Slide 1: 2013 Preliminary Results Presentation
Crest Nicholson 2013 Preliminary Results Presentation 28th January 2014
Slide 2: Full Year Results presentation
Full Year Results presentation • Performance Highlights and Operations Stephen Stone • Financial Results Patrick Bergin • Outlook & Summary Stephen Stone • Q&A 1 2
Slide 3: Performance highlights (1)
Performance highlights (1) Revenues of £525.7m (2012: £408.0m) +29% Unit completions of 2,172 units (2012: 1,882) +15% Sales per Outlet Week at 0.90 (2012: 0.67) +34% Forward sales at mid-January of £329.5m (2012: £218.7m) +51% 2
Slide 4: Performance highlights (2)
Performance highlights (2) Gross profit of £141.2m (2012: £111.8m) +26% Operating profit of £97.1m* (2012: £73.3m) +32% Profit before tax of £86.8m* (2012: £62.1m) +40% Operating profit margin of 18.5%* (2012: 18.0%) Return on Capital Employed of 24.1%* (2012: 20.7%) * Figures for 2013 quoted pre-ex
Slide 5: Strong sales performance
0.2 0.4 0.6 0.8 1.0 1.2 - Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Nov - Apr May – Oct Sep-11 Oct-11 Sales per Outlet Week Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 0.91 0.77 2013 May-12 4 Jun-12 Strong sales performance Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 0
Slide 6: Large sites able to drive significant volume ....
Large sites able to drive significant volume …. • Sites of scale able to offer multiple channels to market: • Broad range of open-market product • Private rental • Affordable housing • Commercial • Land sales Open market H1 H2 Total reservations Bath 34 41 75 Oakgrove 34 50 84 CQ 21 126 147 Park Cen
Slide 7: ...underpinning high quality returns
…underpinning high quality returns ** • ROCE% rising strongly * as assets ‘sweated’ in strong market * Before exceptional costs ** Net Asset growth includes £53.9m new equity raised at IPO 6
Slide 8: Site additions
Site additions 19 8 6 3 11 1 6 18 15 7 4 10 2 4 12 1 16 5 3 9 17 13 5 14 7 2 9 8 10 Short-term Strategic • 1,895 plots on 19 new sites added to short-term land bank to maintain outlet breadth • Higher ASP sites in strong locations; five sites acquired in London • Average site size of 100 units • Con
Slide 9: Strategic land bank
Strategic land bank • 10 new sites to maintain strategic pipeline • 7 planning applications being submitted in 2014 • 5 current applications awaiting determination No. of No. of % sites Plots plots Allocated 6 3,272 23% In Draft Allocation 8 4,821 34% Other 21 6,232 43% Total 35 14,325 100% 8
Slide 10: Portfolio progress
Portfolio progress Oct 2013 Oct 2012 Change % Units GDV £m Units GDV Units GDV £m £m Short-term housing 16,388 3,886 16,959 3,646 (3.4%) 6.6% Short-term commercial - 251 - 235 6.8% Total short-term 16,388 4,137 16,959 3,881 (3.4%) 6.6% Strategic land 14,325 3,535 12,623 2,918 13.5% 21.1% Total under
Slide 11: Longcross North
Longcross North Planning Update • New Highway access under construction • Ph1 housing detailed approval: Spring’14 • Infrastructure: Start May/June ‘14 • First Occupations anticipated Summer ’15 10
Slide 12: Longcross South
Longcross South Planning Update • 1,300 dwelling new Surrey Village • In Runnymede Approved Core Strategy • Local Plan Enquiry April/May 14 • Outline application Spring 2014 • Consent Anticipated Summer 2015 11
Slide 13: Financial Results
Financial Results
Slide 14: FY 2013 Financial Highlights
FY 2013 Financial Highlights Strong growth and good returns Revenue Open Market ASP Gross Profit £525.7m £250k £141.2m (2012: £408.0m) (2012: £230k) (2012: £111.8m) Gross Margins Operating Profit Operating Margins 26.9% £97.1m 18.5% (2012: 27.4%) (2012: £73.3m) (2012: 18.0%) Profit after tax ROCE Ne
Slide 15: Key metrics
Key metrics FY 2013 FY 2012 Inc/(Dec) % Outlets 44 39 +13% Sales per Outlet Week (Open market) 0.90 0.67 +34% Legal completions Open market 1,806 1,342 +35% Affordable 366 540 -32% ASP Open market 250 230 +9% Affordable* 151 145 +4% * Affordable ASP varies depending on extent to which related Afford
Slide 16: ASP evolution
ASP evolution • Increasing proportion of higher-value locations and housing in mix • Land bank GDV rising whilst unit numbers stable at 7.5 years supply 300 8% CAGR 250 200 150 100 50 0 2010 2011 2012 2013 14
Slide 17: Income statement
Income statement Income statement (£m, FY 2013 Exceptional FY 2013 Change FY 2012 unless stated) Pre-exceptional costs Total (pre-exceptional) Revenue 525.7 525.7 408.0 117.7 28.8% Cost of goods sold (384.5) (384.5) (296.2) (88.3) Gross profit 141.2 141.2 111.8 29.4 26.3% % gross profit margin 26.9%
Slide 18: Balance sheet
Balance sheet Balance sheet (£m, unless stated) 31st Oct 2013 31st Oct 2012 Change on Oct’12 Non-current Assets 127.0 140.1 (13.1) Inventory 577.7 469.4 108.3 Trade & other receivables 44.0 41.5 2.5 Cash and cash equivalents 124.5 150.1 (25.6) Total Assets 873.2 801.1 72.1 Interest bearing loans and
Slide 19: Cash flow
Cash flow Cash flow (£m, unless stated) FY2013 FY 2012 Change Operating profit before changes in working capital and 100.5 74.5 26.0 provisions (Increase)/decrease in trade and other receivables (6.7) 5.2 (11.9) Increase in inventories (108.3) (75.2) (33.1) Increase in trade and other payables 42.0
Slide 20: Forward sales
Forward sales YTD YTD FY13 FY12 FY14 FY13 Units – all years 1,778 1,242 1,360 837 % change on prior period +43% +62% GDV (£m) – all years 329.5 218.7 230.1 129.6 % change on prior period +51% +78% % of FY2014/13 target 51% 45% 34% 25% • Rising ASPs drive higher increases in GDV forward sale position
Slide 21: Dividend
Dividend • The Board is recommending a Final dividend for the year-ended 31st October 2013 of 6.5 pence per share. • Structure of dividend payments expected to be 1/3rd Interim, 2/3rds Final – so 6.5p translates to 9.75p on full-year equivalent basis • At 9.75p on full year equivalent basis, dividen
Slide 22: Outlook & Summary
Outlook & Summary
Slide 23: Outlook
Outlook • An improving market in the first half of 2013 was further stimulated by ‘Help to Buy’, generating strong reservations and increasing purchaser confidence • ASP trajectory maintained, with mix a significant factor; sales price gains slightly ahead of build cost increases • Land market conti
Slide 24: Summary
Summary • A strong first set of Full Year results on Crest Nicholson’s return to the market • Good sales growth • Strong margins and Return on Capital • Positioned to continue driving value from high-quality, southern-focused development pipeline • Business strategy as outlined at IPO remains on tra
Slide 25: Q&A
Q&A
Slide 26: Disclaimer
Disclaimer You should note that the financial projections and other statements regarding Crest Nicholson's intentions, beliefs or current expectations referred to in this document are forward looking and do not relate solely to historical or current facts. These statements are provided on a confiden