REG - Crest Nicholson Hdgs - AGM Statement

Crest Nicholson HoldingsAnnouncement

22/03/2022 07:16

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RNS Number : 5240F  Crest Nicholson Holdings PLC  22 March 2022

Crest Nicholson Holdings plc

 (the 'Group' or 'Crest Nicholson')

 

STRONG TRADING PERFORMANCE

EXPANSION PLANS ON TRACK

Crest Nicholson Holdings plc is holding its Annual General Meeting ('AGM') at
10:00 a.m. today. This trading update is for the period from 1 November 2021
to 21 March 2022. The Company's FY22 year end is on 31 October 2022.

Trading update

The Group has delivered a strong trading performance since the start of the
financial year. Housing market conditions remain favourable and we continue to
see good demand for our homes. Our private SPOW(1) rate in the last eight
weeks was 0.98, reflecting strong sales momentum continuing since our reported
FY21 sales rate of 0.80.

As of 18 March 2022, our order book is over 84% covered for FY22 revenue, up
from 63% as reported at our preliminary results in January. This represents a
strong forward order position, providing good visibility and confidence in
meeting our revenue targets for the current financial year. Input cost
inflation is likely to increase because of rising energy costs and raw
material supply disruption caused by the tragic conflict in Ukraine and is
already starting to be seen. However, as illustrated during the COVID-19
pandemic, the Group has demonstrated its effectiveness at managing its supply
chain in turbulent times. In addition, we are also currently managing to
successfully offset cost increases through sales price inflation.

Our expansion plans are progressing well. Having appointed the business leader
for our new Yorkshire division we have also moved into our office in Leeds. We
are now focused on establishing the new team who are actively pursuing several
land opportunities. We have also identified a business leader for our East
Anglia division who is expected to join in June 2022. An office location has
been identified and we expect to be operational in this region in the second
half of 2022.

We continue to make good progress against our existing sustainability targets
and are on track to announce our science-based targets before our half year
results in June 2022.

The Group continues to review and remediate legacy buildings in accordance
with the operational and financial guidance provided at our preliminary
results in January 2022. The Group is also actively participating in the
present and ongoing dialogue with the Government on this subject, via the HBF,
and will provide an update on the outcome of any discussions as soon as it
appropriate to do so.

The current macro and geopolitical uncertainties will clearly present fresh
challenges for housebuilders to navigate. However, the Board remains confident
about Crest Nicholson's medium-term prospects.  Demand for housing continues
to outstrip supply and Crest Nicholson has a clear growth strategy in place to
capitalise on these market conditions. Our operating model is highly efficient
and is supported by a strong balance sheet, which will underpin growth in
future earnings and provides resilience in times of uncertainty.

The Group expects to announce its half year results for the six months ending
30 April 2022 on 14 June 2022.

AGM meeting

The Group will be holding its AGM today at 10:00 a.m. at the Group's office:
Crest House, Pyrcroft Road, Chertsey, Surrey KT16 9GN.

1.Sales per outlet per week

 

For further information, please contact:

 Crest Nicholson

 Jenny Matthews, Head of Investor Relations   +44 (0) 7557 842720

 Tulchan Communications

 James Macey White / Giles Kernick            +44 (0) 20 7353 4200

 

22 March 2022

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