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Highlights
- FY24 Volumes: Delivered 1,873 units, with 45% affordable and PRS housing.
- Financial Metrics: Adjusted profit before tax expected at the lower end of £22m–£29m; net debt reduced to £8.5m.
- Operational Strength: Achieved five-star customer satisfaction and stable build costs.
Crest Nicholson (LSE:CRST), a leading UK housebuilder, has provided its trading and operational update for the financial year ending October 31, 2024. The company navigated a challenging housing market while demonstrating resilience in operational efficiency and customer satisfaction.
Trading Performance
The group delivered 1,873 housing units in FY24, with around 45% of these comprising affordable and private rented sector (PRS) homes. Open market sales rates stood at 0.48 per week for the year, slightly below the 0.52 recorded in FY23. However, sales momentum picked up in the final 10 weeks of the financial year, with a sales rate of 0.53 per week.
Crest Nicholson projects its adjusted profit before tax (APBT) to land at the lower end of the guidance range (£22m–£29m), attributed to a higher proportion of affordable home deliveries and the completion of low-margin sites.
Despite these challenges, improved cash management resulted in net debt of £8.5m, significantly better than expectations. Additionally, land creditor obligations were reduced to approximately £100m from £205.5m in FY23. The group also secured the extension of its £250m revolving credit facility until October 2027, bolstering its financial stability.
Operational Update
Crest Nicholson maintained disciplined operations throughout FY24, with several notable achievements:
- Land Investments: The company acquired 1,158 plots on carefully selected sites to strengthen its future land pipeline. Sites acquired in previous years are advancing smoothly through the planning process.
- Build Completions: Key projects progressed well, including the Farnham development, where over 80% of residential units are now sold and occupied.
- Cost Management: Build cost inflation remained limited, with material costs stabilizing and labour wages seeing modest growth. Internal initiatives have been launched to enhance cost efficiencies further.
- Customer Satisfaction: Consistently achieving five-star satisfaction ratings throughout 2024 underscores the company’s commitment to quality and service.
- Fire Remediation Progress: A centralized specialist team has made strides in fire safety measures, focusing on remediation efforts in compliance with Self Remediation Terms.
Crest Nicholson continues to adapt to market conditions while prioritizing long-term strategic goals.
