A Vision
THAT  
INSPIRES
20 1 2
Crest NiCholsoN  
DireC tors’ report & A CCouNts
31
sT
 oc ToBER 2012  
Key performANCe 
iNDiCAtors
Financial and business
Return on capital in the last two 
financial years
20% +
Operating profit 
£73.3m
2011: £56.4m
Gross profit margin
27.4%
2011: 28.6%
Net profit
£63.9m
2011: £40.5m
Net debt
£30.3m
2011: £42.8m
Short term land bank units
16,959
2011: 14,772
Strategic land bank units
12,623
2011: 14,259
Land bank gross  
development value
£6,799m
2011: £6,256m
sustainability
Homes delivered to Code for 
Sustainable Homes level 3  
and above
45%
2011: 38%
Homes delivered to Code level 4
15% 
2011: 4%
Reduction in Annual Injury
Incidence Rate since 2008
48% 
2011: 63%
Waste diverted from landfill
94%
2011: 89%
Homes built on brownfield land
82%
2011: 82%
Customer service
(independent rating) 
5 STAR
2011: 5 star
People would recommend 
Crest Nicholson to a friend
(independent survey)
9/10
2011: 9 out of 10
Business Review Welcome Governance Financials To deliver that ambition, which remains as true today as when the Group was formed 
nearly 50 years ago, we have been on a journey of innovation and transformation to 
position the Group for profitable growth. 
Whether carrying out systematic scientific research into low carbon housing solutions, 
re-inventing how we work with our supply chain, or developing our product for a rapidly 
evolving market, the focus is delivery, generating quality and choice for our customers 
and sustainable business value for our shareholders. For crest nicholson, this is a  
vision that inspires.
crest nicholson is a leading developer of  
sustainable housing and mixed-use communities. 
We aim to improve the quality of life for individuals 
and communities by providing better homes, 
workplaces, retail and leisure spaces in which  
people aspire to live, work and play – now and  
in the future.
A Vision 
THAT  
INSPIRES...
Key Performance indicators 
A Vision that inspires... 1
our Group at a Glance  4
Group structure 5
Key Facts 5
chairman’s statement 7
chief Executive’s Review  8
The crest Difference 16
Group strategy for Growth 18
A snapshot of our Developments  20
2012 Key Facts 21
Financial Review 24
Risks and Uncertainties 28
sustainability Review 32
Managing sustainability 33
sustainability strategy 33
Keeping the customer at  
the Heart of the Business  36
Partnering to Deliver  
sustainable communities 37
Where Good Design  
Meets Low carbon 38
A Responsible and Ethical Business 39
independent Auditor’s Report  57
consolidated income statement 58
consolidated statement  
of comprehensive income 59
consolidated statement  
of changes in Equity 59
consolidated statement  
of Financial Position  60
consolidated cash Flow statement 62
notes to the consolidated  
Financial statements 63
company Balance sheet 86
notes to the company  
Financial statements 87
Board of Directors 42
Holdings Board 44
operating Board 44
Directors’ Report 46
corporate Governance 48
statement of Directors’  
Responsibilities 55
Business Review Welcome Governance Financials A VisioN  
thA t iNspires  
ChANge
Noble park, epsom 4  DiREc ToRs’ REPoRT & A ccoUnTs 2012
LONDON
Bromley
Bexley
Croydon
Sutton
Merton
Lambeth
Tower
Hamlets
Greenwich
Wandsworth
Newham
Brent
Ealing
Hounslow
Hillingdon
Harrow
Barnet
Enfield
Haringey
Waltham
Forrest
Redbridge
Havering
Barking & 
Dagenham
Hackney
Southwark
Camden
Islington
City of
London
City of
Westminster
Kensington 
& Chelsea
Hammersmith
& Fulham
Richmond
upon Thames
Kingston
upon 
Thames
Devon 
Cornwall 
 t n e w G
Glamorgan
Hereford 
and Worcester
Shropshire
e r i h s d r o f f a t S
 e r i h s m a h g n i t t o N
Lincolnshire
Derbyshire
Cheshire 
Greater
Manchester
Bedford-
shire  
Essex 
Berkshire 
Oxfordshire 
e r i h s n o t p m a h t r o N
Leicestershire
Warwickshire 
Wiltshire 
Dorset 
Somerset
Bristol
Kent  
East Sussex
West
Sussex 
Isle of
Wight 
Surrey Hampshire  
Suffolk
Cambridgeshire
e r i h s m a h g n i k c u B
 
Powys
Gwynedd
Conwy
Denbighshire
& Flintshire
North
Lincolnshire
East Riding
of Yorkshire
West 
Yorkshire
South
Yorkshire
Lancashire
SOUTH WEST
SOUTH
EASTERN
Norfolk
Gloucestershire  
Lambeth
Tower
Hamlets
Greenwich
Newham
Wandsworth
Hackney
Southwark
Camden
Islington
City of
London
City of
Westminster
Kensington 
& Chelsea
Hammersmith
& Fulham
Lewisham
LONDON
West
Midlands
e r i h s h t u o m n o M
e r i h s d r o f t r e H
our group 
At A glANCe 
our operational focus remains concentrated in the 
southern half of England with an emphasis on creating 
well designed homes in sustainable communities. 
our portfolio meets the needs of a wide range of 
purchasers, from first time buyers to investors, with  
a product range that includes houses, apartments  
and commercial units on mixed-use developments.
 
Active sites
Business Review Welcome Governance Financials 5  DiREc ToRs’ REPoRT & A ccoUnTs 2012
group struC ture Key f ACts
further iNformA tioN
WWW.cREsTnicHoLson.coM
Privately owned 
Group with  
50 years of heritage.
Previously listed  
for 39 years on the 
London stock 
Exchange  
(1968–2007).
Four regional housebuilding divisions –
eAsterN, south, south West, l oNDoN 
mAjor projeC ts DiVisioN  
(Crest NiCholsoN regeNerA tioN)
specialising in larger scale partnership developments with public and private vendors, 
including residential and mixed-use schemes.
strA tegiC lAND DiVisioN
focusing on sourcing large land sites for medium to long term development  
by the Group’s other divisions.
the Crest NiCholsoN group operA tes through  
its holDiNgs Bo ArD
DAily operA tioNs  
are directed by the operating Board of crest nicholson PLc.
All DiVisioNs operA te 
through their own local management boards, each of which is accountable to the 
Group operating Board.
For full details of our corporate governance standards and processes,  
please see page 48.
Bath riverside, Bath rowan p ark, Mitcham Bolnore Village, Haywards Heath
DistiNC tiVe positioN  
in the UK housing market with a  
strong open market average sale price 
(£230,000) and higher sales per outlet 
per month. 
pro VeN trACK reCorD  
of delivering award winning,  
well designed, high quality  
residential communities.
stroNg  
strategic and short term land banks 
with a high proportion of consented land.
Eastern south south West Major 
projects 
(cnR) 
strategic 
land
London
Crest NiCholsoN
Business Review Welcome Governance Financials Business Review
rosewood, Colchester
Business Review Governance Financials Welcome 7  DiREc ToRs’ REPoRT & A ccoUnTs 2012
The Group’s excellent 
performance demonstrates  
the health and strength of our 
business model and ultimately  
the delivery capability, skills  
and longstanding experience  
of our people.
This year the Group has delivered increased output, 
sales volume and operating margin in a housing 
market that has altered significantly since 2008, 
and that is still suffering the effects of the global 
credit crunch and restricted mortgage availability.
one of the main drivers of these excellent results  
is crest nicholson’s own workforce, who have once 
again demonstrated resilience and adaptability  
in implementing the Group’s strategy for growth.  
i thank them wholeheartedly for their contribution.
Allied to this strength of talent is ‘the  
crest Difference’ – the Group’s ethos and delivery  
of high quality design and sustainable development 
focused on the needs of customers and 
communities. This is a valued heritage – the 
Group’s DnA – and the Board has continued  
to emphasise its constant renewal to meet the 
demands of an evolving market, technology 
challenges, and the ever changing complexities  
of regulation that are part of the Government’s 
‘zero carbon’ timeline for new housing. 
While the operating environment remains 
challenging, i believe that this focus on customers, 
design and sustainability creates the right culture 
of innovation for delivering the new homes in which 
today’s purchasers and those of tomorrow will  
want to live. 
on a foundation of secure finances and with  
the full support of our shareholders, the  
Board’s priority has been to build on last year’s 
robust performance. The continuing drive has  
been to deliver business value through the  
acquisition of sites in prime areas; consensual, 
community focused planning outcomes; and  
well designed, viable, sustainable developments.  
in addition, the Group has successfully partnered 
with the public and private sector to bring forward 
sites and projects in its operating regions across  
the southern half of the country. 
in this light, we have welcomed the Government’s 
presumption in favour of sustainable development  
and the measures taken not only to kickstart 
housing development, but also the intention  
to simplify planning processes and reduce the 
regulatory burden. in the Board’s view, the 
streamlined planning framework currently 
proposed is much needed. We are not calling for 
deregulation, but rather for clarity on the standards 
that should apply and a means to a resolution of 
conflicting regulations that can affect the quality, 
viability and delivery of residential development. 
While acknowledging that the Group has 
successfully negotiated significant financial  
hurdles over the last two years with the help  
of its shareholders and lenders, the Board  
remains alert to economic uncertainty in the 
Eurozone and globally. in addition, consumer 
confidence continues to fluctuate and mortgage 
availability still constrains the market. The Board 
continues to exercise effective control through a 
robust governance framework that provides the 
necessary oversight of decision making in land 
acquisition, planning and project delivery.  
The outcome is an extremely strong land bank  
and development pipeline.
i am grateful to the Board for their continued  
support and effectiveness. The senior management 
have great depth of experience in the sector and  
have successfully led the Group through several 
fluctuating economic cycles. Armed with this 
knowledge and experience, i am confident in  
the Board’s ability not only to respond to future 
changes in the business environment but, also to 
exploit to the full the opportunities that an evolving 
market will bring. 
William rucker
chairman
ChAirmAN’s 
st AtemeNt
our focus on 
customers, design 
and sustainability 
creates the right 
culture of innovation 
for delivering the new 
homes in which 
today’s purchasers 
and those of tomorrow 
will want to live.
Business Review Governance Financials Welcome 8  DiREc ToRs’ REPoRT & A ccoUnTs 2012
As the Group approaches its 50
th
 anniversary in 2013, it remains  
on a trajectory of steady growth based on strong results and  
underlying business performance. 
stroNg fiNANCiAl resul ts 
from soliD fuNDAmeNt Als
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.
commercial revenues were broadly level with 2011, 
generated from the sale of a significant commercial 
premises at Bristol and a partnership with a major 
supermarket retailer at Milton Keynes.
This strong operational performance is reflected in 
the financial results, with revenue at £408m, up 28% 
on 2011, and operating profit at £73m, up 30%. 
operating margins at 18.0% have improved against 
the 17.7% achieved last year .
Equally pleasing was the growth in our consented 
land bank, which rose from 14,772 plots to 16,959 
plots at october 2012. A significant part of this growth 
came from the conversion of plots from the strategic 
land bank, having secured planning consent on four 
strategic land sites in the year .
in parallel with investment in the future of our 
business, we generated positive cash flow through  
the year and are going into the next financial year 
confident that our southerly geographic positioning, 
distinctive design and sustainability credentials, and 
strong partnering approach will enable us to continue 
delivering good business returns in the year ahead.
the mArKet 
Despite a difficult economic backdrop, which has put 
real incomes under pressure, the housing market has 
proved to be very resilient through the year . indeed, 
our overall sales rates were stronger this year than in 
2011, notwithstanding some softness around the time 
of the Jubilee celebrations in June and again during 
the London olympics in the summer . 
As a developer in the southern half of the country, 
crest nicholson has its operations in regions that 
typically have better employment prospects and 
higher earnings than the national average, and this 
correlation serves the business well in more difficult 
markets. in these parts of the country the greatest 
imbalance exists between housing demand and 
supply, which, all other things being equal, should 
provide support for prices.
The constrained level of mortgage lending continues 
to be the greatest barrier to an improved level of 
participation in the housing market. As a group,  
we have done much this year to engage with the 
Government and government sponsored schemes to 
try to stimulate house building and house purchases. 
We remain hopeful that such support will be effective 
in improving access to the housing market for those 
who aspire to own their home.
stephen stone
chief Executive
Chief eXeCutiVe’s 
reVieW 
At crest nicholson 
we believe that 
creating successful 
sustainable 
communities is not 
about bricks and 
mortar, but people.
Business Review Governance Financials Welcome 9  DiREc ToRs’ REPoRT & A ccoUnTs 2012
pArtNeriNg for gro Wth
our business model, page 17, is underpinned  
by our 50 year heritage and capitalises on our  
key strengths in targeted land acquisition, 
consensual planning success, outstanding  
design and quality delivery. 
The fact that the Group has traded very well in  
the current market is evidence of the trust we have 
built with both public and private sector partners 
who, i believe, recognise the long term value that 
flows from our approach. it has been an 
outstanding year for our land bank (especially 
strategic plots), and we have also achieved 
planning permissions and milestones on a 
number of key developments. 
Among these is Bath Riverside, which is an 
important regeneration site in the heart of  
a UnEsco World Heritage city. After a longer 
planning stage than we would have wished for,  
we have moved well into delivery at Bath, with  
142 unit completions this year . We are currently 
working to create the supporting infrastructure, 
including leisure spaces, roadways and bridges. 
other notable milestones include permissions 
obtained for 274 units at Wokingham, Berkshire 
and 1,695 units at Tadpole Farm, swindon.
At crest nicholson we believe that creating 
successful sustainable communities is not about 
bricks and mortar, but people. At centre stage are 
not only our customers, but also local authorities 
responsible for delivering new housing and local 
people, including those for whom new 
development may not always be welcome.  
our approach has always been based on clear 
interaction with all relevant groups to understand 
the spectrum of opinion and interests. 
industry leading knowledge in planning,  
design, sustainable construction and regulatory 
compliance is not enough on its own. We also 
bring the mindset and skills to facilitate honest 
engagement, which requires a commitment to 
build relationships; to listen and respond genuinely 
and to help create and implement a shared vision 
in tune with local needs and expectations – always 
accepting that not everyone can be satisfied. 
We take great pains to go the extra mile by openly 
sharing our senior talent and expertise with local 
authorities and other stakeholders – often in 
person, with sleeves rolled up, helping to work 
through possibilities and challenges. in April we 
held one such Vision Workshop with planning 
officers, local members and county councillors 
from Runnymede to invite their input in identifying 
the key themes for a new community at our site at 
Longcross. This is part of an ongoing process and 
we will present the progress we have made to 
them early next year . 
uNit CompletioNs 
this yeAr A t  
BAth riVersiDe
Bath riverside, Bath
142
Business Review Governance Financials Welcome 10  DiREc ToRs’ REPoRT & A ccoUnTs 2012
supportiNg AND  
iNCreAsiNg DeliVery
it is the strength and depth of talent from senior 
management to apprentice level that inspires 
confidence in the Group’s capacity to deliver a  
strategy for growth, and a managed increase  
in output over the next three to four years. 
cost effective, quality delivery is essential.  
The Government itself recognises the social 
imperative for new housing, as well as the economic 
impetus that comes from it. The Home Builders 
Federation (HBF) reports that every home built 
creates 1.5 full time jobs, plus up to four times  
that number in the supply chain, meaning that for 
every £1 spent, an estimated £2.84 of wider economic 
activity is generated.
As a group, we have welcomed central and local 
government commitment on the housing growth 
agenda and have successfully bid for opportunities 
including Get Britain Building, which has enabled  
us to bring forward seven schemes representing  
709 new homes. We have also remained steadfast  
in helping first time buyers by supporting government 
backed shared equity schemes including FirstBuy  
and HomeBuy Direct, and remain committed to 
supporting the joint industry government initiative 
newBuy, helping to bridge the deposit gap.
is Also the  
first iNgreDieNt 
iN CreA tiNg  
A leg ACy
of VAlue
gooD 
DesigN
Kings gate, Birmingham
Business Review Governance Financials Welcome 11  DiREc ToRs’ REPoRT & A ccoUnTs 2012
operA tioNAl highlights  
AND ChAlleNges
Design excellence is a key differentiator for  
crest nicholson and a notable example is  
Rowan Park, Merton which was Project Winner  
in the Housing Design Awards 2012. Good design  
is also the first ingredient in creating a legacy  
of value. i am reminded of this when i look at  
Port Marine, Portishead where the masterplan we 
first developed 10 years ago has delivered delightful 
homes and high quality public space enhanced  
by distinctive sculpture, proving that good design 
stands the test of time. it is equally true that urban 
planning and design must continue to move 
forward, and for this reason, we are pleased to be 
working in collaboration with the Town and country 
Planning Association to explore how we embed 
Garden city principles into our future developments. 
We are applying our ethos equally in London.  
our London operations are based on a model of 
prime site acquisition, an unwavering commitment  
to quality design and build, and an ability to bring sites 
forward efficiently through smart, lean processes. 
A highly skilled team with a passion for the capital 
is a significant factor in meeting the challenges  
and constraints inherent in London development. 
Quality and excellence are just as sought after  
by buyers in the capital as anywhere and the very 
robust sales of our elegant, functional apartments 
at ixia in shoreditch are proof of this. 
our focus on customers has remained as strong  
as ever and in March 2012 we maintained our 5 star 
rating in the HBF industry wide independent survey. 
The results from our own customer satisfaction 
survey show we have maintained a high level of 
performance, but have scope to do more to reach 
our own stretching targets. 
sustainability is another core value that threads 
itself through every part of our process. The Group 
has remained a consistent high performer in the 
next Generation industry benchmark for the last 
five years, through our focus on high standards of 
governance, sustainable delivery and transparent 
reporting to globally recognised standards. 
Fundamentally, the sustainability of our business  
and our developments centres on future thinking  
and innovation, which are essential to meeting 
major environmental challenges including climate 
change and resource depletion.
We continue to anticipate and prepare for the 
Government’s target for all new homes to be  
‘zero carbon’ by 2016. The award winning AiMc4 
consortium homes built at noble Park in Epsom 
have taken us well along the road to delivering  
well designed low carbon homes cost effectively 
through a ‘fabric first’ approach that provides  
highly energy efficient dwellings driven by  
customer needs.
This year we have challenged ourselves to look 
even further to the future by engaging with external 
experts to develop a 10 year sustainability strategy 
for the Group. it will focus on long term value 
creation in the context of emerging trends and 
issues including evolving society, customer needs 
and product design. This will deliver a sustainable 
business model, capable of delivering value now 
and into the future for customers, wider society  
and shareholders. 
of our Customers 
sAiD they W oulD 
reCommeND us  
to A frieND
9/10
Business Review Governance Financials Welcome Apprentice day at Noble park, epsom
A VisioN  
thA t iNspires  
A geNerA tioN 14  DiREc ToRs’ REPoRT & A ccoUnTs 2012
AppreNtiCes
Are W orKiNg 
With us 
 
(7.6% of our W orKforCe)
45
AWArDs AND reCogNitioN
housing Design Awards Project Winner 2012: Rowan Park, Mitcham
housebuilder Awards 2012 Best Low or Zero carbon Development –  
AiMc4 houses at noble Park, Epsom
hBf Annual Customer 
satisfaction survey
5 stars for customer service in March 2012,  
for the third consecutive year
Next generation sustainability 
Benchmark
second position among sustainability leaders  
in our industry, for the fifth consecutive year .
NhBC health and safety commended and Highly commended awards  
for our employees in health and safety leadership,  
engagement and on site management
NhBC pride in the job six of our site managers achieved Quality Awards
NhBC regional Regional award winner multi-storey category:  
Terry Huntingdon, Kaleidoscope, cambridge
pension Quality mark The leading standard recognised by government  
and the HR/pensions industry
Apprentice day at Noble park, epsom
Business Review Governance Financials Welcome 15  DiREc ToRs’ REPoRT & A ccoUnTs 2012
AN employer of ChoiCe
Without our people none of this would be possible 
and i am grateful for their hard work and dedication, 
which has been recognised once again this year  
in several external commendations in the nHBc 
awards, the industry’s leading benchmark for site 
management and health and safety leadership. 
We aim to be a responsible and ethical employer  
that offers everyone the opportunity to excel in a 
fair and safe environment. i am determined that  
we should maintain and strengthen our skillbase 
at all levels across the Group and develop our 
capacity for the future. once again, we have 
welcomed graduates and apprentices to the Group 
this year and invested in high quality training and 
career development. it is particularly pleasing  
to see one of our young female apprentices who 
came on board in 2011 moving on with us  
to become a trainee site manager . 
As the Board director responsible for occupational 
health and safety, i am pleased that our Annual 
injury incidence Rate has outperformed our sector 
peers and the construction sector as a whole. 
Disappointingly the reduction in 2012 has not 
matched the exceedingly good performance  
we have made annually since we base lined our 
data in 2008. We remain committed to continuous 
improvement and to that end we have reinforced 
our Group health and safety team with three 
appointments. Each of these roles combine  
health, safety and environmental responsibilities, 
reflecting our integrated approach to preventing 
and managing risk on our sites.
outlooK 
in the near term, our business is in good shape  
to continue growing volumes, as we open an 
increasing number of sales outlets and the new 
London division delivers its first legal completions.
Public policy measures to support the housing 
sector and to help first time buyers are providing 
useful support, but activity is likely to be 
comparatively subdued while mortgage  
lending remains constrained. 
We will continue to work with all our partners  
to deliver well designed and sustainable homes 
that delight our customers. in the longer term, the 
structural imbalance between supply and demand  
is likely to provide strong support for our business. 
nurturing existing talent within our workforce  
and developing the skillbase of people joining  
our apprentice and graduate schemes will remain  
a fundamental part of our strategy to support  
further growth. 
With a high quality land bank and the team to 
deliver the schemes upon which crest nicholson 
has built a proud 50 year reputation, we look 
forward to the future with confidence.
stephen stone
chief Executive
reDuC tioN 
iN ANNuAl 
iNjury rA te 
siNCe 2008
48%
Business Review Governance Financials Welcome 16  DiREc ToRs’ REPoRT & A ccoUnTs 2012
the Crest 
DiffereNCe
crest nicholson has developed a focused business 
model emphasising customer led design and 
sustainability in the planning and delivery of 
schemes, irrespective of size and location.  
our delivery encompasses major mixed-use 
projects through to smaller housing developments 
in the southern half of England. 
Customers
Providing an outstanding 
customer experience 
from start to finish, 
delivering quality homes 
and high levels of 
customer satisfaction.
DesigN
Reinforcing an 
aspirational, design led 
approach to create 
vibrant, mixed-used 
communities where 
people want to live,  
work, learn and play.
sust AiNABility
integrating the three 
pillars of social, 
economic and 
environmental 
sustainability to deliver  
a legacy of enduring 
value to communities 
and to the business.
Long term value creation
DesigN
Cust omer s
sustAiNABil it y
our focus
our expertise
success
our continuing journey
the Crest 
DiffereNCe
Business Review Governance Financials Welcome 17  DiREc ToRs’ REPoRT & A ccoUnTs 2012
stroNg lAND BANK 
Well located sites of quality  
and variety 
our well located, quality land bank is made up of varied sites mainly across the southern  
half of England and in London (approximately 70% of the land bank) and selected prime  
areas in the southwest of England (approximately 25% of the land bank). The strategic land 
bank, representing 43% of the total, is an important factor in the Group’s ability to generate 
sustainable, robust margins over time and has good prospects for obtaining planning consent 
in due course. 90% of the short term land bank has planning consent. The composition and 
quality of our land bank therefore provides the business with a stable platform for value 
creation both in the near and longer term. 
suCCessful plANNiNg out Comes
Bringing developments through 
planning, offering excellence in 
design and building consensus 
with communities 
our track record of gaining community support and converting planning permissions is a 
critical factor in acquiring strategic land at a competitive price as landowners recognise the 
expertise of our management team in successfully bringing land through the planning process. 
This has been a key part of the Group’s industry leading operating margins of 18% and a RocE 
of 20%+ in the past two financial years. 
plANNiNg, DesigN AND CoNstruC tioN eXCelleNCe
High quality, desirable homes 
forming the platform for vibrant 
communities 
inspirational masterplanning, customer led design and high quality construction are essential 
for creating new homes and sustainable places where people aspire to live. customer demand 
for crest nicholson homes is reflected in continuing strong sales and margins in 2012. 
leg ACy AND loNg term steWArDship
Creating places of lasting value 
with sound infrastructure and 
processes for long term 
management 
As part of our mission to help create places in which vibrant, viable and sustainable 
communities can grow and thrive, we contribute to local public infrastructure, develop 
management strategies for maintaining buildings and public spaces, and, with our customers, 
we study how our homes are performing. This enhances the quality and desirability of our 
evolving designs – strengthening brand reputation and delivering value over the long term.
fiNANCiAl st ABility 
Robust finances and a sound 
balance sheet 
Throughout and after the downturn, the Group has traded well and delivered strong  
operational results.
AppropriA te sCAle of BusiNess
A scalable business platform that 
supports managed growth 
The Group’s business structure is scaled to deliver a strategy of steady growth which enables  
the management team to combine effective strategic leadership with a significant degree of 
hands on involvement in day-to-day operations.
pArtNeriNg for sust AiNABle DeVelopmeNt 
Bringing experience and 
knowledge to public sector,  
local authority and  
private partnerships
our team has leading expertise in land acquisition, planning, high quality design and delivery, 
and customer care. combining these with the expertise of our development and supply chain 
partners provides unique opportunities to innovate and improve within environmental limits.
tAleNt AND eXperieNCe
Highly experienced 
management, strength in depth 
at all levels and continuous 
investment in skills 
The Group has a highly experienced management team with a significant strength and depth  
of expertise in the property development sector . 
iNNoVAtiNg AND iNVestiNg iN lo W CArBoN DeliVery
Long term supply chain 
partnerships, innovations and 
resource efficiency to deliver new 
homes for sustainable lifestyles 
To futureproof our offering, we research emerging trends in customer needs, expectations and 
lifestyles, prepare for the challenges of adapting to climate change, and work closely with our 
suppliers, partners and contractors to develop innovative, low carbon solutions which respond  
to the Government’s zero carbon timeline. 
ho W We DeliVer
f oCuseD BusiNess moDel 
Business Review Governance Financials Welcome 18  DiREc ToRs’ REPoRT & A ccoUnTs 2012
park Central, Birmingham
group strA tegy 
for gro Wth
A carefully managed growth strategy  
while maintaining excellence in all areas. 
ChoseN for  
our Key streNgths
sustainable developments with 
an enduring positive legacy.
High quality planning, design 
and construction.
True partnering at all stages  
of the development process.
Responsible, transparent 
operations to safeguard  
people and the environment.
By uNDerst ANDiNg
what our customers want 
and considering society’s 
emerging needs, the 
business delivers value today 
and invests in the future for 
all our stakeholders.
our group AmBitioN
creating well designed,  
high quality and sustainable 
homes and inspiring places 
in which communities can 
grow and thrive.
 
Business Review Governance Financials Welcome 19  DiREc ToRs’ REPoRT & A ccoUnTs 2012
reAlisiNg our oB jeC tiVes
Key oB jeC tiVes foCus AreAs plAN of AC tioN
VAlueD p ArtNer
Continue to be a  
partner of choice
Be a partner of choice for the public and private 
sectors in London and the south of England.
High quality, desirable homes and  
mixed-use buildings.
Well designed sustainable developments  
in primary locations.
lAND supply
Selectively grow  
the land bank
Acquire appropriate number of well located, 
quality sites for short term land bank.
strong shareholder returns and  
enhanced margins.
secure strategic sites and seek viable  
planning permissions. 
A sustainable land supply.
Leverage the Group’s significant track record and 
reputation in the land market to further increase 
the number of larger development sites.
Future development pipeline.
DeliVery AND operA tioNs
Managed growth  
of the business 
Leverage growth potential across the Group. increased output per annum with a 
particular focus on growth potential in  
Major Projects and London divisions.
continue to operate the business at an 
appropriate scale.
optimum scale of business to enable 
continued strong governance through senior 
management involvement in operational 
detail as well as strategy.
Continue to pursue 
operational excellence
Maintain high standards of quality and efficiency 
in all areas of operation.
Quality homes ready and defect free at point  
of completion.
Reinforce customer service culture. A stress free acquisition process for our 
customers and timely, courteous service 
post-occupancy.
Continue to improve the 
Group’s capital structure
Reduce levels of gearing in line with publicly 
reporting peer group.
Deleveraged Group in due course.
Customers, mArKet AND iNDustry
Anticipate and meet  
evolving market trends
continue to research and develop innovative 
customer led products and services. 
An offer that delights our customers and 
meets tomorrow’s market expectations as 
well as today’s.
Show industry leadership in 
housing policy development
Play an active role in shaping government 
financial, planning and regulatory policy.
cost effective customer focused solutions, 
particularly in the area of ‘zero carbon’ homes.
Business Review Governance Financials Welcome 20  DiREc ToRs’ REPoRT & A ccoUnTs 2012
A sNApshot of  
our DeVelopmeNts 
st peter’s place, London W6 
The acquisition of a very well located 
residential address between chiswick and 
Hammersmith and within a much sought 
after conservation area.
A select and highly specified development  
of 41 luxury one and two bedroom 
apartments and exclusive three and five 
bedroom townhouses.
Responding to the scarcity of new homes 
and significant pent up demand.
optimising revenue and enhancing sales 
through a meticulous design process. 
Kilnwood Vale, crawley
A new 132 hectare community comprising 
2,500 homes west of crawley.
Working in partnership with Horsham 
District council and crawley Borough.
original option signed in 2002 and 
promotion through the core strategy and 
Area Action Plan followed. Planning was 
granted in october 2011 and the site was 
subsequently purchased in october 2012.
one of the first schemes to start on site 
following successful £2.3m Get Britain 
Building funding allocation.
seCuriNg QuAlity sites AND A 
sust AiNABle supply of lAND
oBt AiNiNg CoNseNsuAl 
permissioN
We focus on securing sites in good central 
locations, carefully tailoring every scheme  
to complement and enhance the local area. 
The homes we are creating at st Peter’s 
Place are perfectly aligned to the locality 
and will appeal to sophisticated and  
exacting purchasers. 
t revor selwyn
Managing Director  
crest nicholson London
i am delighted to see this site being built up. 
it has been over six years since the first 
proposals were initially considered. People 
do not realise how long it takes to bring a 
site from the strategic level to construction. 
This is a good example of cooperation 
between neighbouring authorities. 
Councillor ian howard
Horsham District council’s cabinet Member 
for Living and Working communities
Bath riverside, Bath
A new urban quarter within a UnEsco World 
Heritage city on an 18 hectare brownfield site.
Delivering up to 2,281 private, rented and 
shared ownership homes, up to 675 student 
rooms, and 50,000sq ft of non residential space 
including a doctors’ surgery and primary 
school (first occupations in 2012).
An open, transparent partnership with Bath  
& north East somerset council, curo Group 
(former somer community Housing Trust), and 
Homes and communities Agency has allowed 
the scheme to evolve over many years and be 
delivered with local and regional support.
DeliVeriNg projeC ts through 
CommitmeNt AND fleXiBility
Regenerating the city’s vital riverside  
corridor has been helped to a great extent  
by crest nicholson’s commitment to the 
project over many years. We are now seeing 
the results of their proactive and collaborative 
approach in partnership with us, as we see a 
new community spring up to provide housing  
for a new generation of Bath residents.
Councillor Cherry Beath
cabinet Member for sustainable Development, 
Bath & north East somerset council
Business Review Governance Financials Welcome 21  DiREc ToRs’ REPoRT & A ccoUnTs 2012
2012 Key f ACts
1,882 2,145 16,959 12,623 50
plots CoNVerteD 
from strA tegiC 
lAND BANK 
short term lAND 
BANK of 16,959 
plots oN 72 sites
strA tegiC lAND 
BANK of 12,623 
plots oN 26 sites
50 sites iN 
proDuC tioN A t 
31
st 
oCt 2012
NeW homes 
DeliVereD
port marine, Portishead
An integrated self sustaining mixed-use 
and tenure community located on a  
26.5 hectare brownfield site, in the former 
industrial quarter of Portishead Quays.
incorporating several residential character 
areas designed to reflect the gradual 
historical growth of the community.
Public realm marked by its continuity, 
sense of space, attractiveness, comfort, 
safety, access for impaired mobility  
and an integrated design approach.
Awarded Building for Life Gold.
DesigNiNg QuAlity  
AND CreA tiNg leg ACy
Throughout the life of this development, 
crest nicholson has demonstrated an 
exemplary approach to regeneration.  
Port Marine sets a new benchmark  
for residential development within the 
south West.
 
Noel edwards
Former Director of Planning,  
north somerset council
Noble park, Epsom
A unique £6.3m research consortium 
supported by the Government backed 
Technology strategy Board. 
Delivering low carbon homes through 
innovative materials and a ‘fabric first’ 
approach without renewable energy 
technologies. 
Reduced costs for heating and carbon 
savings embedded for the life of the home.
Delivering to advanced energy 
performance code level 4 (energy), and 
driving out the cost differential between 
these new designs and designs developed 
for the 2010 Regulations.
iNNoVAtiNg to DeliVer lo W 
CArBoN homes through AimC4
Aldermere, cheshunt
Prime Minister David cameron and Deputy 
Prime Minister nick clegg announced a 
series of measures to support the growth 
of the UK housing market at our 
Aldermere development in cheshunt. 
25% of buyers at Aldermere have 
purchased through FirstBuy and other 
shared equity schemes, demonstrating  
the need and ongoing demand for  
support schemes. 
WorKiNg With go VerNmeNt 
to help Buyers
This research project was exactly the  
bold step needed to address reduction in 
carbon emissions from new homes. 
stimulation of innovation in the UK supply 
chain will yield new, cost effective industry 
solutions and the expertise of the partners 
will ensure a step change to underpin the 
delivery of sustainable communities.
stephen stone
chief Executive,  
crest nicholson
owning my own home seemed an 
impossibility and i put it out of my mind 
until i learned about FirstBuy. When i 
discovered that i could own my own home 
after all, i did some internet research and 
found Aldermere in cheshunt.
jenny Woods
FirstBuy purchaser,  
Aldermere, cheshunt
Business Review Governance Financials Welcome A VisioN  
thA t iNspires  
gro Wth
the laurels, Cedars p ark 24  DiREc ToRs’ REPoRT & A ccoUnTs 2012
fiNANCiAl 
reVieW
port marine, portishead
iNCreAse iN 
housiNg uNit 
CompletioNs
24%
Business Review Governance Financials Welcome 25  DiREc ToRs’ REPoRT & A ccoUnTs 2012
resul ts 
Results for the financial year ending 31
st 
october 
2012 are strongly ahead of the prior year, driven  
by a 24% increase in housing unit completions.
sales revenues of £408m are up 28% on 2011,  
and operating profits up by 30% at £73.3m  
(2011: £56.4m). operating margins of 18.0%  
are 0.3% ahead of the 17.7% achieved in 2011.
After financing costs and taxation, the Group  
recorded a profit of £63.9m (2011: £40.5m),  
up 58% on the prior year .
The business generated cash from operations  
of £28.8m (2011: £8.9m) while continuing to  
invest in land and work in progress. inclusive  
of £16.3m (2011: nil) of funding secured under  
the Government’s Get Britain Building scheme, 
cash and cash equivalents at the end of the year 
amounted to £150.1m (2011: £121.9m).
trADiNg ANAl ysis
The business continues to operate in one  
principal segment, which is residential 
development. in addition to this core activity,  
the business has a portfolio of commercial 
development opportunities, principally on  
mixed-use sites, which are delivered as part  
of a master plan for the overall development.
housiNg
Total crest nicholson housing completions in 2012 
were 1,882 units, up 24% on the 1,520 completions 
achieved in 2011. The growth in volume over the 
prior year was driven by an improved rate of sale 
during 2012, and aided by a stronger opening 
forward sales position. in addition, the Group 
expanded the number of sales outlets from  
which it operated during the year, including its  
Bath Riverside development, which delivered  
142 unit completions in its first year of operation. 
 
Average selling prices for open market units  
in 2012 were marginally higher, at £230,000 
compared to £224,000 in 2011. This increase 
included some mix effects but also incorporated  
a modest level of sales price appreciation.
Forward sales at 31
st 
october 2012 for 2013 and 
later years amounted to £129.6m (2011: £142.2m), 
which includes 19% of forecast 2013 open market 
housing sales (2011: 23%).
miXeD-use CommerCiAl
commercial revenues in 2012 of £26m were 
principally derived from two of the Group’s 
mixed-use developments. At Bristol Harbourside,  
a 51,800ft
2
 office block was completed and sold 
with the benefit of partial occupation, while at the 
oakgrove development in Milton Keynes, a food 
store (let to a major retailer) and other ancillary 
commercial units were purchased by a pension 
fund and revenues have been recognised in line 
with the stage of construction. Revenues in 2011  
of £30.6m primarily reflected the final account  
in respect of the town centre redevelopment at 
camberley, surrey.
mArgiNs
Group gross profit margin for the period was 27.4% 
(2011: 28.6%), after sales and marketing costs, 
slightly lower than the prior year . 
Administrative expenses have increased year on 
year, as the business has invested in a new division 
to bring renewed focus to its activities in London. 
notwithstanding this investment, administrative 
costs as a percentage of sales have reduced from 
11.0% in 2011 to 9.5% in 2012, as levels of activity 
have increased. operating margins have therefore 
improved by 0.3% to 18.0% (2011: 17.7%).
sAles reVeNues 
of £408m Are up 
28% oN 2011
28%
Business Review Governance Financials Welcome 26  DiREc ToRs’ REPoRT & A ccoUnTs 2012
fiNANCe Costs AND t AXAtioN
Finance costs and taxation in 2012 differ significantly 
from the preceding year, where certain charges  
and credits arose in connection with the conclusion 
of the financial restructuring of the Group in 
september 2011.
Bank finance costs in the year are significantly lower 
than the prior year, comprising only bank interest 
charges and other financial expenses. in addition to 
similar costs, bank finance costs in 2011 included a 
£63.6m amortisation of bank debt fair value discount.
The £1.8m credit for taxation reflects further 
recognition of a deferred tax asset, in respect of past 
trading losses, partially offset by the deferred tax 
expense in the year and the reduction in asset value 
arising from changes in the tax rate. in 2011,  
the Group recognised a deferred tax asset, of which 
£65.0m was in respect of previously unrecognised 
temporary differences, on the grounds that the 2011 
financial restructuring of the Group made the 
realisation of the related tax benefit through  
future taxable profits probable.
CAsh flo W  
AND fiNANCiAl positioN
The significant uplift in housing completions in  
the year, combined with higher cash receipts from 
commercial sales, has enabled the Group to re-invest 
in land and work in progress, while still generating 
positive cash flow from operations.
The value of inventories on the balance sheet  
has increased 19%, by £75.2m to £469.4m  
(2011: £394.2m), with land creditors also increasing 
from £58.3m in 2011 to £90.3m.
At 31
st 
october 2012, the Group had term loan facilities 
for £152.0m, which extended to september 2015. 
These loans were fully drawn and, along with £16.3m 
(2011: nil) of funding secured under the Government’s 
Get Britain Building scheme and other loans of 
£12.1m, total borrowings totalled £180.4m. 
cash and cash equivalents at the end of the year 
amounted to £150.1m (2011: £121.9m).
At 31
st 
october 2012, the Group had net debt of  
£30.3m (2011: £42.8m) and a gearing ratio of 8.7% 
(2011: 14.9%). The Group continues to generate  
a strong return on capital employed, at 20.7%,  
down marginally from the 21.1% reported in 2011. 
re-fiNANCiNg
After the balance sheet date, the Group re-financed 
an element of its bank loans, repaying £77m of term 
loans and entering into a new Revolving credit 
Facility for £60m, which extends for four years,  
to December 2016. 
The maturity date of £75m of the remaining term 
loans was also extended from september 2015  
to December 2016.
in addition to establishing broader banking 
relationships, these changes will provide the  
Group with a more flexible financing structure,  
closely matching drawn funds to the working  
capital requirements of the Group through the  
year and will reduce financing costs.
harbourside, Bristol
Business Review Governance Financials Welcome 27  DiREc ToRs’ REPoRT & A ccoUnTs 2012
lAND BANK
The Group’s contracted land bank is summarised in terms of units and gross development value (GDV)
1
  
as follows:
2012 2011
units gDV £m units gDV £m
short term housing 16,959 3,646 14,772 3,011
short term commercial - 235 - 285
Total short term 16,959 3,881 14,772 3,296
strategic land 12,623 2,918 14,259 2,960
Total under contract 29,582 6,799 29,031 6,256
 
 
1
  
Throughout this document Gross Development Value (GDV) means the estimated total revenue from a development at current  
values based on the Group’s current development plans for the land.
DuriNg 2012  
the short term 
housiNg lAND 
BANK hAs 
iNCreAseD By  
2,187 plots
2,187
The short term housing land bank has increased 
by 2,187 plots during 2012, principally driven by 
the 2,145 plots converted from the strategic land 
bank. other land acquisitions added 2,247 plots, 
while unit completions and the impact of re-plans 
accounted for the balance of the movement.  
The estimated GDV of the short term land bank 
has increased by 17.7%.
At the 2012 level of crest nicholson turnover,  
the short term housing portfolio represents  
9 years supply, although the growth intentions  
for the business would result in a lower figure. 
The Group remains focused on ensuring that the 
business has an appropriate number of sites open 
for sales at any one time, although faster rates of 
sale have resulted in outlet lives being shortened. 
After a very successful year in which 4 planning 
consents were gained on strategic sites and the 
resultant plot conversions, we were pleased  
to add 5 new sites to the strategic land bank,  
to ensure that this important source of longer  
term development value is maintained. 
Business Review Governance Financials Welcome 28  DiREc ToRs’ REPoRT & A ccoUnTs 2012 28  DiREc ToRs’ REPoRT AnD A ccoUnTs 2012
risKs AND 
uNCert AiNties
pro ACtiVe Appro ACh  
to risK mANA gemeNt
crest nicholson operates a risk management  
process with key risk matrices at Board and divisional 
management board levels. The risk matrices 
generated are reviewed and updated at least annually 
and at any time when significant new risks emerge.
The Group’s approach recognises that managing risk 
is a core element of executive management and that 
the risk management framework must be proactive 
and dovetail with normal business processes in order 
to drive business benefits. Making it part of normal 
business therefore means:
 ■ having a hierarchy of risk assessments;
 ■ focusing on key risks;
 ■ linking the assessment of risks  
to consequential actions;
– monitoring controls
– developing mitigating actions
– establishing ownership.
Risks are assessed in terms of their impact and 
probability and given a high, medium or low inherent 
risk ranking. Mitigating actions are considered and  
a residual risk rating is identified, which in turn helps 
to establish whether further mitigations are required.
Key AreAs of foCus
Group and divisional assessments focus on  
inherent risks that could affect the achievement  
of objectives. Divisions are instructed to make their  
risk assessments directly pertinent to their own 
business context and operations, leaving the  
Group risk assessment to pick up broader themes, 
particularly in relation to external sources of risk. 
oakwood gardens, oxhey
Business Review Governance Financials Welcome 29  DiREc ToRs’ REPoRT & A ccoUnTs 2012 DiREc ToRs’ REPoRT AnD A ccoUnTs 2012  29
AreA risK mitig AtioN oWNership
The macro-
economic climate 
continues to be 
uncertain, with  
slow growth and 
unresolved issues  
in the Eurozone
consumer confidence is undermined  
by a worsening of current economic 
conditions, leading to a rise in 
unemployment and/or pessimism  
about employment prospects.
Keep economic environment under review,  
to ensure the business can respond 
appropriately to changes in trading conditions.
Board
Mortgage lending 
continues to be 
constrained, 
particularly  
at higher  
Loan to value ratios
Mortgage availability will continue  
to be constrained, particularly for first  
time buyers requiring higher loan to  
value products.
Monitor lending product availability, work to 
increase finance availability for developments 
and seek to assist purchasers through the 
use of schemes such as the Government’s 
HomeBuy Direct and newBuy. 
consider options for alternative tenures.
Executive
Planning changes 
increase uncertainty 
and, consequentially, 
delay
The introduction of the principles of 
‘localism’ to planning matters and the  
ongoing debate in relation to the national 
Planning Policy Framework (nPPF),  
are likely to cause uncertainty and delay,  
as local authorities weigh the benefits  
of housing development against  
other pressures.
Develop understanding of the new approach 
to planning, working closely with key 
regulators and decision makers and 
incorporating planning environment 
uncertainties into assessment of land 
opportunities.
Executive 
Development costs increases in build cost arising from 
inaccurate estimating, incomplete 
tendering or failure to use business 
systems and/or comply with  
business processes. 
Regular cost reviews and analysis of projected 
costs to complete of projects. Use of ‘panel’ 
subcontractors for significant works. Monitor 
and drive compliance with core business 
systems and processes 
Executive/
Group 
Production 
Director
Recruitment  
and retention
Ability to recruit and retain staff with  
the requisite skills to secure and deliver 
sustainable developments that generate 
appropriate returns.
Ensure the Group is a desirable employer,  
with competitive packages, clear career 
progression, good communication, training  
and review processes.
Executive
Regulation changes to Government Policy on housing 
and planning gain, increasing regulation, 
cost and delay will render schemes and 
land buying unviable.
Monitor closely changes/proposed changes  
in regulatory environment and make 
representations as necessary.
Ensure financial appraisals include new 
regulatory cost assessments.
Executive
Health, safety and 
environmental 
injury to persons, potential loss of life, 
serious damage to sites and environment. 
Reputational damage and costs.
Executive Board leadership and scrutiny  
of health, safety and environment.  
Risks assessed and integrated into 
management processes from earliest stage 
(pre-acquisition). Dedicated teams in place, 
with comprehensive procedures and controls.
Board/cEo
social and environmental risk is analysed in more detail in our 2012 sustainability Report.
the role of BusiNess AssurANCe
The business has a business assurance function that reports to the Audit committee. The Audit committee 
reports to the Board and the external Auditor perform controls work as part of the annual audit. 
The business assurance work programme is designed (and flexed) to take account of the key risks identified  
by the Group, as an extension of the general remit of the function to support the achievement of the Group’s 
financial and operational objectives.
Business Review Governance Financials Welcome A VisioN  
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Kaleidoscope, Cambridge 32  DiREc ToRs’ REPoRT & A ccoUnTs 2012
sust AiNABility 
reVieW
our aspiration to deliver truly sustainable homes and  
communities requires us to balance economic, social and 
environmental factors on every scheme. High quality, low carbon 
homes set in well designed places provide communities with 
opportunities for a more sustainable lifestyle. 
At crest nicholson, we also emphasise sustainability 
throughout our development process – protecting and 
where possible enhancing local ecology and habitat, 
and continuously limiting our own operational 
impacts, with a focus on energy and carbon, waste 
reduction and resource consumption. 
We remain focused on bringing forward projects 
efficiently and responsibly in partnership with our 
stakeholders. With this in mind we have continued to 
strengthen our relationship with government, taking 
part in constructive dialogue on further increasing 
supply, both to meet housing needs and to fuel 
economic recovery. 
our focus on innovation gives us a distinctive place  
in the housing market. We have continued to break 
new ground through our AiMc4 programme in 
readiness for the 2016 ‘zero carbon’ homes 
requirement – a key challenge for our sector . 
We are now converting the learning and research 
from AiMc4 into technical advances that stands us  
in good stead to meet the Government’s ‘zero carbon’ 
housing agenda cost effectively, as well as delivering 
customer benefits and yielding competitive advantage 
in the low carbon economy. 
The Group maintains its leading position in the  
next Generation Benchmark, achieving second 
position with a significant improvement on our 2011 
score. This is an independent assessment of sector 
performance across a range of indicators, from 
governance to climate change. our sector leadership 
in sustainability is a key differentiator in securing 
public and private sector opportunities, borne out  
by our excellent record in acquiring land and  
planning permissions.
We are well equipped 
to deliver sustainable 
communities through 
our key strengths in 
high quality planning 
and design, 
partnerships, and 
consensus building  
at local level.
Chris tinker
Regeneration chairman
Blenheim square, epping
Business Review Governance Financials Welcome 33  DiREc ToRs’ REPoRT & A ccoUnTs 2012
sust AiNABility strA tegy
This year, we embarked on a review of our 
sustainability strategy to ensure that we stay  
ahead of emerging trends over the next five to ten 
years. With a team of 30 employees from different 
levels and disciplines across the business, we 
identified and considered a whole range of factors 
which include:
■ increasing customer expectations for  
high quality design, product and service
■ societal demand for transparency over 
responsible business practices
■ The impact of changing demographics
■ supply chain skills and capacity
■ impacts of climate change and natural 
resource constraints.
We are developing a strategic framework in 
response to these issues, to stretch our thinking 
and help ensure that we have a sustainable 
business model capable of delivering value  
now and into the future. 
As part of this process, we are engaging in 
constructive dialogue with key stakeholders 
including local authorities, development partners 
and suppliers, to invite insight and comment. 
While we continue to develop this strategy  
our priority remains unchanged: to embed 
sustainability further into our business and 
processes to deliver stakeholder value at  
the same time as socio-economic and 
environmental benefits. 
The rest of this section briefly outlines  
performance under the following themes,  
through which we continue to progress our 
sustainability agenda:
■  Keeping the customer as the focus  
of the business
■  Partnering to deliver sustainable  
communities
■  Where good design meets low carbon
■  A responsible and ethical business.
For full details of our performance in these areas, 
please see the crest nicholson sustainability  
Report 2012.
Chris tinker
Regeneration chairman and Board director  
with responsibility for sustainability
mANA giNg sust AiNABility
operA tioNAl 
CArBoN 
footpriNt 
further 
reDuCeD from  
5.5 teq to 4.9 teq 
per persoN
tArgetiNg A  
25% reDuC tioN 
By 2020  
(baseline: 2007)
* 
Tonnes equivalent carbon
4.9 
teq*
Operating Board Drives sustainability strategy and reviews performance.
Sustainability Business 
Improvement Workgroup (BIW)
chaired by the operating Board Member responsible for sustainability. 
comprising two Board Members plus senior managers. Provides 
Group level thought leadership, strategy and policy development,  
and implementation support to the other BiWs: Production,  
customer, Experience, Development.
Sustainability Team Develops strategy, leads and facilitates implementation.
Projects –  
Operational personnel
sustainability goals are delivered as part of the development 
process and embedded in everyday operations, with partners,  
on site and in offices.
Business Review Governance Financials Welcome A VisioN  
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elements, epsom 36  DiREc ToRs’ REPoRT & A ccoUnTs 2012
KeepiNg the Customer A t the heArt of the BusiNess 
We have an unwavering commitment to excellent 
customer service. This year, to achieve our own 
stretching targets we created a new role of Head  
of customer Experience to oversee the customer 
journey and drive tangible improvements in  
customer satisfaction.
As well as high expectations of design and service, 
customers are increasingly looking for support to 
smooth the buying process. our goal is to ensure that 
every one of our customers is always fully supported 
and delighted with their new home.
To deliver this we must ensure that the customer is  
at the heart of everything we do, from detailed design, 
product selection and build quality to sales and 
marketing – and of course once they have moved in. 
elements, epsom
 
foCus 2012 Key AChieVemeNts
Delivering excellence in customer service 5 star rating in the HBF customer satisfaction survey 
for the third year . 
9 out of 10 of our customers say they would 
recommend us to a friend (2011: 9 out of 10).
introduced a more personalised service by ensuring 
that every customer who reserves a new home 
receives a personal communication from  
a crest nicholson Managing Director .
Understanding our customers’ needs Planned research with occupants of our 
groundbreaking AiMc4 homes in Epsom and at 
centenary Quay, southampton, to obtain qualitative 
feedback from our customers in respect of design, 
layout, comfort and low carbon heating technologies.
continued to use learning from previous customer 
research to inform product and service developments. 
Helping our customers get on the housing ladder Helped over 200 first time buyers to buy their new 
home through EasyBuy (our own shared equity 
scheme) and through government backed schemes 
including FirstBuy and HomeBuy Direct.
We helpeD o Ver 
200 first time 
Buyers to Buy 
their NeW home 
through 
eAsyBuy AND 
through 
go VerNmeNt 
BACKeD sChemes 
iNCluDiNg 
firstBuy AND 
homeBuy DireC t
200
Business Review Governance Financials Welcome 37  DiREc ToRs’ REPoRT & A ccoUnTs 2012
pArtNeriNg to DeliVer sust AiNABle CommuNities
Delivering successful sustainable communities requires a commitment to working in partnership  
over the lifecycle of the development, from initial masterplanning to delivery and beyond. 
We engage continuously with our key partners in development including local authorities, residents  
and interest groups, with whom we work closely to develop proposals and build good relationships  
at every stage of the process. 
We have built a true partnering culture with our suppliers, and developed interactive learning circles  
to ensure that benefits are generated for our business, our suppliers and ultimately our customers. 
foCus 2012 Key AChieVemeNts
Partnering to bring developments  
forward responsibly
Delivered 1,882 new homes and worked with  
local authorities to secure a number of key  
planning permissions.
Bid successfully for Get Britain Building one 
funding, to kickstart seven developments,  
six of which started in the year .
Contributing to public policy  
on the future of housing
Members of the operating Board and management 
teams have been actively working with government 
departments to help shape future policy. 
supported the Town and country Planning 
Association’s work on Garden city principles  
as the basis of creating high quality sustainable 
communities. 
Developing innovative approaches  
with the supply chain
continued to develop a ground breaking framework 
partnership for delivering low carbon distributed 
heating with a major utility provider .
Grew and deepened our partnering with suppliers  
to achieve cost effective innovation in products and 
delivery processes.
increased our requirements on suppliers  
for resource efficiency and environmental  
risk management.
Promoting sustainable procurement continued to implement our sustainable  
Procurement Policy.
continued our commitment to auditing our timber 
supply as legally sourced and assured (working with 
the WWF Forest and Trade network) and to focus  
on procurement of F sc certified supply.
NeW homes 
DeliVereD
1,882
Business Review Governance Financials Welcome 38  DiREc ToRs’ REPoRT & A ccoUnTs 2012
Where gooD DesigN meets lo W CArBoN
We have continued to invest in customer led innovation to develop cost effective delivery of well designed,  
low carbon homes.
A key priority for our sector is preparing for anticipated changes in regulation to help achieve stretching targets 
in home energy standards, and we have continued to drive innovation in cost effective low carbon homes via the 
AiMc4 consortium. The UK Government has maintained the commitment that all homes sent to planning in 
2016 must be ’zero carbon’, but have yet to confirm the price of carbon and full compliance mechanisms.
foCus 2012 WhAt We AChieVeD
Designing for sustainability Assessed all our new schemes against Building for 
Life (BfL), with 100% achieving a minimum of 14/20, 
equivalent to a silver under the original standard.
Began planning how best to embrace BfL12,  
the new BfL assessment tool.
Delivering low carbon homes 276 (15%) were to code 4 (2011: 58, 4%).
544 (30%) of homes delivered were to code for 
sustainable Homes level 3 (2011: 535, 34%). 
324 (18%) to EcoHomes standards (2011: 429, 27%).
Innovating and learning Delivered five exemplar AiMc4 homes at  
noble Park, Epsom. Using the learning, successfully 
tendered designs on two HcA sites to the new Fabric 
Energy Efficiency standard. 
A range of fully tested cost effective technical 
innovations are now being deployed across our  
low carbon housing designs.
Clarifying ‘zero carbon’ regulation continued to contribute to the Zero carbon  
Hub workgroups to find solutions to ‘zero carbon’ 
challenges. As part of contributing to the new 
building regulations, shared our knowledge from  
the AiMc4 project and the Building Performance 
Evaluation/Post-occupancy Evaluation studies  
with the Government.
8 of our  
sites hAVe 
AChieVeD the 
golD st ANDArD* 
uNDer BuilDiNg 
for life, the 
leADiNg 
BeNChmArK of 
sust AiNABle 
DesigN
golD
*
BfL criteria subsequently 
revised in 2012 as BfL12.
elements, epsom
Business Review Governance Financials Welcome 39  DiREc ToRs’ REPoRT & A ccoUnTs 2012
A respoNsiBle AND ethiCAl BusiNess
We are proud of the talent, commitment and energy of our employees, and in turn we ensure 
transparency, openness and investment in skills, with a commitment to engaging our people  
in the vision and direction of the Group.
We continued to invest in skills development for our sales, customer service and management teams,  
grew the number of apprentices working with us, and maintained our graduate trainee intake. 
Health and safety remains paramount and once again we recorded an Annual injury incidence Rate  
of below our HBF peer group and the construction sector average. 
As part of reducing our operational impacts, we continue to report annually on our carbon footprint, 
and set long and medium term targets to reduce our carbon emissions, partnering with our suppliers  
to eliminate waste.
foCus 2012 WhAt We AChieVeD
Engaging with our employees new company wide bonus scheme.
Regular communication of business strategy  
and achievements.
Developing expertise 12.8 hours of training per employee (2011: 8.5).
number of apprentices increased from 44 to 45,  
a further six being recruited.
six graduate trainees (2011: 5).
Driving health and safety for all
Managing environmental risk
48% reduction in annual injury incidence rate  
since 2008.
committed to HBF Health and safety charter .
Zero prosecutions and fines (2011: 0)  
and 172 days of training (2011: 200).
Reinforced the Group health and safety team with 
three further members and integrated environmental  
site management into the roles.
Refreshed best practice standards for environmental 
site management. 
Measuring and continuously improving  
operational impacts
Reduced our office energy use by a further 2.5% 
(2011: 7.5%).
Reduced our operational carbon footprint from  
5.5 teq to 4.9 teq per person. We report our carbon 
footprint annually according to The Greenhouse  
Gas Protocol and our data is externally assured. 
Targeting a 25% reduction by 2020 over 2007 levels. 
Conserving resources Further reduced waste sent to landfill 2012: 6% 
(2011: 11%).
Partnered with our groundworkers to maximise 
re-use of spoil – targeting zero spoil to be taken  
offsite where possible. 
set up Waste Reduction Panel with suppliers, 
independently chaired by the national industrial 
symbiosis Programme (nisP).
supportiNg the 
‘hope BuilDer’ 
CAmpAigN pArt  
of hABit At for 
humANity ChArity
iN 2013, We Will  
Be fuNDrAisiNg  
to help fiNANCe 
the CoNstruC tioN 
of 50 NeW homes 
for people iN 
eXtreme NeeD  
iN DeVelopiNg 
CouNtries
50
Business Review Governance Financials Welcome A VisioN 
thA t iNspires  
pArtNership
AimC4 at Noble park, epsom 43  DiREc ToRs’ REPoRT & A ccoUnTs 2012 42  DiREc ToRs’ REPoRT & A ccoUnTs 2012
respoNsiBilities of the Bo ArD
The crest nicholson Group operates through  
its Holdings Board with day-to-day executive 
management delegated to the operating Board.
The Holdings Board is responsible for setting and monitoring Group strategy, 
reviewing performance, protecting the business from reputational damage, 
ensuring adequate funding, formulating policy on key issues and reporting  
to its shareholders. The Board has oversight of the operating Board, which  
has responsibility for the day-to-day operation of the business and developing 
strategy for the Holdings Board’s input and approval. 
The Board has three non-Executive Directors and two Executive Directors.
“The Board” refers to the main board of the company, also known as the Holdings Board.
BoArD
 
of DireC tors
01 02 03 04 05 06 07 08 09
01 Kevin maguire
 company secretary
02 steve evans
 Group Production Director
03 robin hoyles
 Group Land and Planning Director
04 William rucker
 non-Executive chairman 
05 stephen stone
 chief Executive
06 pam Alexander, oBe
 non-Executive Director
07 Chris tinker
 Regeneration chairman
08 malcolm mcCaig
 non-Executive Director
09 patrick Bergin
 Group Finance Director
yeArs of 
eXperieNCe  
iN uK 
houseBuilDiNg
1 00+
Governance
Governance Welcome Financials Business Review 44  DiREc ToRs’ REPoRT & A ccoUnTs 2012
operA tiNg 
BoArD
holDiNgs 
BoArD
William rucker
non-Executive chairman
malcolm mcCaig
non-Executive Director
pam Alexander, oBe
non-Executive Director
stephen stone
chief Executive
patrick Bergin
Group Finance Director
stephen stone
chairman
patrick Bergin
Group Finance Director
Chris tinker
Regeneration chairman
steve evans
Group Production Director
robin hoyles
Group Land and Planning Director
Kevin maguire
company secretary
A
 
Audit committee
N
 
nomination committee
r
 
Remuneration committee
stephen stone  N
 
r
chief Executive
stephen stone joined the Group in 1995.  
He was appointed to the Board in 1999, 
becoming chief Executive on 1
st 
november 
2005. stephen is the Board member 
responsible for health and safety. He is  
a chartered Architect with over 30 years’ 
experience in the construction and house 
building industry and in 2011 he joined the 
Home Builders Federation (HBF) Board as  
a non-Executive Director .
William rucker A
 
N
 
r
non-Executive chairman 
William Rucker was appointed as chairman 
in september 2011. He is a chartered 
accountant and cEo of Lazard in the UK, 
chairman of Quintain Estates & 
Development PLc and non-Executive 
Director of Rentokil-initial PL c.
malcolm mcCaig A
 
N
 
r
non-Executive Director
Malcolm Mccaig joined the Board in April 2009. 
He is chairman of Kent Reliance Provident 
society and chairman of caley Limited. He 
also holds a number of other independent 
non-executive director roles, including 
London capital Group, Unum, Renaissance 
capital and Jubilee. He is a former partner 
with Deloitte, as well as Ernst & Young and 
is a technical specialist in risk management, 
finance, corporate governance, regulatory 
compliance, iT, strategic business 
development and change management. 
Governance Welcome Financials Business Review 45  DiREc ToRs’ REPoRT & A ccoUnTs 2012
pam Alexander, oBe A
non-Executive Director
Pam Alexander, the former chief Executive 
of the south East England Development 
Agency (sEEDA), joined the Board of  
crest nicholson on 5
th
 December 2011. 
Pam has more than 35 years of experience 
in the public, private and not-for-profit 
sectors, having worked closely with boards 
and government ministers on strategic 
policy and direction across numerous 
areas including regeneration and housing, 
innovation, growth and economic 
development. Pam is also a non-Executive 
Director of the Design council cABE, the 
Academy of Urbanism and a trustee of  
the Brighton Dome and Festival Ltd.
patrick Bergin 
 
Group Finance Director
Patrick Bergin joined the Group in 2006.  
He was appointed as Group Finance 
Director in 2011. He is a chartered 
Accountant with 18 years’ experience and 
has worked in a range of industries and 
companies including Touche Ross (now 
Deloitte), Reed Elsevier and The Boc 
Group, in various finance roles.
Chris tinker
Regeneration chairman
chris Tinker, a chartered Builder, joined 
crest Estates in 1988. Throughout the 
1990s he was instrumental in the 
acquisition and master planning of several 
of the Group’s major residential projects, 
leading to his appointment in 2002 as 
Managing Director of crest nicholson 
Developments. chris joined the executive 
management team in 2007 and is now 
Regeneration chairman and is also 
responsible for sustainability strategy.  
He is also a Director of the Enterprise M3 
LEP and advisor to the HcA’s Design and 
sustainability panel.
steve evans
Group Production Director
steve Evans was appointed to the executive 
management team in January 2011. He 
had previously served with the Group from 
1995 for nine years. He is currently Group 
Production Director and was previously 
Managing Director of the Eastern Region. 
Prior to rejoining the Group in 2009 he was 
chief Executive of the Anderson Group.
robin hoyles
Group Land and Planning Director
Robin Hoyles joined the Group in May  
2011 and was appointed to the executive 
management team in December 2011.  
He was previously with countryside 
Properties for more than 17 years as 
Managing Director of their special Projects 
division. He is a solicitor and prior to  
joining countryside was in private  
practice in London.
Kevin maguire
company secretary
Kevin Maguire joined the Group in  
March 2008 and became company 
secretary in January 2009. Having a legal 
background, he is a chartered secretary 
and previously held roles in retail, 
pensions and technology.
Governance Welcome Financials Business Review 46  DiREc ToRs’ REPoRT & A ccoUnTs 2012
DireC tors’ 
report
priNCip Al AC tiVity  
AND BusiNess reVieW
During the year to 31
st 
october 2012, the principal 
activity of the Group was the design and delivery of 
sustainable housing and mixed-use communities.  
The chairman’s statement, the chief Executive’s 
review and the Financial Review discuss the 
performance and position of the Group along with  
a more detailed commentary on the future outlook  
of the company. The company is incorporated  
in England and Wales.
resul ts AND DiViDeND
The Group’s consolidated profit after taxation for the 
financial year ending 31
st 
october 2012 was £63.9m 
(2011: profit £40.5m).
no dividends were declared or paid in the financial 
year and the Directors do not propose a dividend.
shAre CApit Al
The company has 10,000,000 ordinary shares,  
65,000 A shares, 5,750 B shares, 6,957 c shares, 
28,125 D shares and 18,000 deferred shares in issue 
at 31
st
 october 2012. Movements in the share capital 
of the company are shown in note 18 to the 
consolidated financial statements.
ArtiCles of AssoCiA tioN
The Articles of Association regulate the internal  
affairs of the company and cover such matters as 
Board and shareholder meetings, powers and duties 
of Directors, borrowing powers and the issue and 
transfer of shares.
The Articles may only be amended by special 
resolution of the shareholders. 
DireC tors
The Directors during the year were:
Non-executive Chairman
Mr WJ Rucker 
Non-executive Directors
Mr MG Mccaig
Ms PE Alexander oBE (Appointed 5
th
 December 2011)
executive Directors
Mr s stone
Mr P J Bergin 
Biographies of the Directors are detailed on pages 
44-45. There were no contracts of significance during 
the financial year in which a Director of the company 
is, or was, materially interested.
DireC tors iNDemNities
it is the company’s practice to indemnify its Directors 
and officers to the extent permitted by law and the 
Articles against all costs, charges, losses, expenses 
and liabilities incurred in connection with any 
negligence, default, breach of duty or trust and any 
other liability incurred in the execution of their duties.
in addition the company maintains Directors’ and 
officers’ liability insurance for the Directors and 
company secretary. 
DoNAtioNs
During the year the Group made donations  
to charities of £3,000 (2011: £2,000).
Employees have continued to support the Group’s 
nominated charity, Variety, the children’s charity and 
have raised £67,000 (2011: £57,000) to support this 
cause during the year .
There were no political donations made.
The Directors present their annual report with the consolidated 
accounts of the company for the year ended 31
st 
october 2012.
Governance Welcome Financials Business Review 47  DiREc ToRs’ REPoRT & A ccoUnTs 2012
employmeNt poliC y
The Group maintains and operates an Equal 
opportunities Policy. The Group seeks to ensure at all 
times that all employees and prospective employees 
and individuals receive equal and proper treatment 
regardless of sex, marital status, sexual orientation, 
religious belief, colour, race, nationality, ethnic origin, 
age or disability. The Group values diversity and 
equality, and selects employees based on their 
aptitude and abilities. 
sust AiNABility
The Group publishes a sustainability Report, which it 
submits to external benchmarking. A summary of the 
Group’s sustainability Report can be found earlier in 
this Annual Report and Accounts and on the Group’s 
website. sustainability is at the core of the Group’s 
strategy and product, and the Group embeds 
sustainability in all its activities and operations.
heAl th AND sAfety
The Group believes and acknowledges that health and 
safety is a critical part of managing our business and 
staff. Policy management, inspection and training are 
carried out by the Group’s health and safety team 
under stephen stone, who is the Director responsible 
for health and safety. The Group’s health and safety 
team work with Divisions and the Group to encourage 
and develop high quality practice and education to 
ensure that everyone on our sites remains as accident 
and incident free as possible. The Group embraces 
appropriate health and safety policies and practices 
throughout its operations.
esseNtiAl CoNtrAC ts
The Group does not have any contracts that are 
considered alone to be essential to the business of the 
Group. The Group does on occasion make significant 
purchases of goods and services in a particular 
discipline from a sole supplier where this is necessary 
for efficiency, practicality or value. However, it does so 
only after a detailed tender or appropriate selection 
process and in the context of the level of risk such  
sole supply might bring. 
DisClosure of iNformA tioN  
to AuDitor
The Directors who held office at the date of approval 
of this Directors’ Report confirm that, so far as they 
are each aware, there is no relevant audit information 
of which the company’s auditor is unaware; and each 
Director has taken all the steps that he ought to have 
taken as a Director to make himself aware of any 
relevant audit information and to establish that the 
company’s auditor is aware of that information.
AuDitor
Pursuant to section 487 of the companies Act 2006, 
the auditor will be deemed to be reappointed and 
KPMG Audit Plc will therefore continue in office.
By order of the Board
Kevin maguire
company secretary
Crest house
Pyrcroft Road
chertsey
surrey
KT16 9Gn
Registered no: 6800600
16
th
 January 2013
papermill Walk, ingress park
Governance Welcome Financials Business Review 48  DiREc ToRs’ REPoRT & A ccoUnTs 2012
CorporA te 
go VerNANCe
ChAirmAN’s iNtroDuC tioN
Good corporate governance is at the heart of 
successful business. The Board is committed to high 
standards of corporate governance. it has established 
and operates a practical risk based framework based 
on core values and standards. 
As a private limited company, crest nicholson 
Holdings Limited is not bound by the UK corporate 
Governance code but the Board believes that by 
seeking to comply with best practice it has contributed 
towards shareholder wealth and the future success  
of the company. 
The Board is ultimately responsible for the activities, 
successes and any failings of the Group’s operation. 
However, it delegates day-to-day operational 
responsibility to the operating Board, a properly 
constituted and skilled team of senior management.
Reflecting the Holdings company governance 
structure, the Board of the company focuses on the 
overall oversight of the Group and its strategic and 
corporate direction. The Board has overall 
responsibility for the conduct of the Group’s business, 
ensuring that the obligations to its shareholders  
and other stakeholders are understood and met.  
Each Board Director is aware of his/her 
responsibilities, individually and collectively,  
to promote the long term success of the  
company and as such the Group.
William Rucker
chairman
BoArD of DireC tors
struC ture of the Bo ArD
The composition of the Board is designed to  
ensure effective management and control of the 
Group. The Board has an appropriate balance of 
non-Executive and Executive Directors consisting  
of a non-Executive chairman and two non-Executive 
Directors together with the chief Executive and  
Group Finance Director . 
The Board’s non-Executive Directors demonstrate  
a range of experience and professional backgrounds 
that enables them to make a valuable contribution to 
the Group and to provide independent judgement and 
challenge to the Board. They present a balance of 
financial, corporate and risk skills together with 
design, property and commercial knowledge that 
supplements and complements the Executive 
Directors’ and operating Board’s combined  
industry experience. 
Biographies of the members of the Board and  
the operating Board are set out on pages 44-45. 
BoArD effeC tiVeNess
The Board regularly reviews the Group’s strategy  
and engages with its stakeholders and shareholders 
as part of this process.
The Board recognises that its material asset is its 
land bank. Whilst the Board delegates an appropriate 
authority to the operating Board to undertake 
acquisitions of the majority of new sites as it deems 
necessary, the Board retains oversight of all 
acquisitions through regular reporting and  
approval of all material acquisitions. 
Good corporate 
governance is at 
the heart of 
successful 
business.
Governance Welcome Financials Business Review 49  DiREc ToRs’ REPoRT & A ccoUnTs 2012
The Board receives regular management reports. 
Additional briefing material is provided to the Board 
as required by operational events. The ability for the 
Board to respond dynamically to requirements is a  
key part of its operational efficiency and success.
Within the Board, there is a clear division between  
the role of the chairman and chief Executive. The 
chairman is primarily responsible for overseeing  
the working of the Board. He leads the Board in the 
determination of strategy, overseeing the conduct  
of Board meetings to ensure appropriate involvement 
from each Director in order to contribute to an 
effective decision making process. 
The Directors have access to the company  
secretary for any corporate or Group matters 
including legal and regulatory information, and 
ensuring good information flows within the Board  
and its committees and between the executive team 
and non-Executive Directors. 
Directors may, at the company’s expense,  
take independent professional advice and receive 
additional training. All new Directors participate  
in a customised induction training programme and 
receive the necessary policies and preparation 
required to carry out their duties, spending 
appropriate time with the operating Board  
and any other members of management that  
are appropriate.
The Board reviews its own performance and evaluates 
its effectiveness in providing strategic direction to the 
Group and maintaining appropriate relationships with 
shareholders and other stakeholders.
The Board held six meetings during the year,  
with the following attendance by Directors:
meetings
n ov
2011
Jan
2012
Apr
2012
Jun
2012
Jul
2012
sept 
2012
Attendance 4/4 5/5 5/5 5/5 5/5 5/5
Further, all members of the Board and operating 
Board attended a strategy meeting in February 2012.
hunts grove, gloucester
Governance Welcome Financials Business Review 50  DiREc ToRs’ REPoRT & A ccoUnTs 2012
Committees of the Bo ArD
The Board devolves certain other areas of 
responsibility to Board committees. The terms  
of reference of the committees cover such issues  
as membership, the frequency of meetings, 
requirements of any quorum for and the right  
to attend meetings, and duties and reporting 
responsibilities of the respective committee.  
The terms of reference also set out the authority 
of that committee to carry out its duties.
Audit Committee
The Audit committee comprises:
Malcolm Mccaig (chairman)
William Rucker
Pam Alexander 
The Audit committee’s role is to assist the  
Board with the discharge of its responsibilities  
in relation to internal and external audits and  
controls, including reviewing the Group’s financial 
statements, monitoring their integrity, and any  
formal announcements relating to the Group’s 
financial performance. 
The committee reviews the scope of the annual audit 
and the extent of the non-audit work undertaken by 
external auditors, advises on the appointment and 
remuneration of external auditors and reviews the 
auditors’ independence and the effectiveness of the 
audit process.
The Auditors’ independence is ensured through a 
variety of procedures including regular rotation of 
audit partners. The Group’s Policy on non-audit fees 
provides that fees in excess of a multiple of one times 
the audit fee must be approved by the Audit 
committee. in the ordinary course of business it may 
be appropriate to make use of the Auditors for other 
services, for example for financial and tax advice.
The committee is also responsible for reviewing the 
effectiveness of the internal control systems in place 
within the Group. it receives regular and detailed 
reports from the Business Assurance function that 
present its findings, suggestions and the progress 
that has been made.
The Audit committee meets at least three times a 
year with the Auditors and is attended by the chief 
Executive, Group Finance Director and other senior 
personnel as appropriate (by invitation). The company 
secretary also attends each meeting. The Audit 
committee met three times during the year,  
with full attendance at all meetings.
Kaleidoscope, Cambridge
Governance Welcome Financials Business Review 51  DiREc ToRs’ REPoRT & A ccoUnTs 2012
Nomination Committee
The Group nomination committee comprises:
Malcolm Mccaig (chairman)
William Rucker
stephen stone
The nomination committee meets when necessary  
to consider and review any vacancies at Board and 
senior management level. The nomination 
committee will review the skills, knowledge and 
experience of potential candidates and make 
recommendations to the Board and the Remuneration 
committee, who will consider the remuneration 
structure where applicable.
The nomination committee meets when necessary 
and other senior personnel are invited to attend as 
appropriate. no member or attendee is present for 
significant discussions about their own role or 
matters that directly affect them.
remuneration Committee
The Group Remuneration committee comprises:
Malcolm Mccaig (chairman)
William Rucker
stephen stone
The Remuneration committee is responsible for 
reviewing and approving proposals in relation to 
annual salary increases, bonuses and performance 
related incentive programmes. 
The Remuneration committee determines  
the levels of remuneration for the chairman,  
chief Executive and Executive Directors and 
recommends and monitors the remuneration  
of members of senior management.
Remuneration packages will be aligned so they 
properly reflect performance and promote and  
protect shareholder interests.
The Group’s remuneration strategy recognises the 
importance of attracting, retaining and motivating 
executives of the appropriate calibre and experience 
to enhance the performance and reputation of the 
Group. The size and complexity, as well as the long 
term nature of the business, are all important factors. 
The policy is to provide competitive potential levels of 
compensation, benefits and incentive opportunities 
within appropriate local markets.
The Remuneration committee meets at least once a 
year . no member or attendee is present for significant 
discussions about their own role, remuneration or 
matters that directly affect them.
Governance Welcome Financials Business Review 52  DiREc ToRs’ REPoRT & A ccoUnTs 2012
risK & iNterNAl CoNtrol 
The Board is responsible for the Group’s system  
of internal control and for reviewing its effectiveness 
ensuring there are appropriate systems and controls 
in place to safeguard the company’s resources. 
internal control procedures are designed to manage, 
rather than eliminate, the risk of not achieving 
business objectives and can only provide reasonable 
and not absolute assurance against material 
misstatement or loss.
The Board considers that there is a continuous 
process for identifying, evaluating and managing 
significant risks faced by the Group in the course  
of its business, which has been in place throughout 
the year and up to the date of approval of the  
Annual Report and Accounts. This process is  
regularly reviewed by the Audit committee,  
operating Board and the Board and is consistent  
with the internal control guidance for Directors  
in the UK corporate Governance code.
org ANisAtioNAl struC ture  
& Deleg AtioN
A key part of the system of internal control is the 
delegation of management responsibility for the 
Group’s land and property investment, development 
and operating activities, together with supporting 
functions, to Divisional management teams as 
appropriate. The Group’s Regional Divisions have 
divisional management boards, which oversee their 
operations with direct input and oversight from the 
operating Board. These management boards form  
an integral part of the overall internal control process. 
Each Regional Division and the company have 
management structures in place to enable  
effective decision making, with clear authority  
levels, supported by documented procedures  
and a regular review of financial performance, 
including comparisons against budget and forecasts. 
Management report monthly to the operating Board.
ixia, london
Governance Welcome Financials Business Review 53  DiREc ToRs’ REPoRT & A ccoUnTs 2012
risK mANA gemeNt
The aim of risk management is to identify and 
document all inherent risks, which could affect  
the achievement of the Group’s objectives. 
Risk management is a regular agenda item  
for all parts of the business with the emphasis on 
continuous improvement. in the Regional Divisions, 
each divisional management board undertakes  
a regular assessment of its exposure to financial, 
operational and strategic risks and the measures  
that have been put in place to manage those risks. 
Risks are first documented in a divisional risk register 
and subsequently incorporated into the Group risk 
matrix. Each risk is classified and prioritised for 
further attention using the approved risk acceptance 
thresholds and categories. 
significant risks arising from Divisional assessments 
are monitored by the Group operating Board,  
the Audit committee and the Board. 
BusiNess AssurANCe
The Group has a Business Assurance function  
to review internal control and risk management 
throughout the Group. The objective is to provide 
management with independent assurance that risks 
have been adequately identified, internal controls have 
been suitably designed to match business risks and 
that they are operating as intended. These activities 
are overseen by the Audit committee, which approves 
the internal audit programme, considers the reports 
and monitors the implementation of any 
recommendations made.
poliCies AND proCeDures
Policies and procedures, including operating  
and financial controls, are detailed in policies and 
procedures manuals. in particular the Group Authority 
Manual sets out the general principles of authority 
delegation within the Group, including authority limits. 
Where appropriate the procedures are integrated into 
the operating systems of the Group to ensure their  
full effectiveness. 
There are strict approval processes in place in relation 
to the acquisition of land and the commencement of 
development projects. Regardless of whether a site 
ultimately requires approval of the Board, all sites go 
through a rigorous approval and assessment process. 
Governance Welcome Financials Business Review 54  DiREc ToRs’ REPoRT & A ccoUnTs 2012
The Group operates a range of compliance, ethical  
and equal treatment policies. The Group also operates 
a whistleblowing policy where Directors, management 
and staff can report in confidence any concerns  
they may have of malpractice, financial irregularity, 
breaches of any Group procedures, or other matters. 
The policy details the appropriate lines of 
communication and includes the availability  
of the Audit committee chairman as a point of 
contact. The arrangements in place are reviewed  
by the Audit committee.
in accordance with recent legislation the Group  
has implemented a number of policies and 
procedures to prevent bribery and corruption, 
including an Anti-Bribery and corruption Policy,  
a Gifts and Entertainment Policy and guidance  
around bribery risk areas. The Group also undertakes 
appropriate training and other processes in relation  
to these policies.
CeNtrAl fuNC tioNs
strong central functions, including Legal  
and company secretarial, Human Resources,  
Health and safety, iT and Marketing provide support 
and consistency to the rest of the Group. Each central 
function contributes in its area to ensure compliance, 
oversight, support and education with the relevant 
legal and regulatory requirements. in addition, the 
principal treasury related risks, decisions and  
control processes are managed by the Group  
Finance function.
relA tioNships With 
shAreholDers AND leNDers
The Group enjoys a good working relationship  
with its lenders and shareholders. The Annual Report 
and Accounts and non-financial reporting are widely 
distributed through a variety of delivery channels  
and the Group’s policy is to maintain appropriate 
contact during each financial year with shareholders 
and stakeholders.
Noble park, epsom
Governance Welcome Financials Business Review 55  DiREc ToRs’ REPoRT & A ccoUnTs 2012
The Directors are responsible for preparing the 
Directors’ Report and the Group and parent company 
financial statements in accordance with applicable 
law and regulations.
company law requires the Directors to prepare Group 
and parent company financial statements for each 
financial year . Under that law they have elected to 
prepare the Group financial statements in accordance 
with international Financial Reporting standards 
(iFRss) as adopted by the EU and applicable law and 
have elected to prepare the parent company financial 
statements in accordance with UK Accounting 
standards and applicable law (UK Generally  
Accepted Accounting Practice).
Under company law the Directors must not approve 
the financial statements unless they are satisfied that 
they give a true and fair view of the state of affairs of 
the Group and parent company and of their profit or 
loss for that period. 
in preparing each of the Group and parent company 
financial statements, the Directors are required to:
■ 	 select suitable accounting policies  
and then apply them consistently;
■ 	 make judgements and estimates that are 
reasonable and prudent;
■ 	 for the Group financial statements, state whether 
they have been prepared in accordance with iFRss 
as adopted by the EU;
■ 	 for the parent company financial statements, 
state whether applicable UK Accounting 
standards have been followed, subject to any 
material departures disclosed and explained  
in the financial statements; and
■ 	 prepare the financial statements on the going 
concern basis unless it is inappropriate to 
presume that the Group and the parent  
company will continue in business.
The Directors are responsible for keeping adequate 
accounting records that are sufficient to show and 
explain the parent company’s transactions and 
disclose with reasonable accuracy at any time the 
financial position of the parent company and enable 
them to ensure that its financial statements comply 
with the companies Act 2006. They have general 
responsibility for taking such steps as are reasonably 
open to them to safeguard the assets of the Group and 
to prevent and detect fraud and other irregularities.
The Directors are responsible for the maintenance  
and integrity of the corporate and financial information 
included on the company’s website. Legislation in the 
UK governing the preparation and dissemination of 
financial statements may differ from legislation in 
other jurisdictions. 
st AtemeNt of DireC tors’ 
respoNsiBilities iN respeC t  
of the DireC tors’ report  
AND fiNANCiAl st AtemeNts
Governance Welcome Financials Business Review Financials
oakwood gardens, oxhey
Financials Welcome Business Review Governance 57  DiREc ToRs’ REPoRT & A ccoUnTs 2012
We have audited the financial statements of  
crest nicholson Holdings Limited for the year  
ended 31st october 2012 set out on pages 58 to 89.  
The financial reporting framework that has been 
applied in the preparation of the Group financial 
statements is applicable law and international 
Financial Reporting standards (iFRss) as adopted  
by the EU. The financial reporting framework that has 
been applied in the preparation of the parent company 
financial statements is applicable law and UK 
Accounting standards (UK Generally Accepted 
Accounting Practice).
This report is made solely to the company’s 
members, as a body, in accordance with chapter 3  
of Part 16 of the companies Act 2006. our audit work 
has been undertaken so that we might state to the 
company’s members those matters we are required 
to state to them in an Auditor’s report and for no other 
purpose. To the fullest extent permitted by law, we do 
not accept or assume responsibility to anyone other 
than the company and the company’s members, as  
a body, for our audit work, for this report, or for the 
opinions we have formed.
respeC tiVe respoNsiBilities  
of DireC tors AND AuDitors
As explained more fully in the Directors’ 
Responsibilities statement set out on page 55, the 
Directors are responsible for the preparation of the 
financial statements and for being satisfied that they 
give a true and fair view. our responsibility is to audit, 
and express an opinion on, the financial statements  
in accordance with applicable law and international 
standards on Auditing (UK and ireland). Those standards 
require us to comply with the Auditing Practices 
Board’s (APB’s) Ethical standards for Auditors.
sCope of the AuDit of  
the fiNANCiAl st AtemeNts
A description of the scope of an audit of financial 
statements is provided on the APB’s website at  
www.frc.org.uk/apb/scope/private.cfm.
opiNioN oN fiNANCiAl st AtemeNts
in our opinion:
■ the financial statements give a true and fair view 
of the state of the Group’s and of the parent 
company’s affairs as at 31
st
 october 2012 and  
of the Group’s profit for the year then ended;
■ the Group financial statements have been properly 
prepared in accordance with iFRss as adopted by 
the EU;
■ the parent company financial statements have 
been properly prepared in accordance with UK 
Generally Accepted Accounting Practice;
■ the financial statements have been prepared  
in accordance with the requirements of the 
companies Act 2006.
opiNioN oN other mA tter 
presCriBeD By the Comp ANies  
ACt 2006
in our opinion the information given in the Directors’ 
Report for the financial year for which the financial 
statements are prepared is consistent with the 
financial statements. 
mA tters oN WhiCh We Are reQuireD 
to report By eXCeptioN
We have nothing to report in respect of the following 
matters where the companies Act 2006 requires us  
to report to you if, in our opinion:
■ adequate accounting records have not been kept 
by the parent company, or returns adequate for 
our audit have not been received from branches 
not visited by us; or
■ the parent company financial statements are  
not in agreement with the accounting records  
and returns; or
■ certain disclosures of Directors’ remuneration 
specified by law are not made; or
■ we have not received all the information and 
explanations we require for our audit.
W e j holland  
(senior statutory Auditor)
for and on behalf of KPMG Audit Plc, statutory Auditor 
Chartered Accountants
15 canada square
London
E14 5GL
16
th
 January 2013
iNDepeNDeNt  
AuDitor’s report 
to the memBers of Crest NiCholsoN holDiNgs limiteD
Financials Welcome Business Review Governance 58  DiREc ToRs’ REPoRT & A ccoUnTs 2012
Crest NiCholsoN holDiNgs limiteD
CoNsoliDA teD iNCome st AtemeNt
For year ended 31
st
 october 2012
Note
2012
£m
2011
£m
Revenue – continuing activities 2 408.0 319.1
cost of sales (296.2) (227.8)
Gross profit 111.8 91.3
Administrative expenses: (38.7) (35.1)
other operating income 0.2 0.2
Operating profit – continuing activities 3 73.3 56.4
Financial income 5 9.2 8.9
Bank finance costs:
 – nominal bank interest charges (10.4) (19.0)
 – Amortisation of bank debt fair value discount - (63.6)
5 (10.4) (82.6)
other financial expenses 5 (8.2) (8.3)
net financing expense (9.4) (82.0)
share of post tax results of joint ventures using the equity method 10 (1.8) (1.4)
Profit/(loss) before tax 62.1 (27.0)
income tax 6 1.8 67.5
Profit for the year attributable to equity shareholders 63.9 40.5
The notes on pages 63 to 85 form part of these financial statements.
Financials Welcome Business Review Governance 59  DiREc ToRs’ REPoRT & A ccoUnTs 2012
Crest NiCholsoN holDiNgs limiteD
CoNsoliDA teD st AtemeNt  
of CompreheNsiVe iNCome
For year ended 31
st
 october 2012
2012 
£m
2011 
£m
Profit for the year 63.9 40.5
Other comprehensive income:
Actuarial loss on defined benefit pension schemes (1.7) (10.2)
change in deferred tax on actuarial loss (1.8) 8.7
change in fair value of available for sale financial assets (0.3) 2.1
Other comprehensive (expense)/income for the year net of income tax (3.8) 0.6
Total comprehensive income attributable to equity shareholders 60.1 41.1
The notes on pages 63 to 85 form part of these financial statements.
For year ended 31
st
 october 2012
share capital
£m
share premium
£m
retained earnings
£m
Total
£m
Balance at 31
st
 October 2010 - - (99.0) (99.0)
Profit for the year - - 40.5 40.5
Actuarial loss on pension scheme - - (10.2) (10.2)
Deferred tax on actuarial loss - - 8.7 8.7
change in fair value of available  
for sale financial assets
- - 2.1 2.1
Financial restructuring 10.0 240.3 94.6 344.9
Balance at 31
st 
October 2011 10.0 240.3 36.7 287.0
Profit for the year - - 63.9 63.9
Actuarial loss on pension scheme - - (1.7) (1.7)
Deferred tax on actuarial loss - - (1.8) (1.8)
change in fair value of available  
for sale financial assets
- - (0.3) (0.3)
Balance at 31
st 
October 2012 10.0 240.3 96.8 347.1
The notes on pages 63 to 85 form part of these financial statements.
Crest NiCholsoN holDiNgs limiteD 
CoNsoliDA teD st AtemeNt  
of ChANges iN eQuity
Financials Welcome Business Review Governance 60  DiREc ToRs’ REPoRT & A ccoUnTs 2012
Crest NiCholsoN holDiNgs limiteD
CoNsoliDA teD st AtemeNt  
of fiNANCiAl positioN 
 
As at 31
st
 october 2012
Note
2012
£m
2011 
£m ASSETS
Non-current assets
intangible assets 8 29.0 29.0
Property, plant and equipment 9 2.2 2.9
investments 10 2.9 2.3
Available for sale financial assets 11 31.1 26.8
Deferred tax assets 16 74.9 75.2
140.1 136.2
Current assets
inventories 12 469.4 394.2
Trade and other receivables 13 41.5 46.7
cash and cash equivalents 150.1 121.9
661.0 562.8
Total assets 801.1 699.0
LIABILITIES
Non-current liabilities
interest bearing loans and borrowings 14 (176.1) (162.7)
Trade and other payables 15 (34.8) (24.7)
Retirement benefit obligations 20 (29.9) (34.5)
Provisions 17 (7.1) (11.1)
 (247.9) (233.0)
Current liabilities
interest bearing loans and borrowings 14 (4.3) (2.0)
Trade and other payables 15 (194.9) (170.3)
Provisions 17 (6.9) (6.7)
(206.1) (179.0)
Total liabilities (454.0) (412.0)
Net assets 347.1 287.0
Financials Welcome Business Review Governance 61  DiREc ToRs’ REPoRT & A ccoUnTs 2012
As at 31
st
 october 2012
Note
2012
£m
2011 
£m
SHAREHOLDERS’ EQUITY
share capital 18 10.0 10.0
share premium account 18 240.3 240.3
Retained earnings 96.8 36.7
347.1 287.0
The notes on pages 63 to 85 form part of these financial statements.
These financial statements were approved by the Board of Directors on 16
th
 January 2013 and were signed on its behalf by:
s stone
p j Bergin
Directors
Registered no: 6800600
Financials Welcome Business Review Governance 62  DiREc ToRs’ REPoRT & A ccoUnTs 2012
Crest NiCholsoN holDiNgs limiteD
CoNsoliDA teD CAsh flo W st AtemeNt
For year ended 31
st
 october 2012
2012
£m
2011
£m
Cash flows from operating activities
Profit for the year 63.9 40.5
Adjustments for:
Depreciation charge 1.2 1.2
net finance charges 9.4 82.6
share of loss of joint ventures 1.8 1.4
Taxation (1.8) (67.5)
Operating profit before changes in working capital and provisions 74.5 58.2
Decrease/(increase) in trade and other receivables 5.2 (7.1)
increase in inventories (75.2) (32.3)
increase/(decrease) in trade and other payables 24.3 (9.9)
Cash generated from operations 28.8 8.9
interest paid (11.8) (9.8)
Tax received 0.6 -
Net cash inflow/(outflow) from operating activities 17.6 (0.9)
Cash flows from investing activities
Purchases of property, plant and equipment (0.5) (0.1)
increase in available for sale financial assets (4.6) (3.8)
Net cash outflow from investing activities (5.1) (3.9)
Cash flows from financing activities
net proceeds from the issue of share capital - 0.3
Debt arrangement and facility fees - (3.4)
Repayment of other borrowings (0.6) -
Proceeds from new loan 16.3 -
Net cash inflow/(outflow) from financing activities 15.7 (3.1)
Net increase/(decrease) in cash and cash equivalents 28.2 (7.9)
cash and cash equivalents at the beginning of the year 121.9 129.8
Cash and cash equivalents at end of the year 150.1 121.9
The notes on pages 63 to 85 form part of these financial statements.
Financials Welcome Business Review Governance 63  DiREc ToRs’ REPoRT & A ccoUnTs 2012
Notes to the CoNsoliDA teD 
fiNANCiAl st AtemeNts
1. ACCouNtiNg poliCies
crest nicholson Holdings Limited (the “company”)  
is a company incorporated in the UK.
The Group financial statements consolidate those of 
the company and its subsidiaries (together referred  
to as the “Group”) and include the Group’s interest in 
jointly controlled entities. The parent company 
financial statements present information about the 
company as a separate entity and not about its Group.
The Group financial statements have been prepared 
and approved by the Directors in accordance with 
international Financial Reporting standards as 
adopted by the EU (“EU iFRss”). The company has 
elected to prepare its parent company financial 
statements in accordance with UK GAAP; these  
are presented on pages 86 to 89.
The accounting policies set out below have,  
unless otherwise stated, been applied consistently  
to all periods presented in these Group financial 
statements.
Judgements made by the Directors, in the application 
of these accounting policies that have significant 
effect on the financial statements and estimates with 
a significant risk of material adjustment in the next 
year are discussed in note 24.
meAsuremeNt CoNVeNtioN
The financial statements are prepared in accordance 
with the historical cost convention, except for certain 
financial instruments and available for sale financial 
assets, which are carried at fair value.
BAsis of prep ArA tioN –  
goiNg CoNCerN 
The Directors are satisfied that the Group has 
sufficient resources to continue in operation for the 
foreseeable future. The Directors reviewed detailed 
financial forecasts and covenant compliance 
covering the period to october 2013 and summary 
financial forecasts for the following two years. 
As at 31
st 
october 2012 the group held cash and cash 
equivalents of £150.1m and had total borrowings of 
£180.4m. in December 2012 the group re-financed an 
element of its bank loans on more favourable terms, 
see note 26. 
For these reasons, the Directors consider it 
appropriate to prepare the financial statements  
of the Group on a going concern basis. 
CoNsoliDA tioN 
The consolidated accounts include the accounts  
of crest nicholson Holdings Limited and entities 
controlled by the company (its subsidiaries) at the 
reporting date. control is achieved where the 
company has the power to govern the financial and 
operating policies of an entity so as to obtain benefits 
from its activities. The profits and losses of 
subsidiaries acquired or sold during the year are 
included as from or up to their effective date of 
acquisition or disposal.
on acquisition of a subsidiary, all of the subsidiary’s 
separable, identifiable assets and liabilities existing at 
the date of acquisition are recorded at their fair values 
reflecting their condition at that date. All changes to 
those assets and liabilities and the resulting gains 
and losses that arise after the Group has gained 
control of the subsidiary are charged to the post 
acquisition income statement or statement of 
comprehensive income. 
gooDWill
Goodwill arising on consolidation represents the 
excess of the cost of acquisition over the Group’s 
interest in the fair value of the identifiable assets  
and liabilities of the acquired entity at the date of  
the acquisition. Goodwill arising on acquisition of 
subsidiaries and businesses is capitalised as an 
asset. Goodwill allocated to the strategic land 
holdings is recognised as an asset, being the intrinsic 
value within these holdings in the acquired entities, 
which is realised upon satisfactory planning 
permission being obtained and sale of the land.
Goodwill is assessed for impairment at each reporting 
date. Any impairment loss is recognised immediately 
in the income statement.
joiNt VeNtures 
A joint venture is an undertaking in which the Group 
has a participating interest and which is jointly 
controlled under a contractual arrangement. 
Where the joint venture involves the establishment  
of a separate legal entity, the Group’s share of results 
of the joint venture after tax is included in a single line 
in the consolidated income statement and its share of 
net assets is shown in the consolidated balance sheet 
as an investment.
Where the joint venture does not involve the 
establishment of a legal entity, the Group recognises 
its share of the jointly controlled assets and liabilities 
and income and expenditure on a line by line basis  
in the balance sheet and income statement. 
For year ended 31
st
 october 2012
Financials Welcome Business Review Governance 64  DiREc ToRs’ REPoRT & A ccoUnTs 2012
reVeNue AND profit reCogNitioN 
Revenue comprises the fair value of the consideration 
received or receivable, net of value-added tax, rebates 
and discounts but excludes the sale of properties 
taken in part exchange.
Revenue is recognised once the value of the 
transaction can be reliably measured and the 
significant risks and rewards of ownership have  
been transferred.
Revenue is recognised on house sales at legal 
completion. Revenue is recognised on land sales  
and commercial property sales from the point of 
unconditional exchange of contracts. Where the 
conditions for the recognition of revenue are met but 
the Group still has significant acts to perform under 
the terms of the contract, revenue is recognised as 
the acts are performed.
Profit is recognised on a plot by plot basis, by 
reference to the margin forecast across the related 
development site. 
For affordable housing sales in bulk, revenue is 
recognised upon practical completion and when 
substantially all risks and rewards of ownership  
are transferred to the buyer . 
Provision is made for any losses foreseen in 
completing a site as soon as they become apparent.
eXCeptioNAl items
Exceptional items are those significant items  
that are separately disclosed by virtue of their size 
or incidence to enable a full understanding of the 
Group’s financial performance.
tAXA tioN 
income tax comprises current tax and deferred tax. 
income tax is recognised in the income statement 
except to the extent that it relates to items recognised 
in other comprehensive income, in which case it is 
also recognised in other comprehensive income.
current tax is the expected tax payable on taxable 
profit for the period and any adjustment to tax payable 
in respect of previous periods. The Group’s liability for 
current tax is calculated using tax rates that have 
been enacted or substantively enacted by the balance 
sheet date.
Deferred tax is provided on temporary differences 
between the carrying amounts of assets and liabilities 
in the financial statements and the corresponding tax 
bases used in the computation of taxable profit. 
Deferred tax liabilities are recognised for all taxable 
temporary differences, except those exempted by the 
relevant accounting standard and deferred tax assets 
are recognised to the extent that it is probable that 
taxable profits will be available against which 
deductible temporary differences can be utilised.
DiViDeNDs 
Dividends are recorded in the Group’s financial 
statements in the period in which they are declared 
and the liability arises.
property, plANt AND eQuipmeNt
Property, plant and equipment are initially recognised 
at cost.
Plant, vehicles and equipment are depreciated on cost 
less residual value on a straight line basis at rates 
varying between 10% and 33% determined by the 
expected life of the assets.
Freehold land is not depreciated.
AVAilABle for sAle fiNANCiAl Assets
Available for sale financial assets are initially 
recognised at fair value. changes in fair value relating 
to the expected recoverable amount are recognised in 
the income statement; changes in fair value arising 
from a change of discount factor are recognised in 
other comprehensive income and accumulated in 
equity, until the asset is divested.
on disposal of these assets, the difference  
between the carrying value and the consideration 
received plus cumulative fair value movements 
previously recognised in equity is recognised in  
the income statement.
leAses 
A finance lease is a lease that transfers substantially 
all the risks and rewards incidental to the ownership 
of an asset; all other leases are operating leases. 
 
Assets acquired under finance leases are capitalised 
and the outstanding future lease obligations are 
shown in creditors. operating lease rentals are 
charged to the income statement on a straight line 
basis over the period of the lease. 
iNVeNtories 
inventories are valued at the lower of cost and  
net realisable value. Land includes land under 
development, undeveloped land and land option 
payments. Work in progress comprises direct 
materials, labour costs, site overheads, associated 
professional fees and other attributable overheads. 
Land inventories and the associated land creditors  
are recognised in the balance sheet from the date  
of unconditional exchange of contracts. if land is 
purchased on deferred settlement terms then the 
land and the land creditor are discounted to their  
fair value. The land creditor is then increased to the 
settlement value over the period of financing, with the 
financing element being charged as interest expense 
through the income statement.
Financials Welcome Business Review Governance 65  DiREc ToRs’ REPoRT & A ccoUnTs 2012
CAsh AND C Ash eQuiVAleNts 
cash and cash equivalents are cash balances in  
hand and in the bank. For the purpose of the cash 
flow statement, bank overdrafts are considered part 
of cash and cash equivalents as they form an integral 
part of the Group’s cash management. offset 
arrangements across Group businesses are applied 
to arrive at the net cash figure.
retiremeNt BeNefit Costs 
The Group operates a defined benefit pension scheme 
(closed to new employees and to future service 
accrual since May 2010) and also makes payments 
into a defined contribution scheme for employees. 
 
in respect of defined benefit schemes, the net 
obligation is calculated by estimating the amount  
of future benefit that employees have earned in return 
for their service in the current and prior periods, such 
benefits measured at discounted present value, less 
the fair value of the scheme assets. The discount rate 
used to discount the benefits accrued is the yield at 
the balance sheet date on AA credit rated bonds that 
have maturity dates approximating to the terms of the 
Group’s obligations. The calculation is performed by  
a qualified actuary using the projected unit method. 
The operating and financing costs of such plans  
are recognised separately in the income statement; 
service costs are spread systematically over the lives 
of employees and financing costs are recognised in 
the periods in which they arise. 
The Group recognises expected scheme gains and 
losses via the income statement and actuarial gains 
and losses are recognised in the period they occur 
directly in other comprehensive income. 
Payments to the defined contribution schemes  
are accounted for on an accruals basis. 
fiNANCiAl iNstrumeNts 
t rade receivables
Trade receivables which do not carry any interest are 
stated at their nominal amount less impairment losses.
t rade payables 
Trade payables are generally stated at their  
nominal amount; land payables with deferred 
settlement terms are recorded initially at their 
discounted present value, with interest being  
charged to the income statement over the  
duration of the deferred payment. 
Borrowings 
interest bearing bank loans and overdrafts are 
measured initially at fair value, net of direct issue 
costs. Finance charges are accounted for on an 
accruals basis in the income statement using the 
effective interest method and are added to the 
carrying amount of the instrument to the extent that 
they are not settled in the period in which they arise  
or included within interest accruals.
Derivative financial instruments and  
hedge Accounting
Derivative financial instruments are recognised  
at fair value. 
The fair value of swaps is the estimated amount that 
the Group would receive or pay to terminate the swap 
at the balance sheet date, taking into account the 
current creditworthiness of the swap counterparties.
Where the derivative instrument is deemed an 
effective hedge over the exposure being hedged, the 
derivative instrument is treated as a hedge and hedge 
accounting applied. Under a fair value hedge the 
change in the fair value of the derivative is recognised 
in the income statement and offsets the movement  
in fair value of the hedged item. Under a cash flow 
hedge, gains and losses on the effective portion of the 
change in the fair value of the derivative instrument 
are recognised in other comprehensive income and 
accumulated in a separate reserve within equity.
changes in the fair value of derivative financial 
instruments that do not qualify for hedge accounting 
and any ineffectiveness in the hedge relationship are 
recognised in the income statement as they arise.
Hedge accounting is discontinued when the hedging 
instrument expires or is sold, terminated or exercised, 
or no longer qualifies for hedge accounting. At that 
time, any cumulative gain or loss on the hedging 
instrument recognised in reserves is retained in 
reserves until the forecasted transaction occurs.  
if a hedged transaction is no longer expected to occur, 
the net cumulative gain or loss recognised in reserves 
is transferred to net profit or loss for the period.
pro VisioNs
A provision is recognised in the balance sheet 
when the Group has a present legal or constructive 
obligation as a result of a past event and it is 
probable that an outflow of economic benefits will 
be required to settle the obligation. if the effect is 
material, provisions are determined by discounting 
the expected future cash flows at a pre-tax rate that 
reflects current market assessments of the time 
value of money and, where appropriate, the risks 
specific to the liability.
impACt of st ANDArDs AND 
iNterpret AtioNs iN issue  
But Not yet effeC tiVe
The below improvements /amendments to standards 
will be effective for the Group’s 2013 financial 
statements. The Directors do not anticipate any 
material impact on the Group. 
■ Amendment to iAs 12 Deferred Taxes in relation 
to recovery of underlying assets (mandatory for 
year commencing on or after 1
st 
January 2012).
■  Amendment to iFRs 7 in relation to transfer of 
financial assets (mandatory for year commencing 
on or after 1
st 
January 2012).
■  Amendment to iFRs 7 First Time Adoption of iFRs 
in relation to hyperinflation (mandatory for year 
commencing on or after 1
st 
January 2012).
Financials Welcome Business Review Governance 66  DiREc ToRs’ REPoRT & A ccoUnTs 2012
2. reVeNue
There is no Group revenue in geographical markets outside the United Kingdom. no segmental 
information has been presented as the Directors consider that as the Group’s main operation is that  
of a housebuilder and it operates entirely within the UK, there are no separate segments either 
business or geographic to disclose having taken into account the aggregation criteria provisions  
of iFRs 8.
3. operA tiNg profit
operating profit from continuing activities is stated after charging the items set  
out below:
2012
£m
2011
£m
staff costs (note 4) 35.5 31.8
Depreciation 1.2 1.2
Operating lease rentals:
Hire of plant and machinery 0.2 0.2
other – including land and buildings 4.0 4.1
Auditors’ remuneration: £000 £000
Audit of these financial statements 38 38
Audit of financial statements of subsidiaries pursuant to legislation 116 112
other services relating to corporate restructuring - 26
other services relating to taxation 58 247
in addition to the Auditors’ remuneration disclosed above, fees of £nil (2011: £2,000) were paid to the 
Group’s auditor by the crest nicholson Money Purchase pension scheme in respect of the audit of  
the scheme.
Amounts paid to the company’s Auditor in respect of services to the company, other than the audit  
of the company’s financial statements, have not been disclosed as the information is required instead  
to be disclosed on a consolidated basis.
Financials Welcome Business Review Governance 67  DiREc ToRs’ REPoRT & A ccoUnTs 2012
4. st Aff NumBers AND Costs
2012 2011
Average number of persons employed by the Group Number Number
Development 556 494
The Directors consider all employees of the Group to be employed within the same category  
of Development.
Staff costs £m £m
Wages and salaries 30.3 27.3
social security costs 3.6 3.2
other pension costs 1.6 1.3
35.5 31.8
Key management comprises the Holdings and operating Boards, as they are considered to have 
the authority and responsibility for planning, directing and controlling the activities of the Group. 
Details of Directors’ remuneration, pension and share based payments are as follows:
2012 2011
Directors’ Remuneration £000 £000
Aggregate emoluments 1,891 2,397
Retirement benefits have accrued to no (2011: no) Directors under the crest nicholson defined 
benefit scheme as this scheme closed in 2010. The aggregate value of company defined benefit 
contributions paid for Directors was £nil (2011: £nil). The aggregate value of the company 
defined contributions paid for Directors was £56,142 (2011: £60,000).
Highest paid Director
Emoluments 1,128 1,019
Defined benefit scheme – accrued pension at end of year 123 117
Financials Welcome Business Review Governance 68  DiREc ToRs’ REPoRT & A ccoUnTs 2012
5. fiNANCe iNCome AND Costs
2012
£m
2011
£m
interest income 1.4 0.4
imputed interest on available for sale financial assets 2.9 2.6
Expected return on defined benefit pension plan assets 4.9 5.9
Finance income 9.2 8.9
Finance costs 2012
Nominal 
bank interest 
charges
£m
Amortisation 
of bank debt 
fair value 
discount
£m
Total
£m
Bank term loan – Facility B 7.3 - 7.3
other interest 3.1 - 3.1
10.4 - 10.4
imputed interest on deferred land creditors 1.0 - 1.0
interest on defined benefit pension plan obligations 7.2 - 7.2
8.2 - 8.2
18.6 - 18.6
Finance costs 2011
Nominal 
bank interest 
charges
£m
Amortisation 
of bank debt 
fair value 
discount
£m
Total
£m
Bank term loan – Facility B 6.5 11.9 18.4
Bank term loan – Facility E 4.8 51.7 56.5
other interest 7.7 - 7.7
19.0 63.6 82.6
imputed interest on deferred land creditors 1.0 - 1.0
interest on defined benefit pension plan obligations 7.3 - 7.3
8.3 - 8.3
27.3 63.6 90.9
Financials Welcome Business Review Governance 69  DiREc ToRs’ REPoRT & A ccoUnTs 2012
6. tAXAtioN
2012
£m
2011
£m
Current tax
UK corporation tax on profits for the year - (0.3)
Adjustment in respect of prior years (0.3) (0.7)
Total current tax (0.3) (1.0)
Deferred tax
Reversal/(origination) of temporary differences in the current year 15.5 (1.5)
Deferred tax change in rate from 25% to 23% 6.0 -
Deferred tax arising on previously unrecognised temporary differences (23.0) (65.0)
Total deferred tax (note 16) (1.5) (66.5)
Total tax in income statement (1.8) (67.5)
The total tax credit for the year is lower (2011: tax credit, higher) than the standard rate  
of UK corporation tax of 24.83% (2011: 26.83%). The differences are explained below:
£m £m
Profit/(loss) before tax 62.1 (27.0)
Tax on profit/(loss) at 24.83% (2011: 26.83%) 15.4 (7.2)
Effects of:
Expenses not deductible for tax purposes 1.0 0.8
Adjustments to tax charge in respect of prior years (0.3) (0.7)
Deductible temporary differences not recognised (1.1) (2.0)
stock fair value adjustment - (13.7)
Deferred tax change in rate from 25% to 23% 6.0 -
Unrecognised tax losses 0.2 20.3
Deferred tax arising on previously unrecognised temporary differences (23.0) (65.0)
Total tax in income statement (1.8) (67.5)
 
7. DiViDeNDs
There were no distributions to equity shareholders in the year (2011: nil).  
no dividend has been proposed by the Directors after the balance sheet date.
Financials Welcome Business Review Governance 70  DiREc ToRs’ REPoRT & A ccoUnTs 2012
8. iNtANgiBle Assets
Total
Goodwill 
£m
Cost
At beginning and end of year 47.7
Impairment
At beginning and end of year (18.7)
Carrying value
At beginning and end of year 29.0
Goodwill arose on the acquisition of castle Bidco Limited on 24
th
 March 2009. Goodwill is allocated to acquired strategic 
land holdings and is tested annually for impairment. The recoverable amounts are determined by assessing value in 
use, being the present value of the forecast cash flows from the expected development and sale of properties on the 
strategic land. The forecast looks at the likelihood and scale of permitted development, forecast build costs and forecast 
selling prices, using a discount rate of 8.89% (2011: 9.21%), covering a period of 22 years (being the minimum period that 
management expects to benefit from the acquired strategic land holdings) and based on current market conditions. 
9. property, plANt AND eQuipmeNt
Plant, Vehicles 
and Equipment
£m
Cost
At 31
st 
october 2010 8.7
Additions 0.1
At 31
st 
october 2011 8.8
Additions 0.5
At 31
st 
October 2012 9.3
Accumulated depreciation
At 31
st 
october 2010 4.7
charged in the year 1.2
At 31
st 
october 2011 5.9
charged in the year 1.2
At 31
st 
October 2012 7.1
Carrying value
At 31
st 
october 2011 2.9
At 31
st 
October 2012 2.2
Financials Welcome Business Review Governance 71  DiREc ToRs’ REPoRT & A ccoUnTs 2012
10. iNVestmeNts 
Cost of 
investment/
Loans
£m
Share of Post 
Acquisition 
Reserves
£m
Total
£m
Joint ventures
At 31
st 
october 2010 3.3 0.4 3.7
share of loss for the year - (1.4) (1.4)
At 31
st 
October 2011 3.3 (1.0) 2.3
share of loss for the year - (1.8) (1.8)
net liabilities offset against amounts due from joint ventures (1.9) 4.3 2.4
At 31
st 
October 2012 1.4 1.5 2.9
The Group’s share of joint ventures net assets, income and expense is made up as follows:
2012
£m
2011
£m
non-current assets 0.1 6.1
current assets 31.0 37.0
current liabilities (29.6) (13.9)
non-current liabilities (1.0) (26.9)
0.5 2.3
net liabilities offset against amounts due from joint ventures 2.4 -
2.9 2.3
income - -
Expenditure (1.8) (1.4)
Loss (1.8) (1.4)
The Group has a 50% interest in crest/Galliford Try (Epsom) LLP, a Limited 
Liability Partnership set up to develop three sites in Epsom. The LLP 
purchased the land and is responsible for developing the infrastructure on the 
sites. The risks and rewards of development will accrue to the development 
partners, crest nicholson and Galliford Try. 
At 31
st
 october 2012, crest/Galliford Try (Epsom) LLP had negative capital 
Employed of £3m (2011: positive capital employed £42m), due to the earlier 
repayment during the period of non-current loans. The share of net liabilities 
has been recognised against amounts due from joint ventures.
The Group has a 50% interest in crest nicholson Bioregional Quintain LLP,  
a Limited Liability Partnership set up to develop a site in Brighton. The site  
was substantially completed during accounting year ended 31
st 
october 2010; 
at 31
st 
october 2012, crest nicholson Bioregional Quintain LLP had capital 
Employed of £3.7m (2011: £3.7m).
The Group owns 500 ordinary shares of £1 each representing 50% of the 
issued share capital of Brentford Lock Limited, a company registered in 
England, which was set up to redevelop a site in West London. The site was 
completed and all units sold in 2006. At 31
st 
october 2012, £3.3m (2011: 3.1m) 
was due from crest nicholson operations Limited to Brentford Lock Limited, 
pending declaration of a final dividend.
The Group owns 414,860 ordinary shares of 
£1 each representing 50% of the issued share 
capital of Greenwich Peninsula n0206 Limited, a 
company registered in England, which was set up 
to redevelop a site in Greenwich, London. The site 
has detailed planning consent. At 31
st 
october 2012 
Greenwich Peninsula n0206 Limited had capital 
employed of £0.4m (2011: £0.8m). 
subsidiary undertakings
The subsidiary undertakings that are significant  
to the Group and traded during the year are set out 
below. The Group’s interest is in respect of ordinary 
issued share capital that is wholly owned and all 
the subsidiary undertakings are incorporated in 
Great Britain and included in the consolidated 
financial statements. A full list of subsidiaries  
is provided with the company’s annual return.
subsidiary Nature of business
castle Bidco Limited Holding company
crest nicholson PL c Holding company
crest nicholson  Residential and 
operations Limited commercial property 
 development
Financials Welcome Business Review Governance 72  DiREc ToRs’ REPoRT & A ccoUnTs 2012
11. AVAilABle for sAle fiNANCiAl Assets
2012
£m
2011
£m
At beginning of the year 26.8 21.1
Additions 3.7 1.7
Disposals (2.0) (0.7)
imputed interest 2.9 2.6
change in fair value (0.3) 2.1
At the end of the year 31.1 26.8
The Group operates an ‘EasyBuy’ scheme, under which up to 25% of the purchase price of selected 
properties is funded through a loan from the Group, secured on the property. The Group retains a 
percentage interest in the market value of the property equal to the initial percentage of the loan 
provided. These loans are repayable at the relevant percentage of the market value of the property  
upon sale or transfer of ownership of the property or within ten years, whichever is sooner . The 
purchaser also has an option to repay the loan earlier than would otherwise be required, subject 
to a market valuation of the property. interest is payable on the outstanding balance from the fifth 
anniversary of the purchase.
The Group has also participated in the Government’s ‘HomeBuy’ schemes, under which up to 30%  
of the purchase price of selected properties is funded through loans of up to 15% each from the Group 
and from the Homes and communities Agency, secured on the property. The Group retains an interest 
in the market value of the property equal to the initial percentage of the loan provided. These loans 
mature upon sale or transfer of ownership of the property or within 25 years, whichever is sooner . 
The purchaser also has an option to repay the loan earlier than would otherwise be required, subject 
to a market valuation of the property. interest is payable on the outstanding balance from the fifth 
anniversary of the purchase.
Available for sale financial assets are held at fair value. The Directors believe that there is sufficient 
relevant expertise within the Group to perform this valuation.
12. iNVeNtories
2012
£m
2011
£m
Work in progress: land, building and development 428.4 343.5
completed buildings including show houses 41.0 50.7
469.4 394.2
included within inventories is £233.5m (2011: £286.1m) expected to be recovered in more than  
12 months. inventories to the value of £281.8m (2011: £219.3m) were recognised as expenses  
in the year .
Financials Welcome Business Review Governance 73  DiREc ToRs’ REPoRT & A ccoUnTs 2012
13. trADe AND other reCeiVABles
2012
£m
2011
£m
Current  
Trade receivables 3.7 7.5
Recoverable on contracts 8.3 20.6
Due from joint ventures 16.9 12.7
other receivables 11.5 4.8
Prepayments and accrued income 1.1 1.1
41.5 46.7
14. iNterest BeAriNg lo ANs AND Borro WiNgs
2012
£m
2011
£m
Non-current
Term loans 152.0 150.0
other loans 24.1 12.7
176.1 162.7
Current  
Loan notes - 2.0
other loans 4.3 -
4.3 2.0
15. trADe AND other p AyABles
2012
£m
2011
£m
Non-current
Land payables on contractual terms 33.7 23.3
Accruals 1.1 1.4
34.8 24.7
Current
Land payables on contractual terms 56.6 35.0
other trade payables 22.2 21.7
Payments on account 0.5 5.3
Due to joint ventures 1.4 1.6
Taxes and social security costs 1.2 1.6
other payables 27.4 30.4
Accruals 85.6 74.7
194.9 170.3
Financials Welcome Business Review Governance 74  DiREc ToRs’ REPoRT & A ccoUnTs 2012
16. DeferreD t AX Assets
2012
£m
2011
£m
The deferred tax asset comprises:
At the beginning of year 75.2 -
Reversal/(origination) of temporary differences in the current year (15.5) 1.5
 Deferred tax change in rate from 25% to 23% (6.0) -
Deferred tax arising on previously unrecognised temporary differences 23.0 65.0
Amount (charged)/credited to other comprehensive income (1.8) 8.7
At the end of the year 74.9 75.2
2012
Recognised
£m
2012
Not
Recognised
£m
2011
Recognised
£m
2011
Not
Recognised
£m
The deferred tax asset comprises:
Tax losses 26.5 12.7 10.6 24.5
Accelerated pension payments 0.9 - 1.5 -
inventories fair value 39.5 - 54.4 -
other timing differences 1.1 - - 0.9
68.0 12.7 66.5 25.4
Deferred tax on pension deficit shown in other  
comprehensive income
6.9 - 8.7 -
Deferred tax asset 74.9 12.7 75.2 25.4
At the time of finalisation of these financial statements, the expected future rate of corporation tax 
was 23% (2011: 25%). A further reduction in the corporation tax rate to 21% had been announced but 
not substantively enacted and is therefore not reflected in these financial statements. Trading losses 
of £26.5m and inventories fair value adjustments of £39.5m are expected to be recoverable in full  
and are therefore fully recognised as deferred tax assets in the above amounts. non-trading deficits 
of £12.7m (2011: £1.0m) have not been recognised since these can only be offset against future 
non-trading income.
inventories fair value represents temporary differences on the carrying value of inventory fair valued 
on the acquisition of castle Bidco Ltd in 2009.
Financials Welcome Business Review Governance 75  DiREc ToRs’ REPoRT & A ccoUnTs 2012
17. pro VisioNs 
Rental 
and other 
obligations 
in respect 
of vacant 
properties
£m
Future losses 
on joint 
ventures 
£m
Total
£m
Non-current
At 31
st 
october 2010 5.8 7.0 12.8
credited to the income statement (0.7) (1.0) (1.7)
At 31
st 
october 2011 5.1 6.0 11.1
credited to the income statement (0.2) (3.8) (4.0)
At 31
st 
October 2012 4.9 2.2 7.1
Current
At 31
st 
october 2010 1.7 4.8 6.5
(credited)/charged to the income statement (0.7) 0.9 0.2
At 31
st 
october 2011 1.0 5.7 6.7
(credited)/charged to the income statement (0.3) 0.5 0.2
At 31
st 
October 2012 0.7 6.2 6.9
Financials Welcome Business Review Governance 76  DiREc ToRs’ REPoRT & A ccoUnTs 2012
18. shAre CApit Al
Shares issued 
Number
Nominal Value 
pence
Share capital  
£
Share 
premium 
account 
£
A shares 70,000 0.0001 7 -
Deferred shares 18,000 0.005 90 -
B shares 1,300 0.0001 - -
c shares 6,957 100 6,957 243,043
D shares 25,000 0.0001 1 29,999
ordinary shares 10,000,000 100 10,000,000 240,000,000
As at 31
st 
October 2011 10,121,257 10,007,055 240,273,042
B shares allotted in the year 4,450 0.0001 - -
D shares allotted in the year 5,000 0.0001 - -
A shares purchased and cancelled in the year (5,000) 0.0001 - -
D shares purchased and cancelled in the year (1,875) 0.0001 - -
As at 31
st 
October 2012 10,123,832 10,007,055 240,273,042
shares purchased and Cancelled in the year
During the year the company purchased and cancelled D and A shares for £17,357 in cash. 
Date Share type Number of shares Nominal value Purchase price % of total capital
July 2012 D 1,875 £0.19 £0.00 0.02%
July 2012 A 5,000 £0.50 £17,357 0.05%
During the year 4,450 B shares and 5,000 D shares were allotted at par to certain members  
of management pursuant to a share scheme.
The classes of share in issue at 31
st
 october 2012 hold the following rights:
A shares and D shares
The shares do not confer voting rights and only confer limited dividend and capital distribution rights. 
They do not confer any rights of redemption.
Deferred and B shares
The shares do not confer voting or dividend rights and only confer limited capital distribution rights. 
They do not confer any rights of redemption.
C shares and ordinary shares
The shares confer voting, dividend and capital distribution (including on winding up) rights.  
They do not confer any rights of redemption.
Financials Welcome Business Review Governance 77  DiREc ToRs’ REPoRT & A ccoUnTs 2012
19. fiNANCiAl iNstrumeNts AND risK mANA gemeNt
Group operations are financed through net borrowings, comprising bank and loan facilities which are secured 
by fixed charges over land and work in progress.
fAir V Alues
financial Assets
The Group’s financial assets comprise cash equivalents, available for sale financial assets and trade and 
other receivables. The carrying amount of financial assets equate to their fair value. At 31
st 
october 2012 cash 
equivalents consisted of sterling cash deposits of £150.1m (2011: £121.9m), with solicitors and on current 
account, £31.1m (2011: £26.8m) of available for sale financial assets and £42.5m (2011: £46.7m) of trade  
and other receivables. 
financial liabilities
The Group’s financial liabilities comprise term loans, other loans, trade payables, payments on account, loans 
from joint ventures and accruals. The carrying amount of the trade payables, payments on account, loans from 
joint ventures and accruals equate to their fair value. The fair values of the term loan, other loans and loan 
notes are calculated based on the present value of future principal and interest cash flows, discounted at the 
market rate of interest at the balance sheet date. 
The fair values of the facilities determined on this basis are:
2012 Nominal interest rate
Face value 
2012
£m
Carrying value 
2012
£m
Fair value 
2012
£m
Year of 
maturity
Facility B Term loan 3 mth LiBoR + 6.5% 150.0 150.0 150.0 2015
Facility c Term loan 3 mth LiBoR + 3.5% 2.0 2.0 2.0 2015
Get Britain Building loans EU Reference rate + 4% 12.0 12.0 12.0 2014-2015
other loans 6.75% 12.1 12.1 12.1 2016
Total non-current  
interest bearing loans
176.1 176.1 176.1
Get Britain Building loans EU Reference rate + 4% 4.3 4.3 4.3 2013
Total current interest  
bearing loans
4.3 4.3 4.3
2011 Nominal interest rate
Face value 
2011
£m
Carrying value 
2011
£m
Fair value 
2011 
£m
Year of 
maturity
Facility B Term loan
3 mth LiBoR + 3.5% to 
14.09.12 then + 6.5% 
150.0 150.0 150.0 2015
other loans 6.75% 12.7 12.7 12.7 2015
Total non-current  
interest bearing loans
162.7 162.7 162.7
Loan notes 3 mth LiBoR – 0.50% 2.0 2.0 2.0 2012
Total current interest  
bearing loans
2.0 2.0 2.0
The carrying amount of the financial liabilities equates to their fair value. The 2012 and 2011 fair valuation are 
calculated based on the present value of future principal and interest cash flows, discounted at the market rate 
of interest at the balance sheet date. After the balance sheet date, the Group re-financed an element of its bank 
loans (note 26).
Financials Welcome Business Review Governance 78  DiREc ToRs’ REPoRT & A ccoUnTs 2012
land purchased on extended p ayment terms
When land is purchased on extended payment terms, the Group initially records it at its fair value with a land 
creditor recorded for any outstanding monies based on its fair value assessment. Fair value is determined 
by using the effective interest method. The difference between the nominal value and the initial fair value is 
amortised over the period of the extended credit term and charged to finance costs, increasing the value of  
the land creditor such that at the date of maturity the land creditor equals the payment required.
undrawn Borrowing f acilities
The Group had no undrawn committed borrowing facilities at 31
st 
october 2012 (2011: £nil). The repayment 
terms of the facilities are set out below. in addition there were undrawn guarantee facilities of £12.2m  
(2011: £5.9m).
CreDit risK
credit risk is the risk of financial loss to the Group if a customer or other counterparty to a financial instrument 
fails to meet its contractual obligations, and arises principally from the Group’s cash deposits, as most 
receivables are secured on land and buildings.
surplus cash is placed on deposit with banks with a minimum credit rating, or in accordance with company 
policy. The security and suitability of these banks is monitored by Treasury on a regular basis. 
Trade and other receivables are mainly amounts due from housing associations and commercial property sales, 
which are within credit terms. Management considers that the credit ratings of these various debtors are good 
and therefore credit risk is considered low. 
The maximum exposure to credit risk at 31
st 
october 2012 is represented by the carrying amount of each 
financial asset in the balance sheet. The Group has no substantial exposure to any individual third party.
liQuiDity risK
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. 
cash flow forecasts are produced to monitor the expected cashflow requirements of the Group against the 
available facilities. The principal risks within these cashflows relate to achieving the level of sales volume and 
prices in line with current forecasts.
The following are the contractual maturities including estimated cash flows of the financial liabilities of the 
Group at 31
st 
october 2012: 
2012
Carrying 
value
£m
Contractual 
cash flows
£m
Within 1 year
£m
1-2 years
£m
2-3 years
£m
More than  
3 years
£m
Facility B Term loan 150.0 181.6 10.6 10.6 160.4 -
Facility c Term loan 2.0 2.2 0.1 0.1 2.0 -
Get Britain Building loans 16.3 18.1 4.5 7.4 4.2 2.0
other loans 12.1 15.7 - - - 15.7
Financial liabilities  
carrying no interest
140.4 140.4 106.7 7.8 5.0 20.9
At 31
st 
October 2012 320.8 358.0 121.9 25.9 171.6 38.6
other loans of £12.1m are from a joint venture partner and repayable at a date based on progress of the  
development and/or the termination of the joint venture agreement. The timing and amount of future cash  
flows given in the table above is based on the Directors’ best estimate of the likely outcome. 
Financials Welcome Business Review Governance 79  DiREc ToRs’ REPoRT & A ccoUnTs 2012
2011
Carrying 
value
£m
Contractual 
cash flows
£m
Within 1 year
£m
1-2 years
£m
2-3 years
£m
More than  
3 years
£m
Facility B Term loan 150.0 190.5 6.8 11.2 11.2 161.3
Loan notes 2.0 2.0 2.0 - - -
other loans 12.7 15.4 - - - 15.4
Financial liabilities  
carrying no interest
115.8 115.8 92.5 12.3 7.9 3.1
At 31
st 
October 2011 280.5 323.7 101.3 23.5 19.1 179.8
mArKet risK
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and  
equity prices, will affect the Group’s income or the value of its holdings of financial instruments. 
interest rate risk
The Group is exposed to interest rate risk due to borrowing funds at floating interest rates. 
Borrowings are funded through a term loan which is subject to variable interest rates that are unhedged.
At 31
st 
october 2012, the interest rate profile of the financial liabilities of the Group was:
2012 Carrying amount
Sterling
Floating rate 
financial liabilities
£m
Fixed rate financial 
liabilities
£m
Financial liabilities 
carrying no interest
£m
Total
£m
Bank borrowings, loan notes  
and long term creditors
180.4 - 140.4 320.8
2011 Carrying amount
Sterling
Floating rate 
financial liabilities
£m
Fixed rate financial 
liabilities
£m
Financial liabilities 
carrying no interest
£m
Total
£m
Bank borrowings, loan notes and  
long term creditors
164.7 - 115.8 280.5
The floating rate financial liabilities are subject to interest rates referenced to LiBoR. These rates are for  
a period of between one and twelve months. 
For financial liabilities that have no interest payable but for which imputed interest is charged, consisting  
of land creditors, the weighted average period to maturity is 72 months (2011: 30 months). Financials Welcome Business Review Governance 80  DiREc ToRs’ REPoRT & A ccoUnTs 2012
2012
£m
2011
£m
The maturity of the financial liabilities is:
Repayable within one year 111.1 94.5
Repayable between one and two years 14.5 12.3
Repayable between two and five years 162.2 157.9
Repayable after five years 33.0 15.8
320.8 280.5
seNsitiVity ANAlysis
A change of 100 basis points in interest rates at the balance sheet date would have increased/ 
(decreased) equity and profit or loss by the amounts shown below. This calculation assumes that the 
change occurred at the balance sheet date and had been applied to risk exposures existing at that date. 
This analysis assumes that all other variables remain constant and considers the pre-tax effect  
of financial instruments with variable interest rates.
2012 2011
Equity 
£m
Income 
statement
£m
Equity
£m
Income 
statement
increase in rates (1.8) (1.8) (1.5) (1.5)
Decrease in rates 1.8 1.8 1.5 1.5
CApit Al mANA gemeNt
The Group’s policies seek to match long term assets with long term finance and ensure that there 
is sufficient working capital to meet the Group’s commitments as they fall due, comply with the loan 
covenants and continue to sustain trading. 
Management will continue to monitor actual cash flows against the approved cash flow forecast.
fAir V Alue hierArChy
The Group holds available for sale assets at fair value. The valuation method falls under Level 3 of the 
iFRs 7 fair value hierarchy: inputs for the asset or liability that are not based on observable market data 
(unobservable inputs). The amounts are given in note 11. 
Financials Welcome Business Review Governance 81  DiREc ToRs’ REPoRT & A ccoUnTs 2012
20. employee BeNefits 
retiremeNt BeNefit oBlig AtioNs
Defined contribution scheme
The Group (through crest nicholson PLc) operates a defined contribution scheme for new 
employees. The assets of the scheme are held separately from those of the Group in an 
independently administered fund. The service cost of this scheme for the year was £1.3m  
(2011: £1.1m). At the balance sheet date there were no outstanding or prepaid contributions.
Defined benefit scheme
The Group (through crest nicholson PLc) operates a contributory defined benefit pension 
scheme which is closed to new entrants. The assets of the scheme are held separately from 
those of the Group, being invested in managed funds.
The most recent funding valuation of the main scheme was carried out as at 31
st 
August 2012  
by a professionally qualified actuary using the projected unit method. 
The assets of the defined benefit scheme have been calculated at fair value and the liabilities,  
at the balance sheet date under iAs 19 (Revised), using the projected unit method and based  
on the following financial assumptions:
 31 October 
2012
 %pa
 31 October 
2011
 %pa
Discount rate 4.3% 5.0%
Price inflation 2.6% 3.1%
Pension increases on benefit increasing in line with 5% or RPi if lower 2.6% 3.0%
Expected return on invested assets 4.4% 5.0%
Expected return on insurance annuity contracts 4.3% 5.0%
The expected return on assets reflects the weighted average return on the categories of scheme 
assets shown below.
Mortality assumptions are as follows:
 ■ Mortality before retirement: sAPs s1 PMA and PFA tables with future improvements in line 
with cMi 2011 and a 1.5% per annum long term reduction in death rates.
 ■ Mortality after retirement: sAPs s1 PMA and PFA tables with future improvements in line 
with cMi 2011 and a 1.5% per annum long term reduction in death rates.
The major categories of scheme assets as a percentage of the total fair value of scheme assets 
are as follows:
 2012
 %
 2011
 %
Equities 56.4% 52.4%
Bonds 28.4% 28.1%
Property 2.0% 2.1%
cash 5.0% 9.4%
secured annuities 8.2% 8.0%
Total 100.0% 100.0%
Financials Welcome Business Review Governance 82  DiREc ToRs’ REPoRT & A ccoUnTs 2012
The amounts recognised in the year are as follows:
 2012
 £m
 2011
 £m
current service cost – recognised in administrative expenses - -
interest cost – recognised in finance costs 7.2 7.3
Expected return on scheme assets – recognised in finance income (4.9) (5.9)
Total 2.3 1.4
Actuarial loss 1.7 10.2
Total defined benefit scheme costs recognised in the year 4.0 11.6
The cumulative debit to the statement of comprehensive income since the adoption of iAs 19  
is £33.0m (2011: £31.3m).
The actual return on scheme assets is:
 2012
 £m
 2011
 £m
Expected return on scheme assets 4.9 5.9
Actuarial loss on scheme assets (0.6) (0.2)
Actual return on scheme assets 4.3 5.7
The amounts included in the balance sheet arising from the Group’s obligation  
in respect of its defined benefit scheme are as follows:
 2012
 £m
 2011
 £m
Present value of defined benefit obligations 147.9 144.2
Fair value of scheme assets (118.0) (109.7)
Defined benefit liability recognised in the balance sheet 29.9 34.5
A deferred tax asset of £6.9m (2011: £8.7m) has been recognised on the balance sheet.
Movements in the liability recognised on the balance sheet were as follows:
 2012
 £m
 2011
 £m
At beginning of year 34.5 36.1
Total expense (as shown above) 4.0 11.6
company contributions paid in the year (8.6) (13.2)
At end of year 29.9 34.5
Financials Welcome Business Review Governance 83  DiREc ToRs’ REPoRT & A ccoUnTs 2012
changes in the present value of the defined benefit obligation were as follows:
 2012
 £m
 2011
 £m
At beginning of year 144.2 131.0
interest cost 7.2 7.3
Actuarial losses 1.0 9.9
Benefits and expenses paid (4.5) (4.0)
At end of year 147.9 144.2
changes in the fair value of scheme assets were as follows:
 2012
 £m
 2011
 £m
At beginning of year 109.7 94.9
Expected return on scheme assets 4.9 5.9
Actuarial loss on scheme assets (0.6) (0.2)
Employer contributions 8.6 13.2
Benefits and expenses paid (4.6) (4.1)
At end of year 118.0 109.7
A history of experience adjustments is as follows:
2012
 £m
2011
 £m
2010
 £m
2009
 £m
2008
 £m
Present value of defined  
benefit obligation
147.9 144.2 131.0 136.4 91.6
Fair value of scheme assets (118.0) (109.7) (94.9) 90.3 78.0
Deficit in the scheme 29.9 34.5 36.1 46.1 13.6
Experience adjustments  
on scheme liabilities
(1.0) (9.9) 4.4 35.7 31.4
Percentage of scheme liabilities 0.7% 6.9% 3.4% 26.2% 34.3%
Experience adjustments  
on scheme assets
(0.6) (0.2) 1.8 8.5 29.0
Percentage of scheme assets 0.5% 0.2% 1.9% 9.4% 37.2%
The expected employer contribution to the defined benefit scheme during 2013 is £9.0m (2012: £8.6m).
21. CoNtiNgeNt liABilities
There are performance bonds and other engagements, including those in respect of joint venture 
partners, undertaken in the ordinary course of business from which it is anticipated that no material 
liabilities will arise.
Financials Welcome Business Review Governance 84  DiREc ToRs’ REPoRT & A ccoUnTs 2012
23. relA teD pArty trANsAC tioNs 
The company’s non-executive directors have other associations other than the company. From time to time the  
Group may buy products or services from organisations with which a non-executive director has an association.  
Where this occurs, it is on normal commercial terms and without the direct involvement of the non-executive director .
The Group has historical joint venture arrangements with subsidiaries of Quintain plc on arm’s length terms.  
William Rucker (chairman of the company) is chairman of Quintain plc.
The Group has entered into the following related party transactions:
(i) Transactions with joint ventures, which are disclosed in note 10. The Group has provided book keeping services  
to certain JVs which have been recharged at cost.
(ii) All holders of the ordinary shares provide term loans to the Group in proportion to their shareholding at the balance 
sheet date.
At 31
st 
october 2012, the interests of the shareholders in the financial instruments  
of the Group were as follows:
 2012
 £m
 2011
 £m
Term loans 152.0 150.0
in addition, the shareholders provide a £50.0m bank guarantee facility. Guarantees of £37.8m (2011: £44.1m) were 
outstanding at 31
st 
october 2012.
Borrowings of the Group are secured against the value of stock and work in progress.
(iii) Key management and other senior crest nicholson employees have interests in the share capital  
of the company. 
As part of the financial restructuring of the Group that took effect on 13th september 2011, a Management incentive Plan 
was established for the benefit of key managers, providing for equity participation in crest nicholson Holdings Limited.
Management equity comprises core Equity (based on the ordinary shares currently held by management) and Flowering 
Equity (comprising a new class of share).
shareholdings comprise the following classes of share:
‘ A’ shares – 70,000
‘ B’ shares – 6,100
‘ D’ shares – 30,000
22. operA tiNg leAses
At 31
st
 october 2012 total outstanding commitments for future minimum  
lease payments under non-cancellable operating leases were:
 2012
 £m
 2011
 £m
Land and buildings
Within one year 3.1 3.3
Less: minimum sub-lease income (1.1) (1.2)
Between two and five years 9.2 10.6
Less: minimum sub-lease income (2.5) (3.3)
After five years 5.6 7.2
Less: minimum sub-lease income - -
14.3 16.6
Other
Within one year 1.1 0.8
Between two and five years 1.7 1.2
2.8 2.0
Financials Welcome Business Review Governance 85  DiREc ToRs’ REPoRT & A ccoUnTs 2012
24. ACCouNtiNg estimA tes AND juDgemeNts
Management considers the key estimates and judgments made in the accounts to be related to the valuation 
of Goodwill, Available for sale Financial Assets, carrying Value of Land and Work in Progress and Profit 
Recognition, Deferred Tax and Pension Liabilities.
gooDWill
The carrying value of goodwill is substantially dependent on the ability of the Group to successfully progress 
its strategic land holdings. changes to the planning regime could undermine current assumptions about the 
sites which are expected to be successfully developed.
AVAilABle for sAle fiNANCiAl Assets
Available for sale financial assets are held at the present value of expected future cash flows taking into 
account the estimated market value of the property at the estimated time of repayment. There are a number 
of uncertainties inherent in such estimates, which would impact on the carrying value of such assets.
CArryiNg V Alue of lAND AND WorK iN progress AND profit reCogNitioN
inventories of land, work in progress and completed units are stated in the balance sheet at the lower of 
cost and net realisable value. Due to the nature of development activity and in particular, the length of the 
development cycle, the Group has to allocate site-wide development costs such as infrastructure between 
units being built and/or completed in the current year and those for future years. it also has to make 
estimates of the cost to complete such developments. These estimates are reflected in the margin recognised 
on developments where unsold plots remain, and in the carrying value of land and work in progress.
There is a degree of inherent uncertainty in making such estimates. The Group has established internal 
controls that are designed to ensure an effective assessment is made of inventory carrying values and the 
costs to complete developments.
DeferreD tAX
Management assess whether there will be sufficient future profits to utilise deferred tax assets recognised  
at the balance sheet date.
in 2011 and 2012, management recognised these assets on the grounds that the financial restructuring  
of the group made realisation of the related tax benefit through taxable profits probable.
peNsioN liABilities
Management has employed the services of an actuary in setting these estimates, however, they recognise 
the risk that both expected investment returns and ultimate scheme payments may differ substantially from 
current forecasts.
25. ul timA te CoNtrolliNg pArty
The ultimate controlling party of the Group is Varde Partners, inc. by virtue of their control of 60% of the 
ordinary share capital of crest nicholson Holdings Limited.
26. post BAlANCe sheet eVeNts 
After the balance sheet date, the Group conducted a debt refinancing on 7 December 2012 which included 
(i) entering into a new £50 million revolving credit facility (Facility Agreement B); 
(ii) amending and restating its Facility Agreement A with certain of its shareholders (Amended Facility 
Agreement A); and 
(iii) borrowing £50 million under Facility Agreement B and utilising the proceeds as well as cash to repay  
£77 million of existing borrowings under Facility Agreement A, cancelling the associated commitments and 
leaving outstanding a £75 million four-year term loan under Amended Facility Agreement A. 
on 23 november 2012, to reduce the Group’s guarantee facility in advance of the December refinancing,  
the Group granted security over £48 million of ring-fenced land assets to the pension trustee in return  
for the release of £30 million of the bank guarantee provided under Facility Agreement A. The remainder  
of the Group’s bank guarantee provided under Facility Agreement A was released as part of the  
December refinancing, with the Group obtaining the necessary replacement guarantees under the  
£10 million guarantee ancillary facility included in Facility Agreement B.
Financials Welcome Business Review Governance 86  DiREc ToRs’ REPoRT & A ccoUnTs 2012
As at 31
st
 october 2012
Note
2012
£000
2011
£000
Fixed assets
investments 4 - -
Current assets
Debtors 5 301,088 254,144
cash at bank and in hand - 280
Net current assets 301,088 254,424
Total assets less current liabilities 301,088 254,424
Net assets 301,088 254,424
Capital and reserves
called up share capital 6 10,007 10,007
share premium account 7 240,273 240,273
Profit and loss account 7 50,808 4,144
Equity shareholders’ funds 7 301,088 254,424
The notes on pages 87 to 89 form part of these financial statements.
Approved by the Board of Directors on 16
th
 January 2013 and signed on its behalf by:
s stone
p j Bergin
Directors
Registered no: 6800600
There are no recognised gains and losses for the year (2011: nil)
Crest NiCholsoN holDiNgs limiteD
CompANy BAlANCe sheet
Financials Welcome Business Review Governance 87  DiREc ToRs’ REPoRT & A ccoUnTs 2012
1. ACCouNtiNg poliCies
The following accounting policies have been applied consistently in dealing with items that are considered 
material in relation to the financial statements.
BAsis of prep ArA tioN
The company financial statements have been prepared under the historical cost accounting rules and  
in accordance with applicable UK Accounting standards.
The accounting policies have been applied consistently in dealing with items which are considered material.
Under section 408 of the companies Act 2006 the company is exempt from the requirement to present its own 
profit and loss account. The company recorded a profit for the year of £46,657,000 (2011: profit £4,144,000).
Under FRs 1, the company is exempt from the requirement to prepare a cash flow statement on the grounds 
that its consolidated financial statements, which include the company, are publicly available.
The principal accounting policies adopted are set out below.
iNVestmeNts
investments in Group undertakings are included in the balance sheet at cost less any provision for impairment.
tAXA tioN 
The charge for taxation is based on the result for the year and takes into account taxation deferred because  
of timing differences between the treatment of certain items for taxation and accounting purposes.
Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment  
of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet 
date, except as otherwise required by FRs 19.
DiViDeNDs 
Dividends are recorded in the company’s financial statements in the period in which they are paid. 
2. st Aff NumBers AND Costs
The company has no employees.
3. DiViDeNDs
Details of the dividends recognised as distributions to equity shareholders in the period and those proposed 
after the balance sheet date are as shown in note 7 of the consolidated financial statements.
4. fiXeD Asset iNVestmeNts
 2012
 £000
 2011
 £000
shares in and loans to subsidiary undertakings
At start and end of year - -
The subsidiary undertakings that are significant to the Group and traded during the period are shown in note 10 
of the consolidated financial statements.
Notes to the Comp ANy 
fiNANCiAl st AtemeNts
 
For year ended 31
st 
october 2012
Financials Welcome Business Review Governance 88  DiREc ToRs’ REPoRT & A ccoUnTs 2012
5. DeBtors
 
2012
 £000
 2011
 £000 Amounts falling due within one year:
Amounts due from Group undertakings 301,088 254,144
6. shAre C Apit Al
Shares issued 
Number
Nominal Value 
pence
Share capital 
£
Share 
premium 
account 
£
A shares 70,000 0.0001 7 -
Deferred shares 18,000 0.005 90 -
B shares 1,300 0.0001 - -
c shares 6,957 100 6,957 243,043
D shares 25,000 0.0001 1 29,999
ordinary shares 10,000,000 100 10,000,000 240,000,000
As at 31
st 
october 2011 10,121,257 10,007,055 240,273,042
B shares allotted in the year 4,450 0.0001 - -
D shares allotted in the year 5,000 0.0001 - -
A shares purchased and cancelled in the year (5,000) 0.0001 - -
D shares purchased and cancelled in the year (1,875) 0.0001 - -
As at 31
st 
October 2012 10,123,832 10,007,055 240,273,042
shAres purChAseD AND CANCelleD iN the yeAr
During the year the company purchased and cancelled D and A shares for £17,357 in cash. 
Date Share type Number of shares Nominal value Purchase price % of total capital
July 2012 D 1,875 £0.19 £0.00 0.02%
July 2012 A 5,000 £0.50 £17,357 0.05%
During the year 4,450 B shares and 5,000 D shares were allotted at par to certain members of management 
pursuant to a share scheme.
The classes of share in issue at 31
st
 october 2012 hold the following rights:
A shares and D shares
The shares do not confer voting rights and only confer limited dividend and capital distribution rights.  
They do not confer any rights of redemption.
Deferred and B shares
The shares do not confer voting or dividend rights and only confer limited capital distribution rights.  
They do not confer any rights of redemption.
C shares and ordinary shares
The shares confer voting, dividend and capital distribution (including on winding up) rights.  
They do not confer any rights of redemption.
Financials Welcome Business Review Governance 89  DiREc ToRs’ REPoRT & A ccoUnTs 2012
7. reCoNCiliA tioN of shAreholDers’ fuNDs 
Share capital
£000
Share 
premium
£000
Profit and Loss 
account
£000
Total
£000
At 31
st 
october 2011 10,007 240,273 4,144 254,424
Profit for the year - - 46,657 46,657
share based payments - - 24 24
shares purchased in year - - (17) (17)
At 31
st 
October 2012 10,007 240,273 50,808 301,088
8. CoNtiNgeNt liABilities
There are performance bonds and other arrangements, including those in respect of joint venture partners, 
undertaken in the ordinary course of business from which it is anticipated that no material liabilities will arise.
in addition, the company is required from time to time to act as surety for the performance by subsidiary 
undertakings of contracts entered into in the normal course of their business.
Under the terms of the bank facilities, each company within the Group is a guarantor of the bank facilities  
of other Group members that have acceded to the senior facilities agreement.
9. relA teD pArties
The company is exempt from disclosing transactions with wholly owned subsidiaries in the Group. other 
related party transactions are included within those given in note 26 of the Group financial statements.
10. ul timA te CoNtrolliNg pArty 
The ultimate controlling party of the Group is Varde Partners, inc. by virtue of their control of 60%  
of the ordinary share capital of crest nicholson Holdings Limited.
Financials Welcome Business Review Governance Crest Nicholson
crest House
Pyrcroft Road
chertsey
surrey
KT16 9Gn
Tel: 01932 580 555
Fax: 0870 336 3990
crestnicholson.com
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