Developer declares after-tax profits of £40.5m after financial restructuring

Developer Crest Nicholson has reported a 12.2% increase in revenue and an even bigger increase in average sale prices in its latest full-year figures.

The company said revenue for the year to 31 October 2011, was £319.1m, up from £284.4m the previous year.

It reported average sale prices of £224,000, compared with £198,000 in 2010 – a 13.1% increase.

However the firm saw completions drop from 1,609 units to 1,520 units between the two years.

Earnings before interest, taxation, depreciation and amortisation were up 19% to  £57.5m.

Profit after tax was £40.5m, up from a loss of £27.6m for 2010.

Chief executive Stephen Stone said 2011 had been an “exciting and fulfilling” year in which the group had continued to trade strongly and achieved a consensual financial restructuring.

“Crest Nicholson has a highly attractive development portfolio and a track record for outstanding design quality and commitment to sustainability in its widest sense,” he said.

“With an attractive landbank, favourable southern England focus, market leading sales rates and improving market sentiment, we are well positioned and look forward to the future with confidence.”

The company said its restructuring had seen £368m of debt and accrued interest converted to equity, leaving it with net  assets of £287m against net liabilities of £99m for 2010.

In his review of the results, Stone added that the successful implementation of the government’s proposed National Planning Policy Framework would be key to maintaining growth in the sector.

He said: “[It] will release resources from dealing with unnecessarily complex and costly regulations to concentrate time in the planning process where it matters - delivering a sustainable built environment that meets the needs and desires of local communities and helps to address the national housing shortage.”