Crest Nicholson Holdings
plc
(the "Group" or "Crest
Nicholson")
FY24 in line with
guidance
Crest Nicholson today provides an
update on trading for the year ending 31 October 2024.
Martyn
Clark, CEO commented:
'Since
joining Crest Nicholson, I have focused on reviewing our strategy,
engaging with employees, and visiting our sites, all of which have
reaffirmed my view that the Group has the potential to be a
best-in-class housebuilder. From our excellent land portfolio, our
dedicated and talented team, to our strong brand, Crest Nicholson
has what it takes to offer an outstanding proposition to our
customers and in doing so create value for shareholders.
FY24 has
presented challenges due to both internal and external factors,
with private open market sales volumes continuing to be impacted by
ongoing affordability concerns.
FY25
will be a year of transition for Crest Nicholson. We are
well-positioned with sufficient land with full planning permission
to support our planned outlets and volumes. We will focus more on
private sales and prioritise value over volume to enhance returns
and margins.
Since my
arrival, we have started implementing numerous operational changes
and enhancements to drive the business forward, as evidenced by the
stronger cash performance we delivered for the full year. As we
execute on many of the near term operational improvements, we will
also look to further strengthen the business for the future, where
we will focus on three areas in particular: optimising value from
our high-quality land portfolio; building homes of exceptional
quality efficiently; and, delivering outstanding service to
customers.
Encouragingly, the broader economic landscape is becoming more
favourable, with a more benign interest rate environment and
increased government support to improve the planning process to
deliver their ambition of increasing supply of much needed homes in
the UK.
I look
forward to updating the market at the Group's FY24 preliminary
results on 21 January 2025, and in Q1 2025 on our strategic
priorities and initiatives to maximise value for all Crest
Nicholson stakeholders.'
FY24
trading
· FY24
volume 1,873 units, with c.45% of affordable and PRS
units
· FY24
open market sales rate at 0.48 (FY23: 0.52), with the sales rate
for the last 10 weeks of the financial year at 0.53
· Adjusted Profit Before Tax (APBT) expected to be at the lower
end of the guidance range of £22m - £29m, due to a higher
proportion of both affordable homes delivered in the year and as we
continue to trade out of low margin sites
· Enhanced focus on improvements in cash management delivered
better than expected year end net debt at £8.5m
· Year-end land creditors at c.£100m, (FY23: £205.5m)
· The
Group has extended its £250m Revolving Credit Facility by 12 months
to October 2027
Operational update
· During
the year we selectively made land investments in appropriately
scaled sites, delivering 1,158 plots to ensure a good land
pipeline. Land acquired in previous years is progressing well
through the planning process
· Practical build completion was achieved at Farnham in
September. The majority of residential units are now occupied with
less than 20% of remaining apartments to sell through
· Limited build cost inflation with stable materials costs and
modest labour wage growth. Self-help initiatives are under way to
drive better cost performance
· The
Group has continued to drive higher levels of customer satisfaction
and has consistently achieved five star scores throughout
2024
·
Our newly centralised specialist team has made
good progress in both fire remediation and assessing buildings
under the scope of the Self Remediation Terms.
For
further information, please contact:
Crest Nicholson
Jenny Matthews, Head of Investor
Relations
+44 (0) 7557 842720
Teneo
James Macey White / Giles Kernick
+44 (0) 207 260 2700
The person responsible for arranging
the release of this announcement on behalf of the Company
is
Penny Thomas, Group Company
Secretary
20 November 2024
