Stephen Stone buys shares in troubled housebuilder as takeover speculation mounts
Crest Nicholson鈥檚 executive chairman Stephen Stone has splashed out more than 拢450,000 on shares in the embattled housebuilder amid speculation the firm could be a bid target.
Stone鈥檚 move to buy 150,000 shares at 拢3.03 comes less than a week after Crest admitted that pre-tax profit for the year to the end of October 2018 would now be between 拢170m to 拢190m, instead of the 拢205m it forecast in June when it unveiled its interim figures, citing a tough market in London and the south east.
And press reports have suggested the UK鈥檚 8th largest housebuilder, whose shares have nearly halved in value in the past 12 months, could be the subject of takeover interest.
Alastair Gunn, an equities fund manager at Jupiter Asset Management which owns nearly 3% of Crest鈥檚 stock, told the Telegraph that a 鈥渘umber of players鈥� in the industry could cast their eye over the firm, which offered a 鈥渂ig opportunity鈥� for anyone looking to boost their presence in the capital.
Announcing the expected dip in annual profit last week Crest also revealed the departure of finance chief Robert Allen, who only joined the firm last year.
Stone had been expected to hand over the day-to-day running of the company to chief executive Patrick Bergin in April next year, but is holding onto the reins while it puts in place its new strategy, which Crest said was aimed at 鈥減rioritising cashflow and dividends, maximising value in the land and development portfolio and improving operational efficiencies鈥�.
Tony Williams of analysis firm 好色先生TV Value said Crest had a good land bank but currently 鈥渢oo many bets in London鈥�.
鈥淐rest has been badly managed, but it still has a reasonably good name. It鈥檚 a potentially good time to do it, but there鈥檚 a lot of uncertainty in the market, which could affect any offers being made,鈥� he added.
A spokesperson for Crest said chairman Stephen Stone was on track to deliver the firm鈥檚 strategy and believed in the long term future of the business, and added that one of the group鈥檚 larger investors, Woodford Asset Management, had recently upped its stake to 15%.
Shares in Crest Nicholson were trading at 308p this morning, up more than 5% on Friday鈥檚 close.
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