£75m pre-tax profit at Crest Nicholson

Crest Nicholson's operating margin of 15.9% puts the residential and mixed-use development company in the mid-performance band, according to John Calcutt, the group's chief executive.
"Remember that we are a medium-sized builder and that we offer a radically different solution," he said. "We have both a commercial and a social housing element, so we think we are doing well, especially given that we are opening new markets."
Crest Nicholson's latest financial results (12 months to 31 October 2003) show the turn-over of ongoing operations to be higher than those of the previous year at £540m (£510m), with pre-tax profit strengthening to £75m (£63m).
Figures from Pearce Construction are no longer included following the division's management buy-out. "Its management contracting people had come across on to our books," said Calcutt. Pearce's remaining specialist businesses, such as shop refitting, were seen as non-core to the Crest group.
Crest sold a total of 1,900 houses, similar to the figure in the previous year, but with the average price climbing to £239,000 (£225,000).
"That figure will fall to £215,000 during 2004 as we move into the lower and middle-market sectors, plus there will be an impact of moving the group slightly out from the South East and into the Midlands," said Calcutt.
"Housebuilding has become much more sophisticated. You have to provide a balanced community and that means more social housing."
Looking forward, Crest is working on a joint venture with Morley Fund Management to develop 315 acres of land at Chertsey, Surrey, on a site formerly owned by the Defence Estates Research Agency. It plans to convert 40ha of the site, which is north of the M3, into an office business park.