REG - Crest Nicholson Hdgs - Half-year Report
12/06/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250612:nRSL4813Ma&default-theme=true
RNS Number : 4813M Crest Nicholson Holdings PLC 12 June 2025
CREST NICHOLSON HOLDINGS PLC
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 APRIL 2025
Trading in line with expectations
Strong strategic progress and early operational improvements in the half
Full year guidance confirmed
Crest Nicholson Holdings plc ('Crest Nicholson' or 'the Group') today
announces its interim results for the six months ended 30 April 2025.
Martyn Clark, CEO commented:
"I am pleased to report that Crest Nicholson has delivered trading in line
with expectations in the first half and is on track to meet its FY25 guidance.
We have made good early progress against each of the four key strategic
priorities set out at our Capital Markets Day. Our focus on building
exceptional quality homes efficiently has been recognised with our build teams
receiving four nominations for the annual Premier Guarantee Excellence Awards,
more than any other national developer. Our reinvigorated approach to putting
the customer at the heart of all we do and delivering an outstanding customer
experience is reflected in our regaining the HBF's 5-star customer service
rating and we are on-track to maintain the rating for the current assessment
year. Our commitment to operational and commercial excellence has underpinned
the better sales rates we have delivered, with a notable increase in sales
rates since January, which are now more in line with industry standards. It is
also visible in the improvement we are starting to see in achieved prices as
our sales transformation becomes embedded. We have delivered improved gross
profit and margin with a notable reduction in completed sites charges and NRV
provisions. We have taken swift action to reduce administrative expenses with
the merger of the Midlands and Yorkshire divisions, amongst other initiatives
delivering a 6% adjusted administrative expenses reduction year on year. Our
ongoing focus on working capital management and inventory reduction is
reflected in our net debt position being better than expected, and we continue
to be highly active in exploring ways to optimise the value of our land
portfolio.
"The housing market continues to show signs of stabilisation with an
incrementally easing planning system, improving affordability and strong
support from lenders. Customer appetite for the mid premium segment of the
market, which is characterised by high-quality, well-designed homes in
sought-after locations, and which is our focus segment remains robust. This
places Crest Nicholson in a strong position to navigate the market with
confidence and clarity of purpose, as we progress towards the delivery of our
FY29 targets and with it, attractive and sustained value creation."
HY25 results summary
£m (unless otherwise stated) HY25 HY24(4)
Adjusted basis(1)
Gross margin % 14.2% 12.0%
Operating profit 11.9 6.2
Operating profit margin % 4.8% 2.4%
Profit before tax 7.9 2.6
Basic earnings per share (pence) 2.2 0.7
Statutory basis
Revenue 249.5 257.5
Operating profit/(loss) 18.8 (24.1)
Operating profit/(loss) margin % 7.5% (9.4%)
Profit/(loss) before tax 9.4 (30.9)
Basic earnings/(loss) per share (pence) 2.6 (9.1)
Other metrics
Home completions (units)(2) 739 788
Net debt(1,3) 71.5 9.4
Dividend per share (pence) 1.3 1.0
1. Adjusted basis represents the HY25 and HY24 statutory figures
adjusted for exceptional items as disclosed in note 5. Adjusted performance
metrics and net debt are non-statutory alternative performance measures (APMs)
used by the Directors to manage the business which they believe should be
shared for a greater understanding of the performance of the Group. The
definitions of these APMs and the reconciliation to the statutory basis are
included below
2. Includes joint venture units at full unit count
3. Net debt is defined as cash and cash equivalents less
interest-bearing loans and borrowings
4. Represented - see note 17 for an explanation of the prior year
representation
Financial highlights
· Home completions were as follows:
HY25 HY24
Open market 435 435
Bulk / PRS 107 177
Affordable 197 176
Total 739 788
· Volume reduction was driven by the Group's new strategy to
increase profitability by focusing on open market homes in the mid premium
segment. Volume totalling a further 112 units from existing PRS contracts will
be fully delivered by the end of FY26
· HY25 open market sales per outlet week at 0.53 (HY24: 0.47) with
significant improvement in sales rate since mid January (0.61) as the early
benefits of improved sales execution are realised
· Average outlets in the half at 40 (HY24: 45)
· Adjusted operating profit increased 92% to £11.9m (HY24: £6.2m)
as a result of lower completed site costs, lower NRV charges and lower
administrative expenses
· £11.8m combustibles recovery recognised in exceptional items
following settlements with third parties in respect of three buildings. Modest
net increase in provision of £2.4m from latest forecast remediation estimates
· Early benefits (£29.9m), from the Group's inventory reduction
programme helped to deliver better than expected net debt at £71.5m (FY24:
£8.5m)
· Significant reduction in HY25 land creditors to £77.8m (FY24:
£131.6m)
Strategic and operational highlights
Strong initial progress against each of our four strategic priorities:
· Our build teams have been recognised with four nominations for
the annual Premier Guarantee Excellence Awards, more than any other national
developer
· The Group regained its 5-star customer service rating from the
HBF and is on track to maintain the rating for the current assessment year
· Good early progress in delivering initiatives to re-position the
group in the mid premium segment:
o Training and upskilling of sales and build teams
o Launch of online sales extras portal "Arteva" to drive value and customer
satisfaction
o Midlands and Yorkshire regions merged
o Commencement of administrative expenses reduction programme with early
benefits delivered in the half
o Rolling out mid premium positioning to all colleagues
o Ongoing improvement in management information to drive better decision
making
· Over 50% of our strategic land is now either allocated or in
draft allocation status
· Active exploration for value realisation of non-core sites
· The Group continues to make good progress completing its
assessment programme within the scope of the Developer Remediation Contract.
At the end of May 2025, the Group has completed 279 external wall assessments
and 270 internal assessments on the 293 buildings in scope and remains on
track to meet all its commitments in the Joint Plan to accelerate
developer-led remediation
Current trading and outlook
Trading in the first half of the financial year was in line with expectations
with a stronger than anticipated balance sheet position at the period end.
Sales have continued to progress in line with expectations in the first few
weeks of the second half of the financial year. Forward orders for FY25 as at
the end of May 2025 total 763 units. We expect to deliver further improvements
in performance in the second half as the actions undertaken in the early
phases of the transformation plan are embedded across the business. We remain
mindful of volatility in the macroeconomic backdrop, which continues to impact
consumers through concerns around affordability and job security. However, the
market is now starting to benefit from increased lender support and better
mortgage affordability as the interest rate environment starts to ease.
Overall, we are not experiencing any meaningful build cost inflationary
pressures, either on the labour or material side and we continue to reinforce
operational disciplines to reduce abortive costs. Planning reforms continue to
move slowly but positively. As such, we anticipate further stabilisation in
the trading environment in the second half of the year.
Guidance
Guidance for the year remains unchanged:
Open market units 1,050 - 1,150
Bulk and affordable units 650 - 750
Outlets 40 - 42
Sales rate 0.5 - 0.6
Adjusted Profit Before Tax £28m - £38m
Net debt £40m - £90m
Analyst and investor meeting, conference call and webcast
There will be a meeting for analysts at 9.00 am today at Norton Rose
Fulbright, 3 More London Riverside, London SE1 2AQ hosted by Martyn Clark,
Chief Executive Officer and Bill Floydd, Chief Financial Officer. To join the
presentation, please use the following link: Crest Nicholson HY25 results
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.investis-live.com%2Fcrest-nicholson%2F682c7ab9d645df000ef52ba5%2Fbrdd&data=05%7C02%7Cjenny.matthews%40crestnicholson.com%7C0b73ef5680b34bcdc5ff08dd97a2fb06%7Cbdd51e2c3db04b59b17d7c70ac9bdec9%7C0%7C0%7C638833448554480571%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=8kSZC0d9ZLB0ItBqF99WGJkhOQueF%2FCmLURS4AosK2U%3D&reserved=0)
There is also a facility to join the presentation and Q&A session via a
conference call. Participants should dial +44 203 936 2999 and use
confirmation code 090893. A playback facility will be available shortly after
the presentation has finished.
For further information, please contact:
Crest Nicholson
Jenny Matthews, Head of Investor Relations
+44 (0) 7557 842720
Teneo
James Macey White / Ollie Simmonds
+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.
Cautionary statement regarding forward-looking statements
This release may include statements that are, or may be deemed to be,
'forward-looking statements'. These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
'believes', 'estimates', 'plans', 'projects', 'anticipates', 'expects',
'intends', 'may', 'will' or 'should' or, in each case, their negative or other
variations or comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These forward-looking
statements include all matters that are not historical facts. They appear in a
number of places throughout this release and include, but are not limited to,
statements regarding the Group's intentions, beliefs or current expectations
concerning, among other things, the Group's results of operations, financial
position, liquidity, prospects, growth, strategies and expectations of the
industry.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances. Forward-looking
statements are not guarantees of future performance and the development of the
markets and the industry in which the Group operates may differ materially
from those described in, or suggested by, any forward-looking statements
contained in this release. In addition, even if the development of the markets
and the industry in which the Group operates are consistent with the
forward-looking statements contained in this release, those developments may
not be indicative of developments in subsequent periods. A number of factors
could cause developments to differ materially from those expressed or implied
by the forward-looking statements including, without limitation, general
economic and business conditions, industry trends, competition, commodity
prices, changes in law or regulation, changes in its business strategy,
political and economic uncertainty. Save as required by the Listing and
Disclosure Guidance and Transparency Rules, the Company is under no obligation
to update the information contained in this release. Past performance cannot
be relied on as a guide to future performance.
Crest Nicholson Holdings plc
Registered no. 06800600
CEO statement
The Group has made strong early strategic and operational progress in the
first six months of the 2025 financial year. We announced a new strategy at
the Capital Markets Day in March, have delivered results in line with
expectations and are able to confirm the full year guidance we set at the
beginning of the financial year. We have commenced a significant
transformation programme which, alongside the day-to-day requirements of
people's roles, creates an additional burden on many of our people. I would
like to thank all my colleagues for their hard work, enthusiasm and positivity
as we bring about much needed change, at pace to the business. There remains
much to do, but I am pleased with the start we have made.
We have launched a comprehensive transformation programme to drive the
delivery of our new strategy repositioning Crest Nicholson firmly in the mid
premium segment. The programme is built on eight workstreams with 24
prioritised projects, each with defined project charters detailing the
objectives, milestones, risks and resources required. Each workstream is
sponsored by a member of the Executive Committee. Each project is now being
validated in terms of its financial contribution to the overall programme,
timetable and with clear responsibilities set out for delivery.
As we communicated to the market in March, the change that will deliver the
FY29 targets of 2,300 or more completions, gross margin of 20+% and return on
capital employed of 13+% will be delivered through four strategic priorities:
1. Building exceptional quality homes efficiently
Building exceptional homes requires close attention to design, specification,
quality and detail. We have continued to make incremental improvements to our
standard house range that better reflect the standards and expectations of the
mid premium housing segment. I have appointed a new Group Design Director, who
will join the business in Q3, and whose remit will be to make further
improvements to the existing range and then to design a new range of houses
that will provide plotting and design benefits on future developments.
Building right first time is essential to delivering better efficiency and an
improved customer experience. Our build teams are now incentivised on their
own quality metrics and as a result we are seeing a marked reduction in
reportable items. We are rolling out new technology to allow site managers to
spend more time driving safety and quality improvements and less time in the
site office dealing with paperwork. As an early indication of our progress, we
received four national Premier Guarantee nominations, more than any other
national developer, and a fantastic recognition of the hard work and
dedication of our site teams in delivering exceptional quality homes.
2. Delivering outstanding customer experience
It is essential to recognise that we are, at our core, a business offering
customers one of the most significant emotional and financial purchases of
their lives. We have made good progress enhancing our customer service and I
am delighted that we have regained the 5-star HBF customer service rating and
are firmly on-track to maintain the rating for the next assessment year.
Every person in Crest Nicholson is incentivised to deliver better customer
service. Better management information is providing a real focus for our
customer service teams to ensure that they can be more responsive to customer
calls, thereby increasing the number of items that are closed within agreed
timescales. I have appointed a Group Customer Service Director, who joined us
in May, to lead the transformation of customer service, and who will work
closely with our build and sales teams to deliver enhanced customer service at
significantly lower cost.
From a sales perspective, a redesign of our sales suite format, in line with
our brand ambitions, is being rolled out with a more relaxed feel, private
areas for customer interactions, better use of technology and an enhanced
hospitality offering. We have recently launched "Arteva", an online portal
that allows customers to browse an enhanced range of choices and upgrades and
provides our teams with the functionality to order and deliver customer's
choices. In May, we held an in-person sales conference to articulate and embed
the new sales proposition. We will be rolling out similar sessions across the
business in the second half to ensure that all our people understand and buy
into our new brand positioning.
3. Operational and commercial excellence
We have delivered a 6% reduction in adjusted administrative expenses compared
with the first half of FY24 through greater management discipline and some
targeted restructuring. The successful merger of our Midlands and Yorkshire
divisions is already delivering synergies and creating a more cohesive way of
working. We have also defined a clear framework for reviewing divisional and
administrative expenses structures, supporting the roll out of our cost
optimisation programme in the second half of this year and beyond. We are
continuing to develop our management information enabling more effective
reviews and monitoring, and more informed decision-making across the Group.
4. Optimising value of the land portfolio
The UK planning environment has continued to evolve in a more pragmatic and
constructive direction, with the Government's approach encouraging local
authorities to adopt a more practical stance. The reintroduction of housing
targets signals a stronger top-down push and clearly reflects the Government's
support for housebuilding. Encouragingly, we have seen positive momentum in
our own land portfolio, with over 50% of our strategic land now either
allocated or in draft allocation status, providing a healthy land pipeline to
support our future ambitions. The strategic land portfolio benefits from an
embedded discount of over 19%, which will enable us to deliver higher blended
gross margins when this land is developed.
Our short-term land portfolio is well positioned in highly sought-after
locations. We are focused on leveraging these high-quality assets to maximise
value, ensuring that each site is fully optimised. The portfolio offers a
generally well-balanced mix of small and large sites; with a small number of
sites being identified as less aligned with our current strategy, and we
continue to selectively explore options to realise value for these assets.
Other focus areas
Fire remediation
The Group has continued to make good progress with its fire remediation
programme. We now have 293 buildings in scope of the Developer Remediation
Contract and at the end of May have completed 279 external wall and 270
internal assessments. As such the Group is firmly on track to complete all
surveys by the July deadline.
We have made good progress carrying out works with £34.0m spent in the half.
We are constantly re-evaluating the overall cost of works to be performed, the
net result of which is a £2.4m increase in the total cost which equates to
less than 1% of the total expected cost of the programme.
We have also made good progress pursuing third parties and have recovered
£11.8m in the half. Total recoveries now total over £32m. Recoveries are not
recognised until they are virtually certain to be received.
Sustainability
We fully support the Future Homes Hub's Net Zero Transition Plan and continue
to integrate initiatives into the business from design and construction to
supply chain as we continue to make good progress towards achieving our net
zero targets.
Summary and outlook
Whilst the broader global macro-economic backdrop continues to be uncertain,
there are some encouraging signs emerging in the UK housing sector. Real wage
growth and market expectations that interest rates are on a steady downward
path are beginning to improve affordability. The planning environment has
become incrementally more positive, supported by recent Government measures
aimed at boosting housing delivery and easing bottlenecks in the planning
system. These combined factors are contributing to a gradually improving
landscape for the housing market, offering a more supportive backdrop for the
sector. However, we remain a long way from a buoyant market.
Alongside these external factors, our own self-help measures are delivering
promising improvements in key non-financial metrics on quality and customer
service and there are early signs that we can deliver sustained improvement in
both sales rates and achieved values. Operationally, we are showing greater
discipline across the business, and the resulting benefits are beginning to
emerge.
As a result, I am able to reiterate our full year guidance and I remain
confident that with our experienced management team and dedicated workforce,
we are well positioned to benefit as the market improves, reshape the business
for long-term success, deliver on our FY29 guidance and with it ensure
attractive and sustained value creation.
Martyn Clark
Chief Executive Officer
Financial review
Completions, outlets, sales rates, average selling price (ASP) and revenue
Total completions (including joint venture units at full unit count) in the
half were 739 (HY24: 788). The reduction was attributable to bulk completions
which totalled 107 (HY24: 177) as the Group made a deliberate move away from
this market segment to focus more on the mid premium segment that is Crest's
target segment. Open market completions were flat at 435 (HY24: 435).
Affordable completions increased slightly to 197 (HY24: 176).
Average outlets in the half were 40 (HY24: 45). Whilst there has been some
improvement in the progression of planning matters in recent months as a
result of the Government's housing initiatives, we expect new site progression
to remain slow and therefore outlet numbers to stabilise at this level in the
second half of the financial year.
The total weighted ASP for the Group was £342k (HY24: £349k). The reduction
reflected a higher proportion of affordable units in the overall mix. Open
market private ASPs increased modestly to £422k (HY24: £421k).
The open market private sales rate as measured by sales per outlet week was
0.53 (HY24: 0.47). After a slow start to the year, the sales rate improved to
0.61 from mid-January to the end of the half reflecting the commencement of
the spring selling season and early realisation of the benefits of the Group's
sales transformation plan. Key initiatives delivered included the start of a
sales training programme and a new incentive scheme for sales executives.
In line with our strategy of optimising the value of the land portfolio, the
Group completed £16.3m (HY24: £30.8m) of land sales on sites that it
determined it would not have been able to access for several years.
Total revenue for the half was £249.5m (HY24: £257.5m), a reduction of 3.1%.
Gross profit
Adjusted gross profit was £35.4m (HY24: £30.8m), an increase of 14.9%. The
increase in gross profit is substantially reflected by a reduction in
completed site costs and NRV charges.
Gross profit was £44.3m (HY24: £0.5m). The exceptional profit of £8.9m
(HY24: loss of £30.3m) is explained in the exceptional items section of the
financial review.
Gross profit on land sales was £3.8m (HY24: £6.3m). Adjusted gross profit
margin was 14.2% (HY24: 12.0%).
Operating profit and margin
Adjusted operating profit of £11.9m (HY24: £6.2m) was an increase of 91.9%
as a result of the increase in adjusted gross profit. Additionally, adjusted
administrative expenses reduced by 5.6% to £25.5m (HY24: £27.0m). The
operating profit for the half was £18.8m (HY24: loss of £24.1m).
Exceptional items
Exceptional operating profit was £6.9m (HY24: loss of £30.3m). The Group
recovered £11.8m from third parties in respect of defective design and
workmanship offset by a net combustible materials charge of £2.4m arising
from forecast changes in remediation costs, legal fees of £0.5m in respect of
a legal claim against the Group relating to an apartment block built by the
Group which was damaged by fire in 2021 and £2.0m of restructuring costs.
In HY24, the Group undertook a comprehensive review, supported by external
consultants, of the Group's remaining cost obligations on completed sites. The
review of completed site costs resulted in a one-off charge of £31.4m, of
which £25.5m was treated as an exceptional item as it related to non-standard
developments started prior to the change in strategy in 2019. The net
combustible materials charge was £4.5m and legal fees were £0.3m.
The tax charge on exceptional items was £0.4m (HY24: tax credit of £8.4m).
Further detail on exceptional items can be found in note 5 and note 12 of the
condensed consolidated half year financial statements.
Financing and liquidity
At 30 April 2025, the Group had net debt of £71.5m (FY24: £8.5m). Net debt
including land creditors was £149.3m (FY24: £140.1m), an increase of £9.2m.
The Group made further progress in managing its inventory with an overall
reduction of £29.9m from FY24.
The Group's debt facilities include a £250m Revolving Credit Facility, which
expires in October 2027. The Group is also financed by an £85m private
placement, of which £20m is due to be repaid in August 2025, £50m is due for
repayment in August 2027 and £15m in August 2029.
Going concern
The Directors have assessed the Group's going concern position, analysing a
base case and a range of adverse scenarios that are deemed to be Severe But
Plausible (SBP) including aggregates of multiple factors.
The base case scenario utilised rolling forecasts up to 31 October 2026 (the
going concern period) that reflect the Group's current financial position and
the prevailing economic landscape, taking into account that the Group has
already secured a proportion of sales by way of its forward order book. The
SBP downside conditions incorporate potential macroeconomic scenarios which
could be experienced by the UK, industry-wide dynamics and Group specific
risks. The assessment also evaluated the anticipated effectiveness of proposed
mitigating actions that are within the Group's control. The Group achieved all
its banking covenants at the 30 April 2025 test date, with more headroom than
budgeted on the key interest cover covenant ratio. The Group continues to
expect to meet all its covenants in the base case scenario. The cumulative
impact of assumptions and mitigations in the SBP downside case indicate that
the Group would not meet its interest cover covenant at the October 2025
measurement date. The Group maintains good relationships and a regular
dialogue with all its lenders and is confident that an amendment to its
covenants would be secured if necessary, however this is not guaranteed and
therefore this represents a material uncertainty to going concern. In all
scenarios, except where the interest cover covenant is breached and a covenant
amendment is not agreed, the Group forecasts adequate liquidity.
In reviewing the assessment outlined above, and notwithstanding the material
uncertainty related to going concern, the Directors are confident that the
Group has the necessary resources and mitigations available to continue
operations and discharge its obligations as they fall due for at least 12
months from the date of approval of the condensed consolidated half year
financial statements. Accordingly, the condensed consolidated half year
financial statements continue to be prepared on a going concern basis.
However, a material uncertainty exists, in particular with respect to the
ability to achieve the covenant amendments which may be required, which may
cast significant doubt on the Group's ability to continue as a going concern.
This remains consistent with the position at FY24.
Further details can be found in note 1 to the condensed consolidated half year
financial statements.
Taxation
The rate of taxation on profit for the half year ended 30 April 2025 is 28.7%
(HY24: 24.3%).
Earnings per share
Adjusted basic earnings per share was 2.2 pence (HY24: 0.7 pence) reflecting
the Group's improved performance. Basic earnings per share was 2.6 pence
(HY24: loss of 9.1 pence).
Dividend
The Board declared an interim dividend of 1.3 pence per share, payable on 10
October 2025 to shareholders on the register on 19 September 2025.
Prior half year representation
The 2024 half year comparatives have been represented for completed site
costs, other operating income, other operating expenses and administrative
expenses. Where relevant, other disclosures in the notes to the condensed
consolidated half year financial statements have also been represented.
Further details are provided in note 17 to the condensed consolidated half
year financial statements.
Land and planning
At 30 April 2025, the short-term land portfolio comprised 12,908 (HY24:
14,146) plots and the Group's strategic land portfolio totalled 18,461 (HY24:
17,813) plots, resulting in a total land portfolio of 31,369 plots (HY24:
31,959). The total gross development value of the portfolio is estimated at
£11.5bn (HY24: £11.6bn).
The Group has sufficient land with planning consents to meet its requirements
for 2025 and is well progressed in achieving the relevant planning consents to
enable it to meet its development plans for 2026. The Group is undertaking a
thorough review of its land bank beyond 2026 to determine its overall
suitability for the business' medium-term needs and strategy.
Bill Floydd
Chief Financial Officer
Principal Risks and Uncertainties
The Group's financial and operational performance and reputation is subject to
a number of potential risks and uncertainties. These risks could, either
separately or in combination, have a material impact on the Group's
performance and shareholder returns.
Divisional boards consider their divisional risk registers. The divisional
risk reviews, alongside the Group's principal and emerging risks, are
carefully considered by the Executive Committee. Both the Audit and Risk
Committee and the Board have oversight of the Group's emerging and principal
risks.
Since the publication of the Group's Annual Report and financial statements
for the year ended 31 October 2024, the Group has added one new risk to its
register. The new risk is strategic change related to the implementation of
the transformation programme.
Statement of Directors' Responsibilities
The Directors confirm that these condensed consolidated half year financial
statements have been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the United Kingdom
and that the interim management report includes a fair review of the
information required by DTR 4,2,7 and DTR 4,2,8, namely:
· An indication of important events that have occurred during the
first six months and their impact on the condensed consolidated half year
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
· Material related party transactions in the first six months and
any material changes in the related party transactions described in the last
Annual Report and financial statements.
The current Directors of Crest Nicholson Holdings plc are listed in the Annual
Report and financial statements for the year ended 31 October 2024.
By order of the Board
Martyn Clark
Chief Executive Officer
11 June 2025
CONDENSED CONSOLIDATED INCOME STATEMENT
Note Half year ended Half year ended Half year ended Half year ended Half year ended Half year ended Full year ended Full year ended Full year ended
30 April 30 April 30 April 30 April 30 April 30 April 31 October 31 October 31 October
2025 2025 2025 2024 2024 2024 2024 2024 2024
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
Pre-exceptional items Exceptional items (note 5) Total Pre-exceptional items(1) Exceptional items (note 5) Total(1) Pre-exceptional item Exceptional item (note 5) Total
£m £m £m £m £m £m £m £m £m
Revenue 4 249.5 - 249.5 257.5 - 257.5 618.2 - 618.2
Cost of sales (214.1) 8.9 (205.2) (226.7) (30.3) (257.0) (531.4) (158.4) (689.8)
Gross profit/(loss) 35.4 8.9 44.3 30.8 (30.3) 0.5 86.8 (158.4) (71.6)
Other operating income 6 27.9 - 27.9 31.5 - 31.5 75.8 - 75.8
Other operating expenses 6 (25.7) - (25.7) (28.9) - (28.9) (69.9) - (69.9)
Administrative expenses (25.5) (2.0) (27.5) (27.0) - (27.0) (60.8) (1.6) (62.4)
Net impairment losses on financial assets (0.2) - (0.2) (0.2) - (0.2) (0.6) - (0.6)
Operating profit/(loss) 6 11.9 6.9 18.8 6.2 (30.3) (24.1) 31.3 (160.0) (128.7)
Finance income 2.3 - 2.3 2.0 - 2.0 4.0 - 4.0
Finance expense (6.5) (5.1) (11.6) (5.6) (3.2) (8.8) (12.8) (6.1) (18.9)
Net finance expense (4.2) (5.1) (9.3) (3.6) (3.2) (6.8) (8.8) (6.1) (14.9)
Share of post-tax result of joint ventures using the equity method 0.2 (0.3) (0.1) - - - (0.1) - (0.1)
Profit/(loss) before tax 7.9 1.5 9.4 2.6 (33.5) (30.9) 22.4 (166.1) (143.7)
Income tax (expense)/credit 7 (2.3) (0.4) (2.7) (0.9) 8.4 7.5 (8.0) 48.2 40.2
Profit/(loss) for the period attributable to equity shareholders 5.6 1.1 6.7 1.7 (25.1) (23.4) 14.4 (117.9) (103.5)
Earnings/(loss) per ordinary share
Basic 8 2.2p 2.6p 0.7p (9.1)p 5.6p (40.4)p
Diluted 8 2.2p 2.6p 0.7p (9.1)p 5.6p (40.4)p
1 Represented - see note 17 for an explanation of the prior year
representation
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Half year ended Half year ended Full year ended
30 April 30 April 31 October
2025 Unaudited 2024 Unaudited 2024
Audited
£m £m £m
Profit/(loss) for the period attributable to equity shareholders 6.7 (23.4) (103.5)
Other comprehensive income/(expense):
Items that will not be reclassified to the consolidated income statement:
Actuarial (losses)/gains of defined benefit schemes (0.5) (1.5) 8.5
Change in deferred tax on actuarial (losses)/gains of defined benefit schemes 0.1 0.4 (2.1)
Other comprehensive (expense)/income for the period net of income tax (0.4) (1.1) 6.4
Total comprehensive income/(expense) for the period attributable to equity 6.3 (24.5) (97.1)
shareholders
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Half year ended 30 April 2025 (Unaudited) Note Share capital Share premium account Retained earnings Total
£m £m £m £m
Balance at 1 November 2024 12.8 74.2 641.9 728.9
Profit for the period attributable to equity shareholders - - 6.7 6.7
Actuarial losses of defined benefit schemes - - (0.5) (0.5)
Change in deferred tax on actuarial losses of defined benefit schemes - - 0.1 0.1
Total comprehensive income for the period - - 6.3 6.3
Transactions with shareholders:
Equity-settled share-based payments - - 1.0 1.0
Deferred tax on equity-settled share-based payments - - 0.1 0.1
Dividends paid 9 - - (3.1) (3.1)
Balance at 30 April 2025 12.8 74.2 646.2 733.2
Half year ended 30 April 2024 (Unaudited) Note Share capital Share premium account Retained earnings Total
£m £m £m £m
Balance at 1 November 2023 12.8 74.2 769.3 856.3
Loss for the period attributable to equity shareholders - - (23.4) (23.4)
Actuarial losses of defined benefit schemes - - (1.5) (1.5)
Change in deferred tax on actuarial losses of defined benefit schemes - - 0.4 0.4
Total comprehensive expense for the period - - (24.5) (24.5)
Transactions with shareholders:
Equity-settled share-based payments - - 0.7 0.7
Purchase of own shares - - (0.3) (0.3)
Transfers in respect of share options - - 0.4 0.4
Dividends paid 9 - - (29.5) (29.5)
Balance at 30 April 2024 12.8 74.2 716.1 803.1
Year ended 31 October 2024 (Audited) Share capital Share premium account Retained earnings Total
£m £m £m £m
Balance at 31 October 2023 12.8 74.2 769.3 856.3
Loss for the period attributable to equity shareholders - - (103.5) (103.5)
Actuarial gains of defined benefit schemes - - 8.5 8.5
Change in deferred tax on actuarial gains of defined benefit schemes - - (2.1) (2.1)
Total comprehensive expense for the year - - (97.1) (97.1)
Transactions with shareholders:
Equity-settled share-based payments - - 1.8 1.8
Deferred tax on equity-settled share-based payments - - 0.1 0.1
Purchase of own shares - - (0.5) (0.5)
Transfers in respect of share options - - 0.4 0.4
Dividends paid 9 - - (32.1) (32.1)
Balance at 31 October 2024 12.8 74.2 641.9 728.9
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note As at As at As at
30 April 30 April 31 October
2025 2024(1) 2024
Unaudited Unaudited Audited
ASSETS £m £m £m
Non-current assets
Intangible assets 29.0 29.0 29.0
Property, plant and equipment 3.0 2.6 3.2
Right-of-use assets 10.1 7.1 10.9
Investments in joint ventures 8.9 8.3 8.6
Financial assets at fair value through profit and loss 1.7 0.6 2.3
Deferred tax assets 38.5 3.1 39.7
Retirement benefit surplus 19.2 9.3 19.5
Trade and other receivables 11.8 10.7 14.6
122.2 70.7 127.8
Current assets
Inventories 10 1,107.5 1,181.9 1,137.4
Financial assets at fair value through profit and loss 1.4 2.9 1.0
Trade and other receivables 104.7 102.3 98.1
Current income tax receivable 2.2 12.6 4.1
Cash and cash equivalents 11 81.2 88.7 73.8
1,297.0 1,388.4 1,314.4
Total assets 1,419.2 1,459.1 1,442.2
LIABILITIES
Non-current liabilities
Interest-bearing loans and borrowings 11 (63.6) (83.9) (63.2)
Trade and other payables (29.9) (52.9) (42.3)
Lease liabilities (7.5) (5.5) (8.8)
Deferred tax liabilities (4.8) (2.3) (4.9)
Provisions 12 (144.8) (67.3) (192.5)
(250.6) (211.9) (311.7)
Current liabilities
Interest-bearing loans and borrowings 11 (89.1) (14.2) (19.1)
Trade and other payables (231.1) (309.2) (285.2)
Lease liabilities (3.5) (1.8) (3.2)
Provisions 12 (111.7) (118.9) (94.1)
(435.4) (444.1) (401.6)
Total liabilities (686.0) (656.0) (713.3)
Net assets 733.2 803.1 728.9
EQUITY
Share capital 15 12.8 12.8 12.8
Share premium account 15 74.2 74.2 74.2
Retained earnings 646.2 716.1 641.9
Total equity 733.2 803.1 728.9
1 Represented - see note 17 for an explanation of the prior year
representation
Crest Nicholson Holdings plc Registered number 06800600. These condensed
consolidated half year financial statements were approved by the Board of
Directors on 11 June 2025.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Note Half year ended Half year ended Full year ended
30 April 30 April 31 October
2025 2024 2024
Unaudited Unaudited Audited
£m £m £m
Cash flows from operating activities
Profit/(loss) for the period attributable to equity shareholders 6.7 (23.4) (103.5)
Adjustments for:
Depreciation on property, plant and equipment 0.2 0.2 0.4
Depreciation on right-of-use assets 1.1 0.8 2.3
Retirement benefit obligation administrative expenses 0.3 0.3 0.7
Net finance expense 9.3 6.8 14.9
Share-based payment expense 1.0 0.7 1.8
Share of post-tax result of joint ventures using the equity method 0.1 - 0.1
Impairment of inventories movement 10 (2.8) 0.7 2.1
Net impairment of financial assets 0.2 0.2 0.6
Income tax expense/(credit) 2.7 (7.5) (40.2)
Operating profit/(loss) before changes in working capital, provisions and 18.8 (21.2) (120.8)
contribution to retirement benefit obligations
Increase in trade and other receivables (14.1) (2.8) (10.6)
Decrease/(increase) in inventories 32.7 (17.8) 22.2
(Decrease)/increase in trade and other payables, and provisions (104.3) (24.4) 35.6
Contribution to retirement benefit obligations - (0.8) (1.1)
Cash used by operations (66.9) (67.0) (74.7)
Finance expense paid (3.5) (2.8) (5.1)
Income tax received 0.6 7.2 12.0
Net cash outflow from operating activities (69.8) (62.6) (67.8)
Cash flows from investing activities
Purchases of property, plant and equipment - (0.6) (1.4)
Disposal of financial assets at fair value through profit and loss 0.2 0.2 0.2
Dividends received from joint ventures - 2.5 2.5
Funding to joint ventures (13.2) (9.5) (13.1)
Repayment of funding from joint ventures 23.1 25.2 36.4
Finance income received 1.2 1.3 0.4
Net cash inflow from investing activities 11.3 19.1 25.0
Cash flows from financing activities
Principal elements of lease payments (1.0) (1.0) (1.9)
Dividends paid 9 (3.1) (29.5) (32.1)
Net purchase of own shares - 0.1 (0.1)
Proceeds from borrowings 70.0 - 112.0
Repayment of borrowings - - (127.0)
Sale and leaseback proceeds - - 3.1
Net cash inflow/(outflow) from financing activities 65.9 (30.4) (46.0)
Net increase/(decrease) in cash and cash equivalents 7.4 (73.9) (88.8)
Cash and cash equivalents at the beginning of the period 73.8 162.6 162.6
Cash and cash equivalents at end of the period 81.2 88.7 73.8
NOTES TO THE CONDENSED CONSOLIDATED HALF YEAR FINANCIAL STATEMENTS (unaudited)
1 BASIS OF PREPARATION
Crest Nicholson Holdings plc (the Company) is a public limited company
incorporated, listed and domiciled in the UK. The address of the registered
office is 500 Dashwood Lang Road, Bourne Business Park, Addlestone, Surrey
KT15 2HJ. The condensed consolidated half year financial statements
consolidate the results of the Company and its subsidiaries (together referred
to as the Group) and include the Group's interest in joint ventures.
These condensed consolidated half year financial statements for the six months
ended 30 April 2025 have been prepared in accordance with the Disclosure
Guidance and Transparency Rules of the UK Financial Conduct Authority and with
UK-adopted International Accounting Standard 34 'Interim financial reporting'.
These condensed consolidated half year financial statements do not include all
of the information required for full annual consolidated financial statements
and should be read in conjunction with the Group's Annual Report and financial
statements for the year ended 31 October 2024, which has been prepared in
accordance with UK-adopted international accounting standards in conformity
with the requirements of the Companies Act 2006.
These condensed consolidated half year financial statements do not constitute
statutory financial statements within the meaning of Section 434 of the
Companies Act 2006. Statutory financial statements for the year ended 31
October 2024 were approved by the Board of Directors on 3 February 2025 and
delivered to the Registrar of Companies. The report of the auditor on those
accounts was (i) unqualified, (ii) included a reference to a material
uncertainty related to going concern without qualifying their report, and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
These condensed consolidated half year financial statements are unaudited but
have been reviewed by PricewaterhouseCoopers LLP, the Company's auditors in
accordance with International Standard on Review Engagements (UK) 2410 'Review
of Interim Financial Information performed by the Independent Auditor of the
Entity', issued by the Auditing Practices Board. The auditor's review report
for the period to 30 April 2025 is set out below.
Going concern
In determining the appropriateness of the basis of preparation, the Directors
have considered whether the Group can continue to meet its liabilities and
other obligations for the foreseeable future. These include its ability to
meet the financial covenants as required under its sustainability-linked
Revolving Credit Facility (RCF) and senior loan notes as detailed in note 13.
The Directors consider the possibility of breaching one of the three financial
covenants (which are detailed in note 24 of the Group's Annual Report and
financial statements for the year ended 31 October 2024) as being the first
sign that the Group could be in distress and is the basis of its going concern
assessment in this year's condensed consolidated half year financial
statements.
The Directors have assessed the Group's going concern position through to 31
October 2026 (the going concern period), which aligns with its full year
reporting for the 2026 financial year. The going concern model is made up of a
Board approved base case and a Severe But Plausible (SBP) downside. Within the
base case, the Group has already secured a proportion of sales for 2025 by way
of its forward order book. The base case forecast is that the Group maintains
sufficient liquidity headroom throughout the going concern period and will be
compliant from a covenant perspective for all required reporting periods.
The base case has then been used to model a range of adverse scenarios that
are deemed to be plausible downside conditions derived from the scenarios that
are outlined below. These scenarios incorporate potential macroeconomic
scenarios that could be experienced by the UK, industry-wide dynamics and
Group-specific risks.
The SBP downside scenario aggregates the impacts of multiple risk factors. In
conducting this test, the Directors drew on extensive prior experience in
navigating economic downturns, including the COVID-19 pandemic, and considered
the implications of current market conditions. This assessment also evaluates
the anticipated effectiveness of proposed mitigating actions that are within
the Group's control and can be enacted in good time, ensuring a robust
framework for managing potential disruptions and safeguarding the Group's
financial stability.
Risk factors applied against future forecasts
The following risk factors have been applied in reaching the SBP downside
scenario:
· Scenario 1 - Reduction in open market completions volume
Linking to market conditions and solvency and liquidity risk, a potential
decline in macroeconomic conditions in the UK, which negatively impacts the UK
residential property market and reduces the ability for people to buy homes.
The Directors have considered a reduction in average open market completion
volume of 35% from August 2025 to October 2025, 26% from November 2025 to
April 2026 and 18% from May 2026 to October 2026.
· Scenario 2 - Fall in sales price
Also linking to a potential decline in market conditions, a reduction in sales
prices during an economic slowdown and / or lack of available debt finance. A
2.0% reduction in average selling prices from August 2025 to January 2026,
compared to the current market experience of prices increasing.
· Scenario 3 - Trading adjustments
Linking to supply chain risks, unexpected costs occurring on low margin or NRV
sites cause an immediate reduction in profitability of c. £5m in October 2025
and a further £5m in October 2026.
Mitigation options and considerations
The Directors have considered the mitigations that could be applied in a
deteriorating trading environment to either increase operating profit or
conserve cash to reduce interest cost. Some of these measures are implicit
outcomes of a downturn (such as reduction in build spend) rather than
mitigating actions which the Group would have to apply.
The Group has experience of applying such mitigations in the past, which
include but are not limited to:
· A reduction in the Group's headcount driving a reduction in
administrative expenses, site and sales and marketing spend to reflect the
lower build and selling activity in a weaker trading environment;
· Potential renegotiation of some supplier arrangements as the
amount of build activity contracts, and materials suppliers and subcontractors
are required to be more competitive, reducing build spend;
· Mothballing unproductive and/or capital-intensive schemes;
· Reduction or elimination of management incentives;
· A reduction in discretionary land acquisitions and therefore land
expenditure as the Group would require less land to replenish the land
portfolio;
· Disposal of land to generate cash; and
· Removal of dividends after October 2025 to conserve cash.
Conclusion on going concern
Whilst the Group forecasts to meet all its covenants in the base case
scenario, the cumulative impact of the assumptions and mitigations in the SBP
downside case indicates that the Group would not meet its interest cover
covenant at the October 2025 measurement date. If this covenant breach were to
occur, it would constitute an event of default under the terms of the
Revolving Credit Facility agreement and senior loan notes. The Gearing and
Tangible Net Worth covenants are forecast to be met in all reporting periods
in the SBP downside scenario. The Group maintains good relationships and a
regular dialogue with all its lenders and is confident that an amendment to
its covenants would be secured if necessary, however, this is not guaranteed
and therefore this represents a material uncertainty related to going concern.
In all scenarios, except where the interest cover covenant is breached and a
covenant amendment is not agreed, the Group forecasts adequate liquidity.
In reviewing the assessment outlined above, the Directors are confident that
the Group has the necessary resources and mitigations available to continue
operations and discharge its obligations as they fall due for at least 12
months from the date of approval of the condensed consolidated half year
financial statements. Accordingly, the condensed consolidated half year
financial statements continue to be prepared on a going concern basis.
However, a material uncertainty exists, in particular with respect to the
ability to achieve the covenant amendments which may be required, which may
cast significant doubt on the Group's ability to continue as a going concern.
This remains consistent with the position at FY24. The financial statements do
not include any adjustments that would result from the basis of preparation
being inappropriate.
Critical accounting estimates and judgements
The preparation of the condensed consolidated half year financial statements
under UK-adopted international accounting standards requires the Directors to
make estimates and assumptions that affect the application of policies and
reported amounts of assets and liabilities, income and expenses and related
disclosures. In applying the Group's accounting policies, the key judgements
that have a significant impact on the financial statements, including those
involving estimates are described below.
· The judgement to present certain items as exceptional (see note
5)
· The accounting policy relating to the presentation of sales of
part exchange units
· The identification of performance obligations where a revenue
transaction involves the sale of both land and residential units and revenue
on the units is then subsequently recognised over time where the land sale
element takes place at the start of the contract (see note 4 for the split of
revenue recognised at a point in time and recognised over time)
· The recognition of the defined benefit pension scheme net
surplus
· The current and non-current presentation of the combustible
materials provision
· The presentation of completed site liabilities as either accruals
or provisions.
Estimates and associated assumptions affecting the financial statements are
based on historical experience and various other factors that are believed to
be reasonable under the circumstances. The estimates and underlying
assumptions are reviewed on an ongoing basis. Changes in accounting estimates
may be necessary if there are changes in the circumstances on which the
estimate was based or as a result of new information.
Revisions to accounting estimates are recognised in the year in which the
estimate is revised if the revision affects only that year, or in the year of
revision and future years if the revision affects both current and future
years.
The Directors have made estimates and assumptions in reviewing the going
concern assumption as detailed above. The Directors consider the key sources
of estimation uncertainty that have a risk of causing a material adjustment to
the carrying value of assets and liabilities are the carrying value of
inventories, estimation of development profitability, estimation of future
costs associated with completed sites, valuation of the pension scheme assets
and liabilities and the valuation of the combustible materials provision.
These are detailed within the Group's consolidated financial statements for
the year ended 31 October 2024.
Accounting policies
The principal accounting policies adopted in the condensed consolidated half
year financial statements are consistent with those applied by the Group in
its consolidated financial statements for the year ended 31 October 2024
except in respect of taxation and the prior period representation as disclosed
in note 17. Taxation is based on the expected effective tax rate that would be
applicable to expected annual earnings. In the prior half year the group
applied the actual tax rate due to the volatility in the Group's result due to
the significant exceptional charge in that period. No adjustments have been
made to prior period comparatives.
Adoption of new and revised standards
There are no new standards, amendments to standards and interpretations that
are applicable to the Group and are mandatory for the first time for the
financial year beginning 1 November 2024 which have a material impact on the
Group.
Alternative performance measures
The Group has adopted various Alternative Performance Measures (APM), as
presented below. These measures are not defined by IFRS and therefore may not
be directly comparable with other companies' APM, and should be considered in
addition to, and are not intended to be a substitute for, or superior to, IFRS
measurements.
2 SEGMENTAL REPORTING
The Executive Committee (ExCo) is accountable to the Board and has been
identified as the chief operating decision-maker for the purposes of
determining the Group's operating segments. The ExCo approves investment
decisions, allocates group resources and performs divisional performance
reviews. The Group operating segments are considered to be its divisions, each
of which has its own management board. All divisions are engaged in
residential-led, mixed-use developments in the United Kingdom and therefore
with consideration of relevant economic indicators such as the nature of the
products sold and customer base, and, having regard to the aggregation
criteria in IFRS 8, the Group identifies that it has one reportable operating
segment.
3 SEASONALITY
In common with the rest of the UK housebuilding industry, activity occurs
throughout the year, with peaks in sale completions in spring and autumn. This
creates seasonality in the Group's trading results and working capital.
4 REVENUE
Half year ended Half year ended Full year ended
30 April 30 April 31 October
2025 2024 2024
Revenue type £m £m £m
Open market housing including specification upgrades 201.2 197.7 493.5
Affordable housing 32.0 29.0 79.0
Total housing 233.2 226.7 572.5
Land and commercial sales 16.3 30.8 45.7
Total revenue 249.5 257.5 618.2
Half year ended Half year ended Full year ended
30 April 30 April 31 October
2025 2024 2024
Timing of revenue recognition £m £m £m
Revenue recognised at a point in time 205.2 223.4 525.0
Revenue recognised over time 44.3 34.1 93.2
Total revenue 249.5 257.5 618.2
5 EXCEPTIONAL ITEMS
Exceptional items are those which, in the opinion of the Directors, are
material by size and/or non-recurring in nature such as significant costs and
settlements associated with combustible materials, significant legal matters,
changes in estimate of costs associated with completed sites which are no
longer part of the core strategy, significant costs associated with corporate
bid approaches, the write down of freehold inventories and restructuring
related expenses. Where appropriate, the Directors consider that items should
be considered as categories or classes of items, such as any credits/costs
impacting the consolidated income statement which relate to combustible
materials or certain site costs, notwithstanding where an item may be
individually immaterial. The Directors believe that these items require
separate disclosure within the consolidated income statement in order to
assist the users of the condensed consolidated half year financial statements
to better understand the performance of the Group, which is also how the
Directors and chief operating decision maker internally manage the business.
Additional charges/credits (including reversals) to items classified as
exceptional items in prior years will be classified as exceptional in the
current year, unless immaterial to the condensed consolidated half year
financial statements. As these exceptional items can vary significantly year
on year, they may introduce volatility into the reported earnings. The income
tax impacts of exceptional items are reflected at the actual tax rate related
to these items.
Half year ended Half year ended Full year ended
30 April 30 April 31 October
2025 2024 2024
Cost of sales £m £m £m
Combustible materials net charge (2.4) (8.9) (131.7)
Combustible materials recovery 11.8 4.4 4.4
Net combustible materials recovery/(charge) 9.4 (4.5) (127.3)
Legal provision and professional fees (0.5) (0.3) (0.4)
Completed site costs - (25.5) (25.0)
Freehold inventories write off - - (5.7)
Total cost of sales credit/(charge) 8.9 (30.3) (158.4)
Administrative expenses
Aborted transaction costs - - (1.6)
Restructuring related expenses (2.0) - -
Net finance expense
Combustible materials imputed interest (5.1) (3.2) (6.1)
Share of post-tax loss of joint ventures
Combustible materials charge of joint ventures (0.3) - -
Total exceptional credit/(charge) 1.5 (33.5) (166.1)
Tax (charge)/credit on exceptional credit/(charge) (0.4) 8.4 48.2
Total exceptional credit/(charge) after tax (charge)/credit 1.1 (25.1) (117.9)
Net combustible materials charge
In 2023, as a consequence of signing the Developer Remediation Contract on 13
March 2023, the Group entered into contractual commitments with the UK
Government to identify and remediate those buildings it has developed with
possible life-critical fire safety defects. The combustible materials charge
represents forecast changes in build costs, costs of remediating buildings
surveyed in the year, an estimate of costs for non-surveyed buildings that are
forecast to require remediation and changes in the provision discount. In the
period the Group contractually agreed a recovery of £11.8m from third parties
in respect of defective design and workmanship. Recoveries are not recognised
until they are virtually certain to be received. See note 12 for further
information.
Completed site costs
During the first half of the prior financial year, the Group became aware of
certain build defects initially identified on four sites that were complex
developments started prior to 2019 which are no longer part of the core
strategy. Following a thorough review of all completed sites in association
with third-party consultants a one-off exceptional charge of £25.0m was
booked.
Freehold inventories write off
During the prior year the Group provided £5.7m to write off the value of its
remaining freehold reversionary interests in buildings previously constructed
by the Group.
Aborted transaction costs
During the prior year the Group received an unsolicited bid from Bellway plc.
On 13 August 2024 Bellway plc withdrew from the acquisition and the Group
recognised £1.6m of costs associated with this aborted transaction.
Legal provision and professional fees
The Group is subject to a legal claim relating to a low-rise bespoke apartment
block built by the Group which was damaged by fire in 2021. The Group has
incurred professional fees in the period in relation to the claim. In 2023 the
Group recognised its estimate of the potential liability, which remains the
Group's best estimate. See note 12 for further information.
Restructuring related expenses
The Group has commenced a business transformation programme to deliver the
benefits of its new strategy as set out in its Capitals Markets Day on 20
March 2025. The costs of implementing the new strategy are considered to be
one off in nature, material, and not part of the day to day operations of the
Group. These costs include redundancy costs and third party advisory fees.
Net finance expense
The combustible materials imputed interest reflects the unwind of the imputed
interest on the provision to reflect the time value of the liability.
Share of post-tax loss of joint ventures
The combustible materials charge of joint ventures represents the Group's
share of additional exceptional combustibles materials charge in its joint
venture Crest Nicholson Bioregional Quintain LLP.
Taxation
An exceptional income tax charge of £0.4m (30 April 2024: tax credit of
£8.4m, 31 October 2024: tax credit of £48.2m) has been recognised in
relation to the above exceptional items using the actual tax rate applicable
to these items.
6 OPERATING PROFIT/(LOSS)
Operating profit of £18.8m (30 April 2024: operating loss of £24.1m, 31
October 2024: operating loss of £128.7m) is stated after
crediting/(charging):
(a) Other operating income
Half year ended Half year ended Full year ended
30 April 30 April 31 October
2025 2024 2024
£m £m £m
Proceeds on disposal of part exchange properties 25.4 28.3 68.8
Rental income 1.1 1.7 3.4
Joint venture and other management fee income 1.4 1.5 3.6
27.9 31.5 75.8
In the prior half year rental income was included within cost of sales and
joint venture and other management fee income was included within
administrative expenses. Part exchange income was previously presented within
net administrative expenses. See note 17 for further information.
(b) Other operating expense
Half year ended Half year ended Full year ended
30 April 30 April 31 October
2025 2024 2024
£m £m £m
Costs associated with disposal of part exchange properties (25.7) (28.9) (69.9)
In the prior half year this was included within net administrative expenses.
See note 17 for further information.
7 TAXATION
The rate of taxation on profit for the half year ended 30 April 2025 is 28.7%
(30 April 2024: 24.3%, 31 October 2024: 28.0%) and reflects the best estimate
of the weighted average annual effective tax rate which is expected to apply
to the Group for the year ending 31 October 2025. This calculation uses rates
substantively enacted by 30 April 2025 as required by IAS 34 'Interim
Financial Reporting'.
8 EARNINGS/(LOSS) PER ORDINARY SHARE
Basic earnings/(loss) per share is calculated by dividing earnings/(loss)
attributable to equity shareholders by the weighted average number of ordinary
shares in issue during the period. For diluted earnings per share, the
weighted average number of shares is increased by the average number of
potential ordinary shares held under option during the period. This reflects
the number of ordinary shares which would be purchased using the difference in
value between the market value of shares and the share option exercise price.
The market value of shares has been calculated using the average ordinary
share price during the period. Only share options which have met their
cumulative performance criteria have been included in the dilution
calculation. The earnings/(loss) and weighted average number of shares used in
the calculations are set out below.
Earnings/ Weighted Per
(loss) average share
number of amount
shares
£m Millions pence
Half year ended 30 April 2025 - Total
Basic earnings per share 6.7 256.4 2.6
Effect of share options - 0.9
Diluted earnings per share 6.7 257.3 2.6
Half year ended 30 April 2025 - Pre-exceptional items
Basic earnings per share 5.6 256.4 2.2
Effect of share options - 0.9
Adjusted diluted earnings per share 5.6 257.3 2.2
Half year ended 30 April 2024 - Total
Basic loss per share (23.4) 256.4 (9.1)
Effect of share options(1) - -
Diluted loss per share (23.4) 256.4 (9.1)
Half year ended 30 April 2024 - Pre-exceptional items
Basic earnings per share 1.7 256.4 0.7
Effect of share options - 1.1
Adjusted diluted earnings per share 1.7 257.5 0.7
Full year ended 31 October 2024 - Total
Basic loss per share (103.5) 256.4 (40.4)
Dilutive effect of share options(1) - -
Diluted loss per share (103.5) 256.4 (40.4)
Full year ended 31 October 2024 - Pre-exceptional items
Basic earnings per share 14.4 256.4 5.6
Dilutive effect of share options - 1.6
Adjusted diluted earnings per share 14.4 258.0 5.6
(1) Share options are not shown to be dilutive as they cannot further increase
a loss per share.
9 DIVIDENDS
Half year ended Half year ended Full year ended
30 April 30 April 31 October
2025 2024 2024
£m £m £m
Dividends recognised as distributions to equity shareholders in the period:
Final dividend for the year ended 31 October 2024 of 1.2 pence per share 3.1 29.5 29.5
(2023: 11.5 pence per share)
Interim dividend for the year ended 31 October 2024: 1.0 - - 2.6
pence per share (2023: 5.5 pence per share)
3.1 29.5 32.1
The Board approved an interim dividend of 1.3 pence per share on 11 June 2025.
The interim dividend will be paid on 10 October 2025 to ordinary shareholders
on the Register of Members on 19 September 2025. In accordance with IAS 10
'Events After the Reporting Period' the proposed dividend has not been
included as a liability in this condensed consolidated half year financial
information.
10 INVENTORIES
As at As at As at
30 April 30 April 31 October
2025 2024(1) 2024
£m £m £m
Land 627.0 697.5 670.2
Work-in-progress 373.5 333.7 334.1
Completed buildings including show homes 82.0 113.3 102.9
Part exchange inventories 25.0 37.4 30.2
1,107.5 1,181.9 1,137.4
(1) Work-in-progress has been represented to show land and work-in-progress
separately as land represents a major component of inventories and has
different characteristics to other work-in-progress.
Total inventories are stated after a net realisable value provision of £19.5m
(30 April 2024: £20.9m, 31 October 2024: £22.3m), with £1.3m being charged
in the period and £4.1m being used in the period.
Of the £19.5m remaining NRV provision at 30 April 2025 it is currently
forecast that around a third will be used in the second half of FY25, around a
third in FY26 and the balance in FY27.
Movements in the NRV provision As at As at As at
30 April 30 April 31 October
2025 2024 2024
£m £m £m
At beginning of the period 22.3 20.2 20.2
NRV charged in the period 1.3 4.3 14.2
NRV used in the period (4.1) (3.6) (12.1)
Total movement in NRV in the period (2.8) 0.7 2.1
At end of the period 19.5 20.9 22.3
11 CASH AND CASH EQUIVALENTS, INTEREST-BEARING LOANS AND
BORROWINGS
As at As at As at
30 April 30 April 31 October
2025 2024 2024
£m £m £m
Cash and cash equivalents 81.2 88.7 73.8
Non-current interest-bearing loans and borrowings
Senior loan notes - maturing 2026 to 2029 (65.0) (85.0) (65.0)
Revolving credit facility and senior loan notes issue costs 1.4 1.1 1.8
(63.6) (83.9) (63.2)
Current interest-bearing loans and borrowings
Revolving credit facility (70.0) - -
Senior loan notes - £20.0m matures Aug 25 (30 April 2024: £15.0m) (20.0) (15.0) (20.0)
Revolving credit facility and senior loan notes issue costs 0.9 0.8 0.9
(89.1) (14.2) (19.1)
At 30 April 2025, the Group had undrawn revolving credit facilities of
£180.0m (30 April 2024: £250.0m, 31 October 2024: £250.0m). The Group's
revolving credit facility ends in October 2027.
12 PROVISIONS
Combustible materials Legal provision Completed site provisions(1) Joint ventures Other provisions Total
£m £m £m £m £m £m
At 1 November 2024 249.3 13.0 23.6 - 0.7 286.6
Provided in the period 13.5 - - - 0.2 13.7
Released in the period (11.1) - (0.3) - - (11.4)
Utilised in the period (34.0) - (3.5) - - (37.5)
Imputed interest 5.1 - - - - 5.1
At 30 April 2025 222.8 13.0 19.8 - 0.9 256.5
At 1 November 2023 144.8 13.0 9.8 0.9 0.6 169.1
Provided in the period 8.9 - 20.2 - - 29.1
Released in the period - - (2.0) - - (2.0)
Utilised in the period (11.7) - (1.5) - - (13.2)
Imputed interest 3.2 - - - - 3.2
At 30 April 2024 145.2 13.0 26.5 0.9 0.6 186.2
At 1 November 2023 144.8 13.0 9.8 0.9 0.6 169.1
Provided in the year 131.7 - 21.5 - 0.3 153.5
Released in the year - - (3.7) - (0.2) (3.9)
Utilised in the year (33.3) - (4.0) - - (37.3)
Imputed interest 6.1 - - - - 6.1
Funding commitment change - - (0.9) - (0.9)
At 31 October 2024 249.3 13.0 23.6 - 0.7 286.6
At 30 April 2025
Non-current 134.2 - 10.2 - 0.4 144.8
Current 88.6 13.0 9.6 - 0.5 111.7
222.8 13.0 19.8 - 0.9 256.5
At 30 April 2024
Non-current 55.2 - 11.9 - 0.2 67.3
Current 90.0 13.0 14.6 0.9 0.4 118.9
145.2 13.0 26.5 0.9 0.6 186.2
At 31 October 2024
Non-current 181.5 - 10.7 - 0.3 192.5
Current 67.8 13.0 12.9 - 0.4 94.1
249.3 13.0 23.6 - 0.7 286.6
1 Represented - see note 17 for an explanation of the prior year
representation
Combustible materials
In March 2023 the Group signed the DLUHC Developer Remediation Contract in
England, which converted the principles of the building safety pledge signed
in 2022, in which the Group committed to resolve any historical fire remedial
work on buildings completed since 5 April 1992, into a binding agreement
between the Government and the Group. This provides clarity for future
remediation, particularly with regards to the standards required for internal
and external remedial works on legacy buildings.
The combustible materials provision reflects the estimated costs to complete
the remediation of life-critical fire safety issues on identified buildings.
The Directors have used a combination of BSF costed information, other
external information, and internal assessments as a basis for the provision,
which is a best estimate at this time.
The Group is making good progress with its assessment programme for both
external walls and internal fire safety and is working through the 293
buildings within the scope of the Developer Remediation Contract in a
risk-based sequence. At the end of May 2025 the Group has external wall
assessments and internal assessments on 279 and 270 buildings respectively,
each out of the 293 buildings within its scope. The Group has committed to
performing 100% of assessments by July 2025. Due to the quantity and nature of
the projects, the multiple stakeholders involved and the availability of
appropriately qualified and experienced consultants and contractors, we expect
to complete the remedial works within five years.
The Group recorded a further combustible materials charge of £13.5m in the
period which represents net forecast changes in build costs, costs of
remediating buildings surveyed in the period, changes in the estimate of costs
for non-surveyed buildings that are forecast to require remediation and
changes in the provision discount. The Group recorded a £11.1m release of
provision where the cost or scope of works required is lower than that
previously provided for or buildings have been surveyed and do not require
works. The provision is stated after a related discount of £14.8m, which
unwinds to the condensed consolidated income statement as finance expense over
the expected duration of the provision.
The provision of £222.8m represents the Group's best estimate of future costs
on 30 April 2025. The Group will continue to assess the magnitude and
utilisation of this provision in future reporting periods. The Group
recognises that required remediation works could be subject to further
inflationary pressures and cash outflows.
The Group spent £34.0m in the period across several buildings primarily on
remediation works. The Group expects to have completed any required
remediation within a five-year period, using £88.6m of the remaining
provision within one year, which includes £21.6m repayable to the BSF, and
the balance within one to five years. The timing of the expenditure is based
on the Directors best estimates of the timing of remediating buildings and
repaying the BSF incurred costs. Actual timing may differ due to delays in
agreeing scope of works, obtaining licences, tendering works contracts and the
BSF payment schedule differing to our forecast.
The Group is continuing to review the recoverability of costs incurred from
third parties where it has a contractual right of recourse. In the period
£11.8m (30 April 2024 and 31 October 2024: £4.4m) was recovered from third
parties by the Group. Recoveries are not recognised until they are virtually
certain to be received. See note 5 for condensed consolidated income statement
disclosure.
Legal provision
The Group is subject to a legal claim relating to a low-rise bespoke apartment
block built by the Group which was damaged by fire in 2021. The fire caused
extensive damage to the property which was subsequently demolished and is
currently being rebuilt by the freeholder. In 2023 the Group received a letter
of claim alleging fire safety defects and claiming compensation for the
rebuild and other associated costs. The provision recorded represents the
Director's best estimate of the Group's potential exposure taking into account
legal and professional advice. The claim and ultimate route to settlement is
ongoing but the Group currently does not have a set timeline for when the
matter will be concluded.
Completed site provisions
Completed site provisions represent the forecast cost to complete remedial
works on buildings where faults have been identified post completion and the
Group is responsible to remedy. During the period the Group spent £3.5m on
such remedial works.
13 FINANCIAL ASSETS AND LIABILITIES
As at As at As at
30 April 30 April 31 October
2025 2024 2024
Financial assets £m £m £m
Sterling cash deposits 81.2 88.7 73.8
Trade receivables 61.5 69.8 62.2
Amounts due from joint ventures 20.3 23.4 22.6
Other receivables 26.2 9.1 12.5
Total financial assets at amortised cost 189.2 191.0 171.1
Financial assets at fair value through profit and loss 3.1 3.5 3.3
Total financial assets 192.3 194.5 174.4
Financial assets at fair value through profit and loss are held at fair value
and categorised as level three within the hierarchical classification of IFRS
13 'Fair Value Measurement'. The carrying value of cash and cash equivalents,
trade and other receivables and amounts due from joint ventures is a
reasonable approximation of fair value which would be measured under a level 3
hierarchy.
As at As at As at
30 April 30 April 31 October
2025 2024(1) 2024
Financial liabilities £m £m £m
Senior loan notes 85.0 100.0 85.0
Revolving credit facility borrowings 70.0 - -
Land payables on contractual terms carrying no interest 77.8 175.9 131.6
Amounts due to joint ventures 0.1 0.4 0.1
Lease liabilities 11.0 7.3 12.0
Other trade payables 60.8 62.5 67.8
Other payables 2.7 2.9 2.8
Accruals 109.3 105.5 112.4
Total financial liabilities at amortised cost 416.7 454.5 411.7
1 Represented - see note 17 for an explanation of the prior year
representation
The carrying amounts of the Group's financial liabilities is deemed a
reasonable approximation to their fair value.
14 NET DEBT INCLUDING LAND CREDITORS
As at As at As at
30 April 30 April 31 October
2025 2024 2024
£m £m £m
Cash and cash equivalents 81.2 88.7 73.8
Non-current interest-bearing loans and borrowings (63.6) (83.9) (63.2)
Current Interest-bearing loans and borrowings (89.1) (14.2) (19.1)
Net debt (71.5) (9.4) (8.5)
Land payables on contractual terms carrying no interest (77.8) (175.9) (131.6)
Net debt including land creditors (149.3) (185.3) (140.1)
15 SHARE CAPITAL
Shares Nominal Share Share
issued value capital premium
account
number pence £m £m
As at 30 April 2025, 30 April 2024 and 31 October 2024 256,920,539 5 12.8 74.2
16 RELATED PARTY TRANSACTIONS
Transactions between fellow subsidiaries, which are related parties, are
eliminated on consolidation, as well as transactions between the Group and its
subsidiaries during the current and prior period.
There were no transactions between the Group and key management personnel
other than remuneration during the current and prior period.
The Group stopped paying deficit contributions to the Crest Nicholson Group
Pension and Life Assurance Scheme in July 2024 by agreement with the Trustees.
The Company's Directors and Non-Executive Directors have associations other
than with the Company. From time to time the Group may trade with
organisations with which a Director or Non-Executive Director has an
association. Where this occurs, it is on normal commercial terms and without
the direct involvement of the Director or Non-Executive Director.
The Group had the following transactions with its joint ventures in the
period:
Half year ended Half year ended Full year ended
30 April 30 April 31 October
2025 2024 2024
£m £m £m
Interest income on joint venture funding 0.2 0.3 0.7
Project management fees received 0.8 1.2 1.9
Amounts due from joint ventures, net of expected credit losses 20.3 23.4 22.6
Amounts due to joint ventures 0.1 0.4 0.1
Funding to joint ventures (13.2) (4.5) (13.1)
Repayment of funding from joint ventures 23.1 25.2 36.4
Dividends received from joint ventures - 2.5 2.5
17 PRIOR HALF YEAR REPRESENTATION
The half year 2024 comparatives have been represented for completed site
costs, other operating income, other operating expenses and administrative
expenses as detailed below. Where relevant to these changes, other disclosures
in the notes to the condensed consolidated half year financial statements have
also been represented.
Completed site costs
In half year 2024, all costs yet to be incurred on sites where all sales have
been recognised were included within accruals and deferred income. These costs
predominantly relate to the finalisation of infrastructure and amenities
works, which often occur towards the end of the site's life. In certain
instances, accruals have also been made to cover remedial works to remedy
defects and other remediation works identified post completion. This approach
is consistent with industry practice.
The Group reviewed all completed site accruals in the 2024 financial year
after the Group became aware of build defects initially identified on four
sites. In relation to these sites, the Group has a present legal or
constructive obligation as a result of a past event and it is probable that an
outflow of economic benefits will be required to settle the obligation, and
the amount can be reliably estimated. Completed site costs for these sites are
now presented as a provision rather than an accrual.
Accordingly, the 30 April 2024 completed site accruals were reviewed with
£26.5m of balances forecast to cover remedial works (completed site
provisions, which are subject to higher estimation uncertainty) rather than
normal site finalisation costs (completed site accruals). This change in
presentation resulted in the representation of £14.6m current accruals to
current provisions and £11.9m of non-current accruals to non-current
provisions.
Other operating income, other operating expenses and administrative expenses
In the financial year 2024 the Group presented other operating income and
other operating expenses which includes rental income, joint venture and other
management fee income and the income and expenses associated with part
exchange sales. In that year these balances are material and therefore the
prior half year comparatives have been represented to present consistent
information. Previously these balances were not material.
In the previous half year rental income had been included within cost of
sales, being directly related to current and past residential developments and
being immaterial in value. The Group now includes this income within other
operating income and has represented the comparative by moving £1.7m income
from cost of sales to other operating income.
In the previous half year joint venture and other management fee income had
been included within administrative expenses, being related to the employee
costs incurred by the Group in project managing its joint venture businesses.
The Group now includes joint venture management fee income within other
operating income and has represented the comparative by moving £1.5m from
administrative expenses to other operating income.
In the previous half year part exchange income and related expenses had been
included within net administrative expenses and separately presented in the
notes to the accounts as other operating income and other operating expenses
respectively, with the net result on these sales being immaterial. In the
current year due to other income statement representations the Group has
separately disclosed these within the primary statements.
Represented half year ended 30 April 2024 financial information
As previously reported Represented As presented
Condensed consolidated income statement £m £m £m
Pre-exceptional
Cost of sales (225.0) (1.7) (226.7)
Gross profit 32.5 (1.7) 30.8
Other operating income - 31.5 31.5
Other operating expenses - (28.9) (28.9)
Administrative expenses (26.1) (0.9) (27.0)
Total
Cost of sales (255.3) (1.7) (257.0)
Gross profit 2.2 (1.7) 0.5
Other operating income - 31.5 31.5
Other operating expenses - (28.9) (28.9)
Administrative expenses (26.1) (0.9) (27.0)
Condensed consolidated statement of financial position
HY24 Current trade and other payables (323.8) 14.6 (309.2)
HY24 Current provisions (104.3) (14.6) (118.9)
HY24 Non-current trade and other payables (64.8) 11.9 (52.9)
HY24 Non-current provisions (55.4) (11.9) (67.3)
Financial liability accruals 132.0 (26.5) 105.5
Total carrying value of financial liabilities carrying no interest 481.0 (26.5) 454.5
Alternative performance measures (unaudited) £m/% £m/% £m/%
Pre-exceptional
Gross profit 32.5 (1.7) 30.8
Gross profit margin 12.6 (0.6) 12.0
ALTERNATIVE PERFORMANCE MEASURES (UNAUDITED)
The Group uses a number of alternative performance measures (APM) which are
not defined within IFRS. The Directors use the APM, along with IFRS measures,
to assess the operational performance of the Group. Definitions and
reconciliations of the financial APMs used compared to IFRS measures, are
included below:
Adjusted performance metrics
Adjusted performance metrics as shown below comprise statutory metrics
adjusted for the exceptional items as presented in note 5 of the condensed
consolidated half year financial statements. Exceptional items are those
which, in the opinion of the Directors, are material by size and/or
non-recurring in nature. The Directors believe that these items require
separate disclosure within the consolidated income statement in order to
assist the users of the condensed consolidated half year financial statements
to better understand the performance of the Group, which is also how the
Directors internally manage the business. As such, the Directors consider
these adjusted performance metrics reflect a more accurate view of its core
operations and business performance.
Half year ended 30 April 2025 Statutory Exceptional items Adjusted
Gross profit £m 44.3 (8.9) 35.4
Gross profit margin % 17.8 (3.6) 14.2
Administrative expenses £m (27.5) 2.0 (25.5)
Operating profit £m 18.8 (6.9) 11.9
Operating profit margin % 7.5 (2.8) 4.8
Net finance expense £m (9.3) 5.1 (4.2)
Share of post-tax (loss)/profit of joint ventures using the equity method £m (0.1) 0.3 0.2
Profit before tax £m 9.4 (1.5) 7.9
Income tax expense £m (2.7) 0.4 (2.3)
Profit after tax £m 6.7 (1.1) 5.6
Basic earnings per share Pence 2.6 (0.4) 2.2
Diluted earnings per share Pence 2.6 (0.4) 2.2
Half year ended 30 April 2024(1) Statutory Exceptional items Adjusted
Gross profit £m 0.5 30.3 30.8
Gross profit margin % 0.2 11.8 12.0
Operating (loss)/profit £m (24.1) 30.3 6.2
Operating (loss)/profit margin % (9.4) 11.8 2.4
Net finance expense £m (6.8) 3.2 (3.6)
(Loss)/profit before tax £m (30.9) 33.5 2.6
Income tax credit/(expense) £m 7.5 (8.4) (0.9)
(Loss)/profit after tax £m (23.4) 25.1 1.7
Basic (loss)/earnings per share Pence (9.1) 9.8 0.7
Diluted (loss)/earnings per share Pence (9.1) 9.8 0.7
1 Represented - see note 17 for an explanation of the prior year
representation
Full year ended 31 October 2024 Statutory Exceptional items Adjusted
Gross (loss)/profit £m (71.6) 158.4 86.8
Gross (loss)/profit margin % (11.6) 25.6 14.0
Operating (loss)/profit £m (128.7) 160.0 31.3
Operating (loss)/profit margin % (20.8) 25.9 5.1
Net finance expense £m (14.9) 6.1 (8.8)
(Loss)/profit before tax £m (143.7) 166.1 22.4
Income tax credit/(expense) £m 40.2 (48.2) (8.0)
(Loss)/profit after tax £m (103.5) 117.9 14.4
Basic (loss)/earnings per share Pence (40.4) 46.0 5.6
Diluted (loss)/earnings per share Pence (40.4) 46.0 5.6
Net debt
Net debt is cash and cash-equivalents plus non-current and current
interest-bearing loans and borrowings. Net debt illustrates the Group's
overall liquidity position and general financial resilience. Net debt of
£71.5m has increased from £9.4m at 30 April 2024.
As at As at As at
30 April 30 April 31 October
2025 2024 2024
Cash and cash equivalents £m 81.2 88.7 73.8
Non-current and current interest-bearing loans and borrowings £m (152.7) (98.1) (82.3)
Net debt £m (71.5) (9.4) (8.5)
Return on capital employed (ROCE)
Return on capital employed equals rolling 12 month adjusted operating profit
before joint ventures divided by the average of opening and closing capital
employed over the same 12 months (capital employed = equity shareholders'
funds plus net borrowing or less net cash).
Half year ended 30 April 2025 Half year ended 30 April 2024 Full year ended 31 October 2024
Adjusted operating profit - rolling 12 month £m 37.0 28.3 31.3
Average of opening and closing capital employed over same 12 months £m 808.6 811.5 764.4
ROCE % 4.6 3.5 4.1
Half year ended 30 April 2025 Half year ended 30 April 2024 Half year ended 30 April 2023 Full year ended 31 October 2024 Full year ended 31 October 2023
Adjusted operating profit
For reporting period/year £m 11.9 6.2 22.1 31.3 44.2
Second half of the prior year where applicable £m 25.1 22.1
Rolling 12 month £m 37.0 28.3
As at As at As at As at As at
30 April 30 April 30 April 31 October 31 October
2025 2024 2023 2024 2023
Capital employed £m £m £m £m £m £m
Equity shareholders' funds £m 733.2 803.1 876.6 728.9 856.3
Net debt/net (cash) (note 14) £m 71.5 9.4 (66.2) 8.5 (64.9)
Closing capital employed £m 804.7 812.5 810.4 737.4 791.4
Average closing capital employed £m 808.6 811.5 764.4
Independent review report to Crest Nicholson Holdings plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Crest Nicholson Holdings plc's condensed consolidated interim
financial statements (the "interim financial statements") in the unaudited
interim results of Crest Nicholson Holdings plc for the 6 month period ended
30 April 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Condensed Consolidated Statement of Financial Position as at
30 April 2025;
· the Condensed Consolidated Income Statement and the Condensed
Consolidated Statement of Comprehensive Income for the period then ended;
· the Condensed Consolidated Cash Flow Statement for the period then
ended;
· the Condensed Consolidated Statement of Changes in Equity for the
period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the unaudited interim results of
Crest Nicholson Holdings plc have been prepared in accordance with UK adopted
International Accounting Standard 34, 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the unaudited interim results
and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Material uncertainty related to going concern
In forming our conclusion on the interim financial statements, which is not
modified, we have considered the adequacy of the disclosure made in note 1 to
the interim financial statements concerning the Group's ability to continue as
a going concern. The Group has prepared rolling forecasts covering the period
until 31 October 2026. In a severe but plausible downside scenario the Group
is forecast to breach its interest cover covenant during the going concern
period at its measurement date of 31 October 2025. If this covenant breach
were to occur, it would constitute an event of default under the terms of the
revolving credit facility agreement and senior loan notes. The Group is
confident the amendments to its covenants would be secured if necessary,
however, this is not guaranteed and therefore this represents a material
uncertainty related to going concern. These conditions, along with the other
matters explained in note 1 to the interim financial statements, indicate the
existence of a material uncertainty which may cast significant doubt about the
Group's ability to continue as a going concern. The interim financial
statements do not include the adjustments that would result if the Group were
unable to continue as a going concern.
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately applied the going concern basis of accounting in the
preparation of the interim financial statements.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The unaudited interim results, including the interim financial statements, is
the responsibility of, and has been approved by the directors. The directors
are responsible for preparing the unaudited interim results in accordance with
the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority. In preparing the unaudited interim
results, including the interim financial statements, the directors are
responsible for assessing the Group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the Group or to cease operations, or have no realistic alternative
but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the unaudited interim results based on our review. Our
conclusion is based on procedures that are less extensive than audit
procedures, as described in the Basis for conclusion paragraph of this report.
This report, including the conclusion, has been prepared for and only for the
company for the purpose of complying with the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority and for no other purpose. We do not, in giving this conclusion,
accept or assume responsibility for any other purpose or to any other person
to whom this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
11 June 2025
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BRGDLBSBDGUBRecent news on Crest Nicholson Holdings
See all newsREG - Crest Nicholson Hdgs - Half-year Report
AnnouncementREG - Crest Nicholson Hdgs - Director/PDMR Shareholding
AnnouncementREG - Crest Nicholson Hdgs - Director/PDMR Shareholding
AnnouncementREG - Crest Nicholson Hdgs - Block listing Interim Review
AnnouncementREG - Official List - Official List Notice
Announcement