: Interim Announcement 2004
ABCDEFGHIJ INTERIM ANNOUNCEMENT 2004 24 June 2004
Slide 3: Financial Highlights
Financial Highlights ABCDEFGHIJ Half Year 2004 Half Year 2003 Increase Continuing Turnover £283.0m £249.1m +14% Pre-tax Profit £36.0m £32.0m +13% Earnings per Share 21.8p 19.6p +11% Dividends per Share 4.0p 3.5p +14% Net Assets per Share 241p 208p +16%
Slide 4: Contribution from Activities
Contribution from Activities ABCDEFGHIJ Half Year 2004 Half Year 2003 Sales Operating Sales Operating Profit Profit £m £m £m £m Development 283.0 41.7 249.1 38.5 Construction - - 23.9 - 283.0 41.7 273.0 38.5 Less Interest (5.7) (6.5) Pre-tax Profit 36.0 32.0
Slide 5: Development Performance
Development Performance ABCDEFGHIJ Half Year 2004 Half Year 2003 £m £m Sales: • Housing 226.8 211.0 • Land sales 18.7 30.7 • Commercial Uses 37.5 7.4 283.0 249.1 Gross Margin 65.2 61.5 % 23.0% 24.7% Overhead (23.5) (23.0) % 8.3% 9.2% Operating Profit 41.7 38.5 % Operating Profit 14.7% 15.5%
Slide 6: Housing Sales Analysis
Housing Sales Analysis ABCDEFGHIJ Half Year Half Year % 2004 2003 Units Open market 743 769 -3% Affordable 312 64 388% Total housing units 1,055 833 27% Average selling price £k Open market 251 264 -5% Affordable 130 125 4% Total housing ASP 215 253 -15% Turnover £m Open market 186.3 203.0 -8% Affor
Slide 7: Balance Sheet
Balance Sheet ABCDEFGHIJ April 2004 April 2003 October 2003 £m £m £m Fixed assets and investments 24.5 17.4 17.7 Operating Assets: Stock 735.8 677.4 651.6 Debtors 176.2 148.2 125.9 Land creditors (326.4) (292.5) (308.9) Other creditors (125.1) (101.0) (118.9) 460.5 432.1 349.7 485.0 449.5 367.4 Capi
Slide 8: Stock and WIP
Stock and WIP ABCDEFGHIJ April 2004 April 2003 October 2003 £m £m £m Short term housing land 505.2 458.1 442.4 Commercial land and build 56.7 49.7 48.6 Strategic land 9.2 8.9 10.2 571.1 516.7 501.2 Short term housing build WIP 164.7 160.7 150.4 Total Stock and WIP 735.8 677.4 651.6
Slide 9: Financing
Financing ABCDEFGHIJ April 2004 April 2003 October 2003 Net Borrowings £179.2m £184.3m £81.9m Gearing * 59% 69% 29% Interest Cost £5.7m £6.5m £12.7m Interest Cover 7.3x 5.9x 6.9x * (Preference shares treated as shareholders’ funds)
Slide 10: Borrowings and Facilities
Borrowings and Facilities ABCDEFGHIJ April 2004 April 2003 October 2003 Net Borrowings £179.2m £184.3m £81.9m Average Borrowings £165.2m £192.5m £182.9m Total Facilities £351.9m £262.9m £351.9m Facilities Available £172.7m £78.6m £270.0m
Slide 11: 2004 – Half Year
2004 – Half Year ABCDEFGHIJ • Strong sales performance – Unit sales up 27% – Harbourside HBOS (CMIG) office let and sold • Strong build performance – Step change in production achieved • Strong land buying performance – 2,549 short term housing plots added
Slide 12: Current Housing Market
Current Housing Market ABCDEFGHIJ Half Year • Stable South East market • South West and Midlands trading strongly Now • Good market for low to mid market product in the southern half of England
Slide 13: Housing Forward Sales
Housing Forward Sales ABCDEFGHIJ April 2004 April 2003 Units Turnover Units Turnover £m £m Exchanges 1,715 210.0 1,101 143.5 Reservations 189 46.2 133 28.2 Total Forward 1,904 256.2 1,234 171.7 Sales NOW UP to £325m FY04 – 85% Sold
Slide 14: Mixed Use – Commercial
Mixed Use – Commercial ABCDEFGHIJ Harbourside • HBOS (CMIG) office let and sold • Further space let to M&S, Gala and Accor Hotels Hemel Hempstead • Sold and 70% let Attwood Green • 40,000 sq ft office sold to Prime Focus • Good prospects for retail space
Slide 15: Housing Land Buying
Housing Land Buying ABCDEFGHIJ April April 2004 2003 Plots contracted 2,144 1,133 Strategic plots converted 405 1,442 Short term plots added 2,549 2,575 £000 £000 Average sales price per plot 176.1 167.1 Average plot cost 47.1 40.9
Slide 16: Overview of Land Portfolios
Overview of Land Portfolios ABCDEFGHIJ April October 2004 2003 Short term housing land Plots 14,700 13,204 Strategic land Plots 12,935 13,236 Commercial Sq ft 1,830k 2,034k
Slide 17: Development Portfolio Sales Value
Development Portfolio Sales Value ABCDEFGHIJ April 2004 October 2003 Short term housing £m 2,753 2,481 Commercial £m 467 479 Total portfolio £m 3,220 2,960
Slide 18: Housing Portfolio Statistics
Housing Portfolio Statistics ABCDEFGHIJ April 2004 October 2003 Short term housing plots 14,700 13,204 Average sales price £k 187.3 187.9 Average plot cost £k 35.6 34.8 Land % of sales 18.9% 18.5%
Slide 19: 2004 Trading Prospects
2004 Trading Prospects ABCDEFGHIJ • FY04 unit volumes up by around 30% • Housing association volumes will more than double • Good balance of housing, land sale and commercial profits WELL PLACED TO MAKE GOOD PROGRESS
Slide 20: The Crest Nicholson Mission
The Crest Nicholson Mission ABCDEFGHIJ OUR MISSION IS TO BE THE MARKET LEADER IN THE DESIGN AND DELIVERY OF SUSTAINABLE HOUSING AND MIXED USE DEVELOPMENT
Slide 21: The Partner Of Choice
The Partner Of Choice ABCDEFGHIJ PUBLIC / SOCIAL SECTOR LANDOWNERS PLANNING AUTHORITIES PRIVATE LANDOWNERS HOUSEBUYERS
Slide 22: Supporting The Brand
Supporting The Brand ABCDEFGHIJ PRODUCT QUALITY SUPERIOR CUSTOMER SERVICE DESIGN EXCELLENCE SUSTAINABLE DEVELOPMENTS
Slide 23: Top Performing Quoted Company 2000-2003
2000 - 2003 Top Performing Quoted Company ABCDEFGHIJ
Slide 24: A Consistently Better Product
A Consistently Better Product ABCDEFGHIJ Overall Customer Satisfaction 90 80 70 60 50 40 86 79 88 79 30 86 71 20 10 0 2000 2001 2000 2001 2002/2003 2002/3 Crest Averag e Source MORI
Slide 25: Supporting The Brand
Supporting The Brand ABCDEFGHIJ PRODUCT QUALITY SUPERIOR CUSTOMER SERVICE DESIGN EXCELLENCE SUSTAINABLE DEVELOPMENTS
Slide 26: Launching The East Thames Corridor from Ingress Park
Launching The East Thames Corridor from Ingress Park ABCDEFGHIJ “We are seeing a lot of poor high-density schemes in the South East which amount to soulless housing estates. This is why new schemes, such as the award-winning Ingress Park should be seen as the norm not the exception and is an example
Slide 27: Portfolio – Regional Balance
Portfolio – Regional Balance ABCDEFGHIJ 50 40 percentage 30 42 45 20 34 30 10 16 0 8 15 10 Oct-03 Apr-04 South East South West Midlands Eastern
Slide 28: Portfolio - Sales Price Analysis
Portfolio - Sales Price Analysis ABCDEFGHIJ % 70 60 50 40 68 68 30 20 10 26 27 4 2 0 4 1 0c t-03 A pr-04 <£250k £250k - £500k £500k - £750k >£750
Slide 29: Regional Growth: Current Regions
Regional Growth Current Regions ABCDEFGHIJ REGIONAL OFFICES SITE DISTRIBUTION MIXED USE PROJECTS
Slide 30: Proposed Regional Office
Proposed Regional Office ABCDEFGHIJ PROPOSED NEW REGIONAL OFFICE CURRENT EASTERN SITES EASTERN STRATEGIC LAND
Slide 31: Managing for shareholder value
Managing for shareholder value ABCDEFGHIJ Confident • Of delivering a good full year result • Prepared for a less buoyant market • That our urban regeneration strategy is right • Of our portfolio length, strength, mix and balance • Of our ability to deliver long term shareholder value