REG - Crest Nicholson Hdgs - FY24 in line with guidance

Crest Nicholson HoldingsAnnouncement

20/11/2024 07:00

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RNS Number : 8656M  Crest Nicholson Holdings PLC  20 November 2024

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

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