Crest Nicholson launches IPO for stock market return

21 Jan 13 Housebuilder Crest Nicholson is planning to return to the stock market with an initial public offering.

Crest Micholson was stock market listed from 1968 to 2007 when it fell victim to the housing crash and was taken over by HBOS and Scottish entrepreneur Sir Tom Hunter. Saddled by debts, it was then taken over by its lending banks in 2009. Hedge fund Varde bought HBOS鈥檚 30% stake in the business from Lloyds in 2010 and by mid-2011 had built up .

Crest Nicholson chief executive Stephen Stone said: "Crest Nicholson has a long and successful history as a public company and today we have announced our intention to return to the stock market. We have a robust balance sheet, a valuable land bank, and a management team that has experienced the best and worst of the housebuilding cycle. The housing market is entering a period of gradual recovery and with our emphasis on the south of England, including London, and the continued support for the new homes market from government, we are well positioned to generate value for shareholders."

Crest Nicholson has also reported its results for the year to 31 October 2012, which show a 30% leap in operating profit to 拢73.3m. Last year鈥檚 pre-tax loss of 拢27m has become a profit of 拢62.1m this time.

Housing legal completions were up 24% over the year at 1,882 (2011: 1,520). Turnover was 拢408m (2011: 拢319.1m).

The estimated gross development value of the land bank stands as 拢6.8bn.

Mr Stone said of the financial results: "This has been a very good year for Crest Nicholson, driven by a 24% increase in housing legal completions in the year. This growth reflects both stronger rates of sale and our rising number of sales outlets. Recently we have seen an encouraging pick-up in mortgage lending although lending volumes do still remain constrained.聽 As the group approaches its 50th anniversary in 2013, it remains on a trajectory of steady growth based on strong results and underlying business performance."