REG - Crest Nicholson Hdgs - Final Results
Today 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:20260129:nRSc8168Qa&default-theme=true
RNS Number : 8168Q Crest Nicholson Holdings PLC 29 January 2026
Crest Nicholson Holdings plc
(the "Group" or "Crest Nicholson")
FULL YEAR RESULTS IN LINE WITH NOVEMBER 2025 TRADING UPDATE
BALANCE SHEET FOCUS DRIVING INVENTORY IMPROVEMENTS
EARLY SIGNS OF IMPROVING HOUSING MARKET
Crest Nicholson Holdings plc ('Crest Nicholson' or 'Group') today announces
its Preliminary Results for the year ended 31 October 2025.
Martyn Clark, CEO commented:
'2025 has been a year of transition and transformation for Crest Nicholson.
Despite the ongoing market challenges, we have made meaningful progress
against each of the key strategic priorities set out at our Capital Markets
Day, repositioning the Group to the mid-premium market segment. During the
year, we took significant steps to implement our transformation plan, Project
Elevate, which will support improved financial returns and underpin delivery
of our medium-term ambitions.
A key early priority has been strengthening the balance sheet. We completed
several land sales on attractive economic terms and introduced tighter
inventory and cash management controls across the business which saw us finish
the year with an indebtedness position that was better than our guidance.
Since the year end, the Group has successfully renewed its £250m revolving
credit facility with its existing lenders on a four-year term to October 2029.
Our land bank remains a core asset, with high-quality sites in affluent areas
and strong embedded margins that underpin our confidence in the Group's
ability to deliver long-term shareholder value.
Operationally, we have continued to enhance our build quality and our customer
service metrics - critical foundations for competing in the mid-premium
market. The sustained implementation of our 'Right first time' initiatives
will deliver greater cost improvements as the plan progresses.
We have made substantial progress on our fire remediation programme, achieving
the survey completion date agreed by the industry with Government. Work is now
well underway on the buildings requiring remediation and we continue to
execute in line with our overall cost expectations.
While the housing market remains subdued, we are starting to see some early
signs of improvement. Interest rates are easing and inflation has moderated,
which should gradually support affordability and consumer confidence. With
these fundamentals improving, and with our deliberate and differentiated
strategy, Crest Nicholson is well positioned to deliver a year of profitable
growth and make progress towards our medium-term targets.'
2025 Financial Summary
£m (unless otherwise stated) 2025 2024(3) % change
Adjusted basis (1)
Revenue 610.8 618.2 (1.2)%
Operating profit 34.7 29.2 18.8%
Operating profit margin 5.7% 4.7% 100bps
Profit before tax 26.5 20.3 30.5%
Basic earnings per share (p) 7.8 5.0 56.0%
Statutory basis
Revenue 610.8 618.2 (1.2)%
Operating profit/(loss) 24.2 (130.8) n/m
Operating profit/(loss) margin 4.0% (21.2)% n/m
Profit/(loss) before tax 2.9 (145.8) n/m
Basic earnings/(loss) per share (p) 0.9 (41.0) n/m
Other metrics
Home completions (units) 1,691 1,873 (9.7)%
Net debt (1,2) 38.2 8.5 n/m
Dividend per share (p) 3.1 2.2 40.9%
1. Adjusted basis represents the 2025 and 2024 statutory figures adjusted for
exceptional items as disclosed in note 4. 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 numbers are included below.
2. Net debt is defined as cash and cash equivalents less interest-bearing
loans and borrowings. See note 25 to the consolidated financial statements.
3. See note 28 of the consolidated financial statements for an explanation of
the prior year restatement.
Financial highlights
· Housing metrics:
2025 2024
Open market 1,095 1,047
Bulk / PRS 159 331
Affordable 437 495
Total 1,691 1,873
OM sales rate ex bulk 0.51 0.48
Average outlets 40 44
· Land sales: Revenue of £78.8m, gross margin £17.1m, and 1,119
plots as the land bank is reconfigured for the mid-premium strategy and
optimising the balance sheet
· Inventory: Reduced by £73.0m (6.5%) to £1,056.1m, driven
particularly by improvements across land, part exchange and completed units
· APBT: £26.5m, reflecting a weaker than expected housing market
in H2
· Legal claim: settlement achieved after year end in line with the
provision relating to a low-rise bespoke apartment block built by the Group
which was damaged by fire in 2021
· Reserves adjustment: Opening reserves adjustment to inventory of
£8.3m reflecting overstated profit in relation to one development in the
Eastern division between 2022 and 2024
· Land creditors: Reduced to £73.2m (2024: £131.6m)
· Net debt: £38.2m, better than guidance, supported by inventory
reduction and disciplined cash management.
· Financing: After year end, the Group renewed its £250m revolving
credit facility with existing lenders on a four-year term to October 2029
Operational and Project Elevate highlights
· Planning: Secured key planning consents, reinforcing our
high-quality land pipeline, underpinning future outlet growth and margin
expansion. Encouraging improvements in the planning environment, with 66% of
the strategic land bank now allocated or in draft allocation (2024: 47%)
· Land acquisition: Acquired 4 sites with 483 units at an accretive
forecast gross margin
· Sales transformation: Continued transformation of sales function,
including launch of the new website. Significant interest in Arteva, our new
upgrade range.
· Cost base: Closed one divisional office in December 2025 to
streamline operations, resulting in c.50 redundancies across the division and
selected Group functions
· Customer experience: Strengthened through enhanced training,
technology investment and an improved customer journey; on track to maintain
HBF five star rating
· Build quality: Reduction of NHBC reportable items (RIs) from 0.35
to 0.26 per inspection; externally recognised through five award nominations
from NHBC Premier including winning the Premier development of the year
(101-150 units) for Curbridge Meadows
· New house types: Portfolio now finalised. Designs reflect
mid-premium customer expectations and the Group's strategic repositioning.
Adopted for all planning applications from January 2026, with production
rollout from 2027
· Cost inflation: Low single digit build cost inflation consistent
with sector trends
Fire remediation
The Group completed its fire provision assessment programme for all affected
buildings within the scope of the Developer Remediation Programme in July
2025. Expected costs, after recoveries, have increased by a net £4.1m.
Physical remediation continues to progress well, with external works commenced
on around one third of the buildings requiring remediation. Detailed quotes
secured for a further one third of the buildings, with the procurement process
progressing on the remainder.
Current trading and outlook
Trading conditions at the start of the 2026 financial year mirror the subdued
conditions seen in H2 2025, reflecting ongoing consumer caution and the
absence of demand side stimulus following the Budget. However, since Boxing
Day, forward indicators, including website visits, enquiries and appointment
conversion, show early signs of improving activity levels. January sales rates
have strengthened, supported by improving customer engagement as interest
rates gradually ease, affordability improves and our enhanced customer
proposition gains traction.
The forward order book for 2026 at 25 January 2026 stood at 848 units,
reflecting both the Group's strategic decision to move away from bulk
transactions and the soft trading environment in the Autumn.
The Group expects to increase its outlet position in the H2 2026 with the
launch of new margin accretive sites. These sites are anticipated to support
progressive gross margin improvement as the transformation plan is delivered.
Guidance
The Group provides the following guidance for 2026:
Open market units 1,100 - 1,200
Bulk and affordable units 450 - 500
Outlets (average) c.42
Sales rate 0.5 - 0.6
Land sales revenue £75 - £100m
Adjusted gross margin 15% - 16%
Interest £10m - £12m
Adjusted PBT £32m - £40m
Net debt £15m - £65m
Analyst and investor meeting and webcast details
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 Webcast
(https://webcast.openbriefing.com/crestnicholson-prelim25/)
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
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 Rules 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. 6800600
The person responsible for arranging the release of this announcement on
behalf of the Company is Penny Thomas, Group Company Secretary.
Chief Executive Officer's statement
We are focused on improving all stakeholders' experience through the delivery
of our differentiated mid-premium strategy, ensuring better build quality,
enhanced customer experience and improved financial performance.
A year of renewal, transition and strategic progress
2025 has been a year of renewal, transition and strategic progress for Crest
Nicholson. It has been a period defined by delivery of our new strategy, based
on a deliberate focus on the attractive mid-premium market segment, and
strengthening of the foundations that will support our next phase of growth.
At the same time, we have made steady progress in addressing a number of
legacy and historical issues that have, for too long, constrained our
performance.
While market conditions have been challenging, and are likely to remain so in
the near term, we are encouraged by the continued commitment from government
to support the housing sector. This provides a significant opportunity for us
to drive growth in the years ahead.
The results we are reporting reflect the successful commencement of the
transition outlined at our Capital Markets Day in March 2025. They demonstrate
encouraging progress across the areas we said we would focus on, and tangible
early signs that the actions we are taking are beginning to deliver meaningful
improvement. Our future performance and profitability will be underpinned by
disciplined operational management and a continuous focus on cash management,
quality and striving for exceptional customer service.
I would like to thank my colleagues for their hard work and commitment during
this year and look forward to another year of progress.
Market context
The financial year began on a positive note for the housing market,
underpinned by improving sentiment and stable levels of demand. As the year
progressed, consumer confidence softened, demand for Section 106 affordable
homes remained weak, and the broader economic outlook became more challenging.
Despite these near-term headwinds, the sector continues to benefit from
long-term government supply side commitment and a clear recognition of the
critical role that housing delivery plays in supporting national economic
growth, even if the impact of such support will take time to materialise.
2025 performance and inventory optimisation
In 2025 we delivered 1,691 homes with adjusted profit before tax at £26.5m.
Net debt was at the better end of our guidance range at £38.2m.
While profitability was marginally below the lower end of the guidance,
reflecting weaker market conditions in the second half of the year, we have
delivered strong progress in inventory optimisation through tighter alignment
of build programmes with forecast sales, planning, and outlet activity. As
part of our strategy to right-size our land portfolio, we have successfully
completed several land sales during the year on good economic terms and have
used the funds to acquire new sites more aligned with our strategy. Working
closely with our existing lenders, we have recently extended our revolving
credit facility of £250m to October 2029, strengthening our platform for
sustainable growth.
Repositioning to the mid-premium market
As part of our strategy to deliver more sustainable and higher-quality
returns, we are transitioning into the mid-premium market. This housing
segment has consistently demonstrated greater resilience and stronger
performance than the traditional volume-led housebuilding market, particularly
through periods of economic uncertainty. Demand in the mid-premium segment is
supported by more affluent, less price-sensitive buyers, resulting in steadier
sales rates and firmer pricing. Crest Nicholson is well positioned to
capitalise on this change in focus, with land holdings in the right locations
across its divisions, typically characterised by stronger local market
conditions and brand heritage that people associate with quality. This
strategic focus will allow us to differentiate our new house type range, have
less reliance on volume-driven incentives, and deliver more sustainable value
over the medium to long term.
Delivering on the new opportunity: Project Elevate
During the year, we set out and began to execute our transformation plan and
strengthen the foundations for the next phase of our growth. Central to this
is Project Elevate, a comprehensive, business-wide change programme designed
to improve our operations, culture, and performance. The programme is owned
and sponsored by the Executive Committee, and is already making a material
difference.
Project Elevate is focused on four strategic priorities:
Optimising the value of our land bank
During the year, we have made significant progress towards ensuring that our
land bank will be aligned to our mid-premium strategy and long-term growth
ambitions. We completed a comprehensive review of our portfolio to assess the
financial, operational, and strategic fit of each site within our new
framework.
As part of this process, we made successful disposals of five land parcels
from larger sites, in line with our land strategy. These sites primarily
require substantial upfront infrastructure investment, which, while viable,
would have constrained returns on capital and diverted focus from higher
returning opportunities. We have also been active in purchasing land which
aligns with our mid-premium strategy with forecast embedded margins ahead of
our medium-term guidance. This disciplined approach allows us to balance the
economics of our outlets more effectively, prioritising sites that deliver
stronger margins, faster asset turn, and a more balanced risk profile across
the portfolio.
Our strategic land holdings continue to represent a key lever for future
margin expansion and sustainable growth. Over the year, we experienced
improvements in the planning environment, with 66% of our strategic land bank
allocated or in draft allocation stage (2024: 47%). This pipeline underpins
our ability to deliver outlet and margin growth in the coming years,
supporting both operational flexibility and enhanced financial performance.
We are embedding a more data-driven and disciplined approach to land
acquisition, underpinned by enhanced governance and rigorous review by our
Investment Committee. This ensures that decisions we make align with our
strategic priorities, maximise value creation, and position Crest Nicholson to
capitalise on opportunities as market conditions improve.
Delivering outstanding customer experience
We remain firmly committed to delivering an exceptional, customer-centric
experience across every stage of the home buying journey. Over the year, we
have made good progress in strengthening our sales capability and customer
engagement, with enhanced training programmes for our sales teams focused on
consistency, communication and care, to provide a service standard that
reflects the mid-premium market.
We continue to invest in our people and in the technology that supports them,
ensuring our teams have the tools and insight to provide customers with a
seamless, responsive, and informed service. From first enquiry through to
post-completion support, we are focused on delivering the highest standards of
professionalism and attention to detail. To support this, we enhanced our
customer-facing website, and launched Arteva, an upgrade range to enable
customers to personalise their home, which is attracting a lot of interest and
positive feedback.
This renewed emphasis on service excellence is becoming a hallmark of the
Crest Nicholson brand, reinforcing trust with our customers and supporting our
ambition to be recognised as one of the most customer-focused homebuilders in
the sector.
Building exceptional quality homes, efficiently - developing and delivering
the right product
We have finalised the development of our new range of homes, which will
reflect the mid-premium positioning of the Crest Nicholson brand and set a new
standard for quality and design within our markets. Following extensive market
research and leveraging our own industry knowledge to understand and establish
what our targeted customer base wants, this new product range will exhibit
excellence in build quality, design, and aspirational lifestyle, and deliver
architecturally detailed homes that feel distinctively mid-premium. We are
excited to begin introducing these new homes across selected developments,
providing a tangible step forward in our strategy to deliver homes that
combine premium character with enduring value, incorporating design principles
that anticipate future energy and performance expectations.
We continue to ensure that we deliver our homes efficiently and responsibly,
with streamlined construction processes that minimise delays and waste. We
take a balanced approach to align sales to our build rate to avoid unnecessary
capital being used. We are continuing to develop strong partnerships with
suppliers and contractors, and to train the build team to achieve the
mid-premium standard.
Operational and commercial excellence
The Group has continued to strengthen operational discipline and efficiency
across the business, ensuring that our structure, processes, and systems are
fully aligned with our strategic priorities. During the year, we continued the
upgrade of our Cost Value Recognition process. This will enable us to have
greater focus on future planned productivity throughout the organisation,
supported by clearer accountability and improved decision-making. In parallel,
we are reviewing our operating model within the mid-premium segment to ensure
it remains fit for purpose as the business grows. These actions will help us
build a leaner, more agile organisation capable of delivering sustained
performance improvement.
We have streamlined operations and managed overheads carefully, maintaining a
clear focus on cost control and productivity. As part of this process, we have
simplified parts of the organisation to maximise productivity, including
merging the Yorkshire division with the Midlands division, and the closure of
the Chiltern division in December 2025. While this has unfortunately involved
some redundancies, some of which will be implemented in the 2026 financial
year, these changes were strategically necessary to create a more focused and
efficient operating model, and will help reduce our overhead costs going
forward, as part of Project Elevate.
This disciplined approach will enable Crest Nicholson to deliver improved
operational performance. We are already seeing tangible improvements across
key stages of our value chain, from build quality to sales performance and
customer satisfaction. Build standards and inspection outcomes have continued
to improve, reflecting our increased focus on quality and consistency on site.
Throughout the year, we achieved significant external recognition for our
build quality. Notably, we received accolades from the National House-Building
Council (NHBC) and Premier for five of our sites including winning the Premier
national award for development of the year (101-150 units) for Curbridge
Meadows. Our independent Construction Quality Review ratings have seen an
increase of 5.3% within a 12-month period and the number of reportable items,
as measured by the warranty provider, NHBC, has improved markedly, dropping
from 0.35 last year to 0.26, a 26% decrease. With the hard work and commitment
of our colleagues, we regained our Home Builders Federation (HBF) 5 star
customer service rating for 2024, and during the year have consistently
exceeded the threshold for a 5 star rating when measured against the new HBF
scoring matrix.
Sales in a challenging macro environment, particularly in the second half of
the year, were supported by more disciplined pricing and reduced reliance on
discounting. However, work undertaken through Project Elevate will enable us
to build on this. Customer satisfaction scores have shown a positive upward
trend, driven by better communication, enhanced service standards, and a more
joined-up approach between our construction and customer service teams. These
improvements, though still early in the transformation journey, demonstrate
the growing impact of Project Elevate and the collective effort of our people
to deliver lasting change across the business.
Strengthening culture, people and leadership
Our people and culture remain at the heart of Crest Nicholson's
transformation. Over the past year, we have made meaningful progress in
building a stronger, more engaged organisation and one that is aligned behind
a shared purpose and our new strategic priorities. Leadership engagement has
been a particular area of focus, with our restructured Executive Committee
fully committed to driving change and embedding the principles of Project
Elevate across the business.
Through Group-wide senior leadership conferences, divisional roadshows, and
ongoing communication, we have continued to nurture and develop openness,
collaboration, and an accountability culture that supports our ambition to be
a high-quality, customer-focused homebuilder, recognised for both its results
and its integrity.
Old Crest Nicholson: managing our legacy issues
We continued to make steady progress in managing and resolving the legacy
issues that have affected the business in recent years. This remains a
significant area of focus and will continue to feature through 2026 and beyond
as we work diligently to bring these matters to conclusion.
Fire remediation
On fire safety, our assessment programme was completed by the July 2025
deadline set out in the government's Remediation Acceleration Plan targets. We
have reassessed the required provision with further detail set out in the
Financial review. We remain focused on delivery, working closely with
residents, contractors, and relevant authorities to ensure that all projects
are completed to the highest standards and in line with the Remediation
Acceleration Plan. We will vigorously continue to pursue liable third parties
to recover costs, and we recouped £12.4m in the year.
Completed sites provisions and low-margin sites
Completed sites provisions relate to legacy obligations and issues on
previously completed sites, including remediation of historical building
defects, completing and maintaining roads and infrastructure prior to handover
to management control or local authority adoption, and fulfilling other
outstanding planning requirements. Although the work is time-consuming, we are
progressing it as effectively as possible to ensure full compliance with our
obligations.
Finally, we continue to trade through low-margin sites, managing these in line
with our financial guidance and strategic objectives. These sites are becoming
a smaller proportion of overall revenue, which will help reduce their
distorting effect on the Group's gross margins.
Outlook: cautious yet confident in our direction
We remain confident in the medium-term targets set out in March 2025 and in
the Group's capacity to deliver sustainable growth. We recognise that the
trajectory of unit completions and profit will not be linear over the period,
and that 2026 will remain a transitional year in a difficult market.
Nevertheless, we continue to implement a wide range of self-help measures and
improvements within Project Elevate to enhance margins and operational
efficiency. As with the rest of the sector, we anticipate that a supportive
housing market will provide additional stimulus to realise the full benefits
of our strategy.
Our actions over the past year have positioned Crest Nicholson to navigate
this environment with resilience and discipline. We have strong leadership,
refreshed strategies, and a clear purpose guiding our decisions and
priorities. The operational progress delivered through Project Elevate,
combined with a sharper focus on capital allocation and cost control, is
ensuring that the business remains stable and well managed despite external
headwinds. The foundations we have established and are building in our land
strategy, customer experience, new house types, product offering and culture,
are robust, and we are confident these will enable Crest Nicholson to succeed
in the mid-premium market over the medium term.
Martyn Clark
Chief Executive Officer
Financial review
The progress made towards implementing our new strategy and our operating
framework has driven greater resilience and efficiency as we transform the
business through challenging market conditions.
Completions and revenue
Open market private completions were 1,095 (2024: 1,047), open market bulk
completions were 159 (2024: 331) and affordable completions were 437 (2024:
495). As a result, total home completions were 1,691 (2024: 1,873), down 9.7%,
as our strategy to rebalance the open market portfolio away from bulk and
towards private completion has begun to take effect. However, overall sales
levels did reflect continued low levels of confidence in the UK housing market
as a result of macroeconomic uncertainty, despite the four 0.25% reductions in
the Bank of England base rate through the year.
The total weighted average selling price for the Group was £323k (2024:
£344k). The reduction reflects a change in the mix of open market sales with
an increase in lower value apartment sales and a reduction in higher value
housing sales, which is expected to reverse in 2026. Prices were stable on a
like-for-like basis.
The open market sales rate, as measured by sales per outlet per week, was 0.51
for the year compared with 0.48 in 2024. The housing market remained sluggish
throughout 2025 compared with much of the previous decade, with comparatively
high mortgage rates, low consumer confidence and an absence of meaningful
government support all contributing to the depressed levels of demand.
While the government has begun loosening monetary policy, persistent
uncertainty and low economic growth has restricted improvements to the sales
environment. Average sales outlets were 40 (2024: 44). Planning matters
continue to take much longer to progress sites to operational development, and
associated environmental impacts such as water and nutrient neutrality further
delay planning decisions. As a result of these factors, revenue from housing
totalled £529.4m (2024: £572.5m), a reduction of 8%. However, we expect an
increase in our sales outlets in 2026 and, as a result, we expect an
improvement in housing revenue.
We completed £78.8m (2024: £44.7m) of land sales on five sites as we effect
our strategy to focus our land bank and site developments.
Total revenue for the year was £610.8m, compared with £618.2m in 2024, a
decrease of 1.2%.
Gross profit
Adjusted gross profit was £85.3m (2024: £84.7m(1)). This reflected the
continued weak sales environment, more than offset by higher land sales.
During the year £3.7m net inventory impairments were recognised within
adjusted gross profit (2024: £8.5m), the reduction from the prior year
largely driven by the non-recurrence of legacy development costs.
Gross profit on land sales was £17.1m (2024: £9.9m). Adjusted gross profit
margin was 14.0% (2024: 13.7%(1)). Statutory gross profit was £81.3m (2024:
gross loss £73.7m(1)).
Operating profit and margin
Adjusted operating profit of £34.7m (2024: £29.2m(1)) was an increase of
£5.5m (18.8%) as a result of the gross profit increase of £0.6m and a £4.9m
reduction in overheads. The statutory operating profit for the year was
£24.2m after a net exceptional items charge of £10.5m (2024: £130.8m(1)
statutory operating loss after a net exceptional items charge of £160.0m).
Fire remediation
The Group has now performed external wall and internal fire safety assessments
for all of the identified buildings within the scope of the Developer
Remediation Contract, other than two, where governmental support has been
requested to gain access. The buildings identified have been regularly updated
during 2025 as surveys concluded that no further works were required on
certain buildings, and a small number of additional buildings were identified
as further investigative exercises took place.
In the previous year the Group recorded a combustible materials charge of
£131.7m, mainly relating to the estimated costs of non-surveyed buildings at
that time based on the increased level of information that the Group had
gathered to reasonably estimate any provision required. During the year, as
the number of surveyed buildings nears completion, this estimate has been
updated, reflecting the outcome of surveys, along with changes in forecast
build cost scope and price over the duration of remediation for previously
surveyed buildings. This has resulted in a net charge in the year of £10.6m,
comprising a provision of £39.9m, and a release of £29.3m. The release
primarily relates to buildings where surveys performed in the year confirmed
that no remedial works are required.
While nearly all buildings have now been surveyed, detailed cost plans and
work tenders need to be finalised for approximately 30% of the buildings, and
the estimate for these buildings has been made in a similar manner to the
prior year, updated for the latest cost experience of the Group. Combustible
materials net charge of £12.8m per note 4 of the financial statements
includes a £2.2m professional fees charge incurred by the Group in pursuing
third parties where it has a contractual right of recourse. The provision is
measured on a nominal basis with an assumed level of inflation over the period
that the remediation will take place. A discount rate of 3.8% (2024: 4.4%)
based on UK gilts rates of equivalent cash flow profiles to that estimated of
the provision, has been applied. The reduction to the discount rate increased
the discounted provision, resulting in a charge to cost of sales of £1.1m in
the period. The discounting applied to the provision unwinds to the
consolidated income statement as finance expense over the expected duration of
the provision.
The Group spent £62.8m in the year on investigative costs and remediation
works, including balcony and cladding-related works. The Group expects to have
completed any required remediation within a five-year period, using £ 95.9m
of the remaining provision within one year, which includes £19.1m repayable
to the Building Safety Fund (BSF). 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 will continue to assess the magnitude and utilisation of this
provision in future reporting periods and the Group recognises that required
remediation works could be subject to further inflationary pressures and cash
outflows. If forecast remediation costs on buildings currently provided for
are 10.0% higher/lower than provided, the pre-tax exceptional items charge in
the consolidated income statement would be £20.3m higher/lower.
The Group is continuing to review the recoverability of costs incurred from
third parties where it has a contractual right of recourse. In the year
£12.4m was recovered from third parties by the Group. Recoveries are not
recognised until they are virtually certain to be received. See note 4 of the
financial statements for the consolidated income statement disclosure.
Exceptional items
Exceptional items are those which, in the opinion of the Directors, are
material by size and/or are non-recurring in nature. During the year the key
items were the net combustible materials charge of £4.1m, including costs of
£3.7m incurred in joint ventures, legal, professional and other costs of
£1.9m incurred in finalising and settling the legacy legal claim related to
fire damage of an apartment scheme in 2021, completed site costs of £1.7m
related to sites completed before 2019 which are no longer part of the core
strategy, restructuring related expenses of £4.3m, and defined benefit
pension costs of £2.2m as a result of a review of historic scheme
documentation in relation to the scheme rules on guaranteed minimum pension
equalisation.
Financing, liquidity and inventory reduction
At 31 October 2025, the Group had net debt of £38.2m (2024: £8.5m). Net debt
including land creditors was £111.4m (2024: £140.1m). Return on capital
employed for the year was 4.7% (2024: 3.8%(1)) reflecting the improved
adjusted operating profit compared with the prior year.
The Group's inventory balance reduced by £73.0m to £1,056.1m driven
particularly by improvements in land, part exchange and completed units.
The Group made good progress on improving its cash management during the year,
with the disposal of five parcels of land that the Group was unable to access
for many years, and increased discipline on part exchange and inventory
controls, which continue to deliver benefits to cash flow.
The Group's debt facilities include a £250m revolving credit facility and a
£65m private placement. After the year end, the Group extended the term of
the revolving credit facility with its existing lenders to October 2029. The
private placement matures in two further tranches, £50m 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 30 April 2027 (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 for 2026 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.
While the Group forecasts to meet all its covenants in the base case scenario,
the SBP downside case indicates that the Group would not meet its interest
cover covenant during the going concern period, with the first measurement
date in April 2026. 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, and notwithstanding the material uncertainty
related to the going concern position 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 financial statements.
Accordingly, the consolidated financial statements continue to be prepared on
a going concern basis. Further detail can be found in note 1 to the
consolidated financial statements.
Pension
The Group operates a defined benefit pension scheme. At 31 October 2025, the
surplus under IAS 19 was £13.7m (2024: £19.5m) with the reduction
attributable to the asset returns underperforming the discount rate and the
rectification of scheme obligations explained above in exceptional items.
Taxation
The effective tax rate applied to the profit before tax (2024: loss before
tax) for the year was 24.1% (2024: 28.0%). Full details are set out in note 8
to the consolidated financial statements.
Earnings per share
Adjusted basic earnings per share was 7.8 pence (2024: 5.0 pence(1)),
reflecting the increase in the Group's earnings on prior year. Basic statutory
earnings per share was 0.9 pence (2024: statutory loss per share
41.0 pence(1)).
Dividend
The Board proposes to pay a final dividend of 1.8 pence per share for the
financial year ended 31 October 2025 which, subject to shareholder approval,
is expected to be paid on 24 April 2026 to shareholders on the Register of
Members at the close of business on 27 March 2026. This is in addition to the
interim dividend of 1.3 pence per share that was paid on 10 October 2025.
Restatement of 2024 financial statements
As noted in the trading update on 18 November 2025, the 2024 full-year results
and opening reserves have been restated to reflect the impact of cost
forecasting on a single site in the Eastern division, reducing the 2024
adjusted and reported profit before tax by £2.1m and opening reserves by
£6.4m. This restatement is not material to the income statement in any of the
three prior years, however, the cumulative impact is material to the balance
sheet. The results for the 2025 half year will be restated when the Group
announces its results for the 2026 half year. This will reduce adjusted and
reported profit before tax in the 2025 half year by approximately £0.3m. A
thorough review of the other sites in the Eastern division has been undertaken
and no similar issues exist on those other sites.
Increased cost projections for a complex, multi-phase site in the Eastern
division were identified through the Cost Value Recognition (CVR) process.
Following a thorough review, I am satisfied the matters within the Eastern
division are isolated and are not indicative of more pervasive issues across
the Group. I am satisfied that the increased oversight of the CVR process
implemented through 2025 is effective and is driving appropriate rigour and
consistency through the Group's CVR processes.
Control environment
During 2023 we identified that controls were not operating effectively in two
divisions. The control weaknesses related to the divisions' management and
forecasting of build costs and margin.
At the end of 2023, the Group completed the rollout of a new enterprise
resource management (ERP) system that strengthened the key financial and
commercial controls across the business. Subsequently, further controls and
cultural improvements have been implemented within the business, led by the
Chief Executive Officer, new Group Managing Director, Executive Committee and
myself. During 2025, cost movements in another division in relation to one
specific activity were not appropriately recognised and this was identified
and corrected as part of the year end process. Further enhancements to the
control environment are planned for the year ahead.
As a result, the control environment is operating effectively and will
continue to be strengthened in the year ahead.
Land and planning
At 31 October 2025, the short-term land portfolio comprised 11,083 (2024:
13,935) plots and the Group's strategic land portfolio totalled 18,461 (2024:
17,700) plots, meaning the total land portfolio at 31 October 2025 was 29,544
plots (2024: 31,635). The total gross development value of the portfolio is
£11.0bn (2024: £11.5bn).
The Group is well placed with our consented land bank to meet our completion
expectations. The Group has a well-developed land bank for 2027 and is working
to obtain the relevant planning consents to enable it to meet its development
plans for 2027. The Group is undertaking a thorough review of its land bank to
determine its overall suitability for the business's medium-term needs and
strategic direction.
Bill Floydd
Chief Financial Officer
1 See note 28 of the financial statements for an
explanation of the prior year restatement.
Principal Risks
The Group's principal risks are contained in the 2025 Annual Report to be
published in February 2025.
http://www.rns-pdf.londonstockexchange.com/rns/8168Q_1-2026-1-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8168Q_1-2026-1-28.pdf)
Statement of Directors' responsibilities in respect of the financial
statements
The Directors are responsible for preparing the Annual Report and the
financial statements in accordance with applicable law and regulation.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have prepared the Group financial
statements in accordance with UK-adopted international accounting standards
and the Company financial statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom Accounting Standards,
comprising FRS 101 'Reduced Disclosure Framework', and applicable law).
Under company law, Directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs
of the Group and Company and of the profit or loss of the Group for that
period. In preparing the financial statements, the Directors are required to:
· select suitable accounting policies and then apply them
consistently
· state whether applicable UK-adopted international accounting
standards have been followed for the Group financial statements and United
Kingdom Accounting Standards, comprising FRS 101, have been followed for
the Company financial statements, subject to any material departures disclosed
and explained in the financial statements
· make judgements and accounting estimates that are reasonable and
prudent, and
· prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group and Company will
continue in business.
The Directors are responsible for safeguarding the assets of the Group and
Company and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
The Directors are also responsible for keeping adequate accounting records
that are sufficient to show and explain the Group's and Company's transactions
and disclose with reasonable accuracy at any time the financial position of
the Group and Company and enable them to ensure that the financial statements
and the Directors' remuneration report comply with the Companies Act 2006.
The Directors are responsible for the maintenance and integrity of the
Company's website. Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from legislation in other
jurisdictions.
Directors' confirmations
The Directors consider that the Annual Report and financial statements, taken
as a whole, is fair, balanced and understandable and provides the information
necessary for shareholders to assess the Group's and Company's position and
performance, business model and strategy.
Each of the Directors, whose names and functions are listed on pages 59-60 of
the 2025 Annual Report to be published in February 2026, confirm that, to the
best of their knowledge:
· the Group financial statements, which have been prepared in
accordance with UK-adopted international accounting standards, give a true and
fair view of the assets, liabilities, financial position and profit of the
Group
· the Company financial statements, which have been prepared in
accordance with United Kingdom Accounting Standards, comprising FRS 101, give
a true and fair view of the assets, liabilities and financial position of the
Company, and
· the Strategic report includes a fair review of the development
and performance of the business and the position of the Group and Company,
together with a description of the principal risks and uncertainties that it
faces.
In the case of each Director in office at the date the Directors' Report is
approved:
· so far as the Director is aware, there is no relevant audit
information of which the Group's and Company's auditors are unaware, and
· they have taken all the steps that they ought to have taken as a
Director in order to make themselves aware of any relevant audit information
and to establish that the Group's and Company's auditors are aware of that
information.
On behalf of the Board
Martyn Clark
Chief Executive Officer
28 January 2026
AUDITED FINANCIAL INFORMATION
The consolidated financial statements and notes 1 to 28 for the year ended 31
October 2025 are derived from the Group's annual financial statements which
have been audited by PricewaterhouseCoopers LLP. The unmodified audit report
is available for inspection at the Group's registered office.
CREST NICHOLSON HOLDINGS PLC
Consolidated Income Statement
For the year ended 31 October 2025
Restated(1) Restated(1)
Pre- exceptional items Exceptional items Total Pre- exceptional items Exceptional items Total
(note 4) (note 4)
2025 2025 2025 2024 2024 2024
Note £m £m £m £m £m £m
Revenue 3 610.8 - 610.8 618.2 - 618.2
Cost of sales (525.5) (4.0) (529.5) (533.5) (158.4) (691.9)
Gross profit/(loss) 85.3 (4.0) 81.3 84.7 (158.4) (73.7)
Other operating income 5 59.9 - 59.9 75.8 - 75.8
Other operating expenses 5 (55.9) - (55.9) (69.9) - (69.9)
Administrative expenses (55.1) (6.5) (61.6) (60.8) (1.6) (62.4)
Net impairment gains/(losses) on financial assets 16 0.5 - 0.5 (0.6) - (0.6)
Operating profit/(loss) 5 34.7 (10.5) 24.2 29.2 (160.0) (130.8)
Finance income 7 4.4 - 4.4 4.0 - 4.0
Finance expense 7 (14.0) (9.4) (23.4) (12.8) (6.1) (18.9)
Net finance expense (9.6) (9.4) (19.0) (8.8) (6.1) (14.9)
Share of post-tax profits/(losses) of joint ventures using the equity method 13 1.4 (3.7) (2.3) (0.1) - (0.1)
Profit/(loss) before tax 26.5 (23.6) 2.9 20.3 (166.1) (145.8)
Income tax (expense)/credit 8 (6.6) 5.9 (0.7) (7.4) 48.2 40.8
Profit/(loss) for the year attributable to equity shareholders 19.9 (17.7) 2.2 12.9 (117.9) (105.0)
Earnings/(loss) per ordinary share
Basic 10 7.8p 0.9p 5.0p (41.0p)
Diluted 10 7.7p 0.9p 5.0p (41.0p)
(1) See note 28 for an explanation of the prior year restatement.
The notes below form part of these consolidated financial statements.
CREST NICHOLSON HOLDINGS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 October 2025 2025 Restated(1
) 2024
Note £m £m
Profit/(loss) for the year attributable to equity shareholders 2.2 (105.0)
Other comprehensive (expense)/income:
Items that will not be reclassified to the consolidated income statement:
Actuarial (losses)/gains on defined benefit schemes 15 (3.9) 8.5
Change in deferred tax on actuarial losses/(gains) of defined benefit schemes 14 1.5 (2.1)
Other comprehensive (expense)/income for the year net of income tax (2.4) 6.4
Total comprehensive expense attributable to equity shareholders (0.2) (98.6)
(1) See note 28 for an explanation of the prior year restatement.
The notes below form part of these consolidated financial statements.
CREST NICHOLSON HOLDINGS PLC
Consolidated Statement of Changes in Equity
For the year ended 31 October 2025
Share capital Share premium account Retained earnings Total equity
Note £m £m £m £m
Balance at 1 November 2023 as previously reported 12.8 74.2 769.3 856.3
Adjustment(1) - - (4.9) (4.9)
Restated balance at 1 November 2023(1) 12.8 74.2 764.4 851.4
Loss for the year attributable to equity shareholders restated(1) - - (105.0) (105.0)
Actuarial gains on defined benefit schemes 15 - - 8.5 8.5
Change in deferred tax on actuarial gains on defined benefit schemes 14 - - (2.1) (2.1)
Total comprehensive expense for the year restated(1) - - (98.6) (98.6)
Transactions with shareholders:
Equity-settled share-based payments 6 - - 1.8 1.8
Deferred tax on equity-settled share-based payments 14 - - 0.1 0.1
Purchase of own shares 22 - - (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 restated(1) 12.8 74.2 635.5 722.5
Profit for the year attributable to equity shareholders - - 2.2 2.2
Actuarial losses on defined benefit schemes 15 - - (3.9) (3.9)
Change in deferred tax on actuarial losses of defined benefit schemes 14 - - 1.5 1.5
Total comprehensive expense for the year - - (0.2) (0.2)
Transactions with shareholders:
Equity-settled share-based payments 6 - - 2.1 2.1
Transfers in respect of share options - - 0.1 0.1
Dividends paid 9 - - (6.4) (6.4)
Balance at 31 October 2025 12.8 74.2 631.1 718.1
(1) See note 28 for an explanation of the prior year restatement.
The notes on below form part of these consolidated financial statements.
CREST NICHOLSON HOLDINGS PLC
Consolidated Statement of Financial Position
As at 31 October 2025
Restated(1
) 2024
2025
ASSETS Note £m £m
Non-current assets
Intangible assets 11 29.0 29.0
Property, plant and equipment 2.8 3.2
Right-of-use assets 12 9.8 10.9
Investments in joint ventures 13 9.5 8.6
Financial assets at fair value through profit and loss 1.6 2.3
Deferred tax assets 14 37.4 41.0
Retirement benefit surplus 15 13.7 19.5
Trade and other receivables 16 21.0 14.6
124.8 129.1
Current assets
Inventories 17 1,056.1 1,129.1
Financial assets at fair value through profit and loss 1.2 1.0
Trade and other receivables 16 111.3 98.1
Current income tax receivable 2.4 4.7
Cash and cash equivalents 18 125.0 73.8
1,296.0 1,306.7
Total assets 1,420.8 1,435.8
LIABILITIES
Non-current liabilities
Interest-bearing loans and borrowings 19 (64.1) (63.2)
Trade and other payables 20 (23.8) (42.3)
Lease liabilities 12 (7.0) (8.8)
Deferred tax liabilities 14 - (4.9)
Provisions 21 (115.1) (192.5)
(210.0) (311.7)
Current liabilities
Interest-bearing loans and borrowings 19 (99.1) (19.1)
Trade and other payables 20 (269.3) (285.2)
Lease liabilities 12 (3.2) (3.2)
Provisions 21 (121.1) (94.1)
(492.7) (401.6)
Total liabilities (702.7) (713.3)
Net assets 718.1 722.5
EQUITY
Share capital 22 12.8 12.8
Share premium account 22 74.2 74.2
Retained earnings 631.1 635.5
Total equity 718.1 722.5
(1) See note 28 for an explanation of the prior year restatement.
The notes on below form part of these consolidated financial statements.
These consolidated financial statements were approved by the Board of
Directors on 28 January 2026.
On behalf of the Board
Martyn Clark
Bill Floydd
Director
Director
CREST NICHOLSON HOLDINGS PLC
Consolidated Cash Flow STATEMENT
For the year ended 31 October 2025
2025 Restated(1
) 2024
Note £m £m
Cash flows from operating activities
Profit/(loss) for the year attributable to equity shareholders 2.2 (105.0)
Adjustments for:
Depreciation on property, plant and equipment 5 0.4 0.4
Depreciation on right-of-use assets 12 3.4 2.3
Retirement benefit obligation administrative expenses 15 2.9 0.7
Net finance expense 7 19.0 14.9
Share-based payment expense 6 2.1 1.8
Share of post-tax losses of joint ventures using the equity method 13 2.3 0.1
Impairment of inventories movement 17 (6.6) 2.1
Net (gain)/impairment on financial assets 16 (0.5) 0.6
Income tax expense/(credit) 8 0.7 (40.8)
Operating cash inflow/(outflow) before changes in working capital, provisions 25.9 (122.9)
and contributions to retirement benefit obligations
Increase in trade and other receivables (12.9) (10.6)
Decrease in inventories 79.6 24.3
(Decrease)/increase in trade and other payables and provisions (97.7) 35.6
Contribution to retirement benefit obligations 15 - (1.1)
Cash used by operations (5.1) (74.7)
Finance expense paid (8.6) (5.1)
Income tax received 1.8 12.0
Net cash outflow from operating activities (11.9) (67.8)
Cash flows from investing activities
Purchases of property, plant and equipment - (1.4)
Disposal of financial assets at fair value through profit and loss 0.6 0.2
Funding to joint ventures (14.2) (13.1)
Repayment of funding from joint ventures 6.2 36.4
Dividends received from joint ventures - 2.5
Finance income received 0.9 0.4
Net cash (outflow)/inflow from investing activities (6.5) 25.0
Cash flows from financing activities
Principal elements of lease payments 12 (4.0) (1.9)
Dividends paid 9 (6.4) (32.1)
Net purchase of own shares - (0.1)
Proceeds from borrowings 150.0 112.0
Repayments of borrowings (70.0) (127.0)
Sale and leaseback proceeds - 3.1
Net cash inflow/(outflow) from financing activities 69.6 (46.0)
Net increase/(decrease) in cash and cash equivalents 51.2 (88.8)
Cash and cash equivalents at the beginning of the year 73.8 162.6
Cash and cash equivalents at the end of the year 18 125.0 73.8
(1) See note 28 for an explanation of the prior year restatement.
The notes on below form part of these consolidated financial statements.
CREST NICHOLSON HOLDINGS PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 ACCOUNTING POLICIES
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 Group financial statements consolidate those of the Company and
its subsidiaries (together referred to as the Group) and include the Group's
interest in jointly controlled entities. The parent company financial
statements present information about the Company as a separate entity and not
about its Group.
The financial statements are presented in pounds sterling and amounts are
denominated in millions (£m), unless otherwise stated.
The Group financial statements have been prepared and approved by the
Directors in accordance with UK-adopted international accounting standards,
and with the requirements of the Companies Act 2006 as applicable to companies
reporting under those standards, and have been prepared on the historical cost
basis except for financial assets at fair value through profit and loss, which
are as otherwise stated. The parent company financial statements are presented
below.
The preparation of financial statements in conformity with UK-adopted
international accounting standards requires the Directors to make assumptions
and judgements that affect the application of policies and reported amounts
within the financial statements. Assumptions and judgements are based on
experience and other factors that the Directors consider reasonable under the
circumstances. Actual results may differ from these estimates.
Judgements made by the Directors, in the application of these accounting
policies that have a significant effect on the financial statements and
estimates with a significant risk of material adjustment in the next year are
discussed 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 23.
The Directors consider the possibility of breaching one of the three financial
covenants (gearing, tangible net worth and interest cover) 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 financial statements.
The Directors have assessed the Group's going concern position through to 30
April 2027 (the going concern period), which aligns with its half-year
reporting for the 2027 financial year. The going concern model is made up of a
Board-approved base case and a Severe But Plausible (SBP) downside case.
Within the base case, the Group has already secured a proportion of sales for
2026 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 number of adverse factors that are
deemed to be plausible downside conditions as outlined below. These
incorporate potential macroeconomic scenarios that could be experienced by the
UK, industry-wide dynamics, and Group-specific risks.
The SBP downside case combines the impacts of multiple risk factors which
would interact with each other in a downside scenario, rather than modelling
the impact of individual assumptions. 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 combination in reaching the
SBP downside case.
· Reduction in sales volumes (Principal risks: Market conditions,
solvency and liquidity)
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 23% reduction in unreserved open
market sales volumes for the 2026 financial year and a 15% reduction for the
remainder of the assessment period. Given the importance of completions to
achieving the Group's forecasts, this assumption has the most impact on the
downside case modelled.
· Fall in sales price (Principal risks: Market conditions, solvency and
liquidity)
A reduction in sales prices during an economic slowdown and/or lack of
mortgage availability/affordability for homebuyers. A 3% reduction in average
unreserved open market house selling prices and a 10% reduction in land sale
revenues compared to the current base case.
· Increase in build cost (Principal risks: Supply chain, build cost and
margin, combustible materials and legacy obligations)
Unexpected costs occurring cause a 5% increase in cash outflows on build cost
expenditure.
Mitigation options and considerations
The Directors have considered the mitigations that could be applied in a
deteriorating trading environment to either increase 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 overheads,
site and sales and marketing spend to reflect the lower build and selling
activity in a weaker trading environment
· reducing build spend, including 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
· removal of dividends after April 2026 to conserve cash.
Conclusion on going concern
While the Group forecasts to meet all its covenants in the base case scenario,
the SBP downside scenario indicates that the Group would not meet its interest
cover covenant during the going concern period, with the first measurement
date in April 2026. 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 case. The
Group maintains good relationships and a regular dialogue with all its
lenders, as shown by recently extending the revolving credit facility to
October 2029, 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 financial statements. Accordingly, the
consolidated 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, that may
cast significant doubt on the Group's ability to continue as a going concern.
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 consolidated 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 are described below.
· The judgement to present certain items as exceptional (see note 4).
· The identification of performance obligations where a revenue
transaction involves the sale of both land and residential units, and revenue
on the units is subsequently recognised over time where the land sale element
takes place at the start of the contract (see note 3 for the split of revenue
recognised at a point in time and recognised over time, and also the more
detailed revenue accounting policy).
· The identification of performance obligations in land sales, where
Crest retains a portion of the land and where infrastructure is incomplete at
the transaction date.
· The judgement of development phases to be combined for the purpose of
determining cost of sales with reference to equalised profitability across the
development.
· The recognition of the defined benefit pension scheme net surplus
(see note 15).
· The current and non-current presentation of the combustible materials
provision.
· The presentation of completed site liabilities as either accruals or
provisions.
The key estimates that have a significant impact on the financial statements
are described below.
· Carrying value of inventories.
· Estimation of development profitability and cost of sales recognised
in the period.
· Completed site costs.
· Valuation of the pension scheme assets and liabilities.
· Cost to remediate sites with combustible materials present.
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 consistent estimates and assumptions in reviewing the
going concern basis as those 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 as described below.
Carrying value of inventories
Inventories of land, work-in-progress, completed buildings, including show
homes and part exchange inventories, are stated in the consolidated statement
of financial position at the lower of cost or net realisable value (NRV). On a
regular basis, management updates estimates of future revenue and expenditure
for each development. Future revenue and expenditure may differ from estimates
which could lead to an impairment of inventory if there are adverse changes.
Where forecast revenues are lower than forecast total costs, an inventory
provision is made. This provision may be reversed in subsequent periods if
there is evidence of sustained improved revenue or reduced expenditure
forecast on a development. If forecast revenue was 10.0% lower on sites within
the short-term portfolio (total land portfolio excluding strategic land) as at
31 October 2025, the impact would have reduced profit before tax by £14.7m
(2024: the impact would have increased loss before tax by £13.1m).
Estimation of development profitability
Due to the nature of development activity and, in particular, the length of
the development cycle, the Group has to make estimates of the costs to
complete developments, in particular those which are multi-phase and/or may
have significant infrastructure costs. These estimates are reflected in the
margin recognised on developments in relation to sales recognised in the
current and future years. There is a degree of inherent uncertainty in making
such estimates as well as the judgement is to determine the phases over which
the costs are spread. The Group has established internal controls that are
designed to ensure an effective assessment of estimates is made of the costs
to complete developments and the judgement to determine the phases of a
multi-phase site. The Group considers estimates of the costs to complete on
longer-term sites, which typically have higher upfront shared infrastructure
costs, to have greater estimation uncertainty than sites of shorter duration
with fewer infrastructure requirements. A change in estimated margins on
sites, for example due to changes in estimates of build cost inflation or a
reduction in house prices, could alter future profitability. If forecast costs
were 10.0% higher on sites which contributed to the year ended 31 October 2025
and which are forecast to still be in production beyond the year ending 31
October 2027 (2024: beyond the year ending 31 October 2026), cost of sales in
the current year would have been £27.7m (2024: £29.1m) higher.
The Group has assessed the potential financial impacts of transitional and
physical climate-related risks and opportunities. The primary known
climate-related policy that will affect our product is the Future Homes
Standard, due to be legislated in 2026, which will increase build costs for
individual units. Anticipated additional build costs are incorporated into
project acquisition appraisals. These costs are not expected to have a
material impact on the carrying value of inventories or their associated
project margins or the value of goodwill. Flood risk and broader planning
requirements are also evaluated and accounted for during new project
acquisitions. Longer-term climate-related costs are beyond the time horizon of
the Group's contracted projects and therefore do not impact the carrying value
of inventories or their associated project margins. Additional information on
climate-related risks and opportunities is provided on pages 45-53 of our 2025
Annual Report to be published in February 2026. The impact of climate change
is therefore considered an area of estimation rather than a critical
accounting estimate.
Completed site costs
Completed site costs include completed site accruals, which is predominantly
the cost to complete outstanding site infrastructure and amenities within
developments where the last housing unit has been completed, and completed
site provisions, which is the forecast cost to complete remedial works on
buildings where faults have been identified and the Group is responsible to
remedy. Completed site provisions and accruals can require a number of
estimates and assumptions in their calculation. The Group has to make
estimates of the costs to complete outstanding site infrastructure and
amenities within developments and the cost of remediation required where
faults have been identified post completion. The Group has internal controls
that are designed to ensure an effective assessment of estimates is made of
the costs to finalise completed developments. If forecast completed site costs
are 10.0% higher than provided, the charge in the consolidated income
statement would be £2.0m higher for completed site accruals and £1.5m higher
for completed site provisions.
Valuation of the pension scheme assets and liabilities
In determining the valuation of the pension scheme assets and liabilities, the
Directors utilise the services of an actuary. The actuary uses key assumptions
being inflation rate, life expectancy, discount rate and Guaranteed Minimum
Pensions, which are dependent on factors outside the control of the Group. To
the extent that such assumptions differ to that expected, the pension
liability would change. See note 15 for additional details.
Combustible materials
The combustible materials provision requires a number of key estimates and
assumptions in its calculation. During the year, the combustible materials
provision has been increased to reflect the latest assessment of these costs.
The key assumptions used to determine the provision include, but are not
limited to, identification of the properties impacted through the period of
construction considered. The key estimates then applied to these properties
include the potential costs of investigation, replacement materials and works
to complete, along with the timing of forecast expenditure. The Directors have
used a combination of Building Safety Fund (BSF) cost information, other
external information and internal assessments as a basis for the estimated
remedial costs. The Group has used estimates and assumptions to evaluate the
probable remediation works required to non-surveyed buildings after applying
experience gained from buildings with surveys and applying risk categories to
groups of buildings with similar characteristics. These estimates are
inherently uncertain due to the highly complex and bespoke nature of the
buildings. The actual costs may differ to the amounts notified by the
BSF-costed projects, and fire safety reports in progress may require different
levels of remediation and associated costs than those currently estimated. If
forecast remediation costs on buildings currently provided for are 10.0%
higher/lower than provided, the pre-tax exceptional items charge in the
consolidated income statement would be £20.3m higher/lower. See notes 4 and
21 for additional details.
Adoption of new and revised standards
The Group adopted the following new standards and amendments to standards,
which have had no material impact on the Group's results or financial
statement disclosures:
· amendments to IAS 1 'Non-current Liabilities with Covenants' and
'Classification of Liabilities as Current or Non-current'
· amendments to IFRS 16 'Lease Liability in a Sale and Leaseback'
· amendments to IAS 7 and IFRS 7 'Supplier Finance Arrangements'.
Impact of standards and interpretations in issue but not yet effective
The following new accounting standards and amendments to existing standards
have been issued but are not yet effective or have not yet been endorsed by
the UK:
· amendments to IAS 21 'Lack of exchangeability'
· IFRS 18 'Presentation and Disclosure in Financial Statements'
· IFRS 9 and IFRS 7 'Amendments to the Classification and Measurement
of Financial Instruments'
· amendments to IFRS 9 and IFRS 7 'Contracts Referencing Nature
dependent Electricity'
· Annual Improvements to IFRS Accounting Standards - Volume 11
· IFRS 19 'Subsidiaries without Public Accountability: Disclosures'.
Effective dates will be subject to the UK endorsement process.
The Group is currently assessing the impact of the above standards, but they
are not expected to have a material impact other than potentially in respect
of the IFRS 9 and IFRS 7 'Amendments to the Classification and Measurement of
Financial Instruments' and IFRS 18.
The IFRS 7 and IFRS 9 measurements clarify when a financial liability is
derecognised, specifically at the settlement date. This has the potential to
affect the classification of financial liabilities and cash around a balance
sheet date depending on the nature and timing of year end transactions. The
Group is in the process of assessing the full impact of the amendments to
existing policies and practices.
IFRS 18 replaces IAS 1 and requires that companies classify all income and
expenses into five categories in the statement of profit or loss, namely the
operating, investing, financing, discontinued operations and income tax
categories. Management-defined performance measures are disclosed in a single
note and enhanced guidance is provided on the aggregation and disaggregation
of information presented in the financial statements. The Group is in the
process of assessing the impact of IFRS 18 and anticipates changes to certain
presentational and disclosure-related matters in its consolidated financial
statements in future periods.
The Group has not adopted any other standard, amendment or interpretation that
has been issued but is not yet effective.
Other accounting policies
The accounting policies set out below have, unless otherwise stated, been
applied consistently to all periods presented in these Group financial
statements.
Alternative performance measures (APMs)
The Group has adopted various APMs, as presented below. These measures are not
defined by International Financial Reporting Standards (IFRS) and therefore
may not be directly comparable with other companies' APMs, and should be
considered in addition to, and are not intended to be a substitute for, or
superior to, IFRS measurements.
Consolidation
The consolidated financial statements include the financial statements of
Crest Nicholson Holdings plc, its subsidiary undertakings and the Group's
share of the results of joint ventures and joint operations. Inter-company
transactions, balances and unrealised gains on transactions between Group
companies are eliminated on consolidation.
(a) Subsidiaries
Subsidiaries are entities in which the Group has control. The Group controls
an entity when the Group is exposed to, or has rights to, variable returns
through its power over the entity. In assessing control, potential voting
rights that are currently exercisable or convertible are taken into account.
The profits and losses of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date that
control ceases.
The acquisition method of accounting is used by the Group to account for the
acquisition of subsidiaries that are a business under IFRS 3. On acquisition
of a subsidiary, all of the subsidiary's separable, identifiable assets and
liabilities existing at the date of acquisition are recorded at their fair
values reflecting their condition at that date. All changes to those assets
and liabilities and the resulting gains and losses that arise after the Group
has gained control of the subsidiary are charged to the post-acquisition
consolidated income statement or consolidated statement of comprehensive
income. Accounting policies of acquired subsidiaries are changed where
necessary, to ensure consistency with policies adopted by the Group.
Acquisitions of subsidiaries which do not qualify as a business under IFRS 3
are accounted for as an asset acquisition rather than a business combination.
Under such circumstances the fair value of the consideration paid for the
subsidiary is allocated to the assets and liabilities purchased based on their
relative fair value at the date of purchase. No goodwill is recognised on such
transactions.
(b) Joint ventures
A joint venture is a contractual arrangement in which the Group and other
parties undertake an economic activity that is subject to joint control and
these parties have rights to the net assets of the arrangement. The Group
reports its interests in joint ventures using the equity method of accounting.
Under this method, interests in joint ventures are initially recognised at
cost and adjusted thereafter to recognise the Group's share of the
post-acquisition profits or losses and movements in other comprehensive
income. The Group's share of results of the joint venture after tax is
included in a single line in the consolidated income statement. Where the
share of losses exceeds the Group's interest in the entity and there is no
obligation to fund these losses, the carrying amount is reduced to nil and
recognition of further losses is discontinued, unless there is a long-term
receivable due from the joint venture, in which case, if appropriate, the loss
is recognised against the receivable. If an obligation to fund losses exists,
the further losses and a provision are recognised. Unrealised gains on
transactions between the Group and its joint ventures are eliminated on
consolidation. Accounting policies of joint ventures are changed where
necessary, to ensure consistency with policies adopted by the Group.
(c) Joint operations
A joint operation is a joint arrangement that the Group undertakes with other
parties, in which those parties have rights to the assets and obligations of
the arrangement. The Group accounts for joint operations by recognising its
share of the jointly controlled assets and liabilities and income and
expenditure on a line-by-line basis in the consolidated statement of financial
position and consolidated income statement.
Goodwill
Goodwill represents the excess of what was paid to acquire CN Finance plc on
24 March 2009 over the fair value of their net assets at the acquisition date,
less subsequent impairments. We assess whether goodwill is recoverable by
performing an impairment review annually or more frequently if events or
changes in circumstances indicate a potential impairment on the acquisition.
The goodwill is allocated to the whole group of cash generating units within
the Group; this is the lowest level within the entity at which the goodwill is
monitored for internal management purposes.
The recoverable amount is equal to the higher of value in use and fair value
less costs of disposal. The value in use is estimated as the present value of
the forecast cash flows of the Group. The forecast considers the likelihood
and scale of permitted development, forecast build costs, forecast selling
prices and site procurement in line with the Group's committed strategic model
and in line with current market conditions and projections covering a period
of 5 years to 2030 before applying a terminal value. Cash flows related to
uncommitted future restructurings and enhancement capital expenditure are
excluded from the projections.
Revenue and profit recognition
Revenue comprises the fair value of the consideration received or receivable,
net of value added tax and discounts.
Revenue is recognised on open market and apartment sales at legal completion.
For affordable and other sales in bulk, revenue recognition is dependent on
freehold legal title being passed to the customer as it is considered that,
upon transfer of freehold title the customer controls the work-in-progress.
Where freehold legal title and control is passed to the customer, revenue is
recognised on any upfront sale of land (where applicable) and then on the
housing units as the build of the related units progresses, via surveys of
work performed on contract activity. Where freehold legal title is not passed
to the customer, revenue is not recognised on any upfront sale of land and the
revenue on the housing units and sale of land is recognised at handover of
completed units to the customer. The transaction price for all housing units
is derived from contractual negotiations. Variable consideration is recognised
within revenue to the extent that it is highly probable that a significant
reversal will not occur, and estimates are reassessed at each reporting date.
Revenue on specification upgrades paid for by the customer or on the cost of
specification upgrades offered to the customer as part of the purchase price
is recognised as revenue when legal title of the upgraded property passes to
the customer.
Revenue is predominantly recognised on land sales when legal title passes to
the customer. If the Group has remaining performance obligations, such as the
provision of services to the land, an element of revenue is allocated to these
performance obligations with reference to the relative standalone selling
price of the performance obligations and recognised as the obligations are
performed. Where variable consideration exists, revenue is recognised to the
extent that it is highly probable that a significant reversal will not occur,
and estimates are reassessed at each reporting date.
Revenue recognition on commercial property sales is dependent on freehold
legal title being passed to the customer, as it is considered that, upon
transfer of freehold title the customer controls the work-in-progress. Where
freehold legal title is passed to the customer, revenue is recognised on any
upfront sale of land (where applicable) and then on the development revenue
over time as the build of the related commercial units progresses. Where
freehold legal title is not passed to the customer, revenue is not recognised
on any upfront sale of land and the revenue on the commercial property is
recognised at handover of the completed commercial unit to the customer.
Cost of sales
Cost of sales are recognised by reference to the gross margin forecast across
the related development site. Due to the development cycle often exceeding one
financial year, margins are forecast, taking into account the allocation of
site-wide development costs such as infrastructure, and estimates required for
the cost to complete such developments.
Other operating income
Other operating income comprises rental income, joint venture and other
management fee income and the income associated with part exchange sales. The
Group has made a judgement to not recognise revenue on the proceeds received
on the disposal of properties taken in part exchange against a new property as
they are incidental to the main revenue-generating activities of the Group. As
part exchange sales are deemed incidental, the income and expenses associated
with part exchange properties are recognised in other operating income and
other operating expenses in the consolidated income statement. Part exchange
income is recognised when legal title is passed to the customer. Rental income
is recognised over the term of the rent agreement. Management fee income is
recognised over time, in line with when management services are provided.
Other operating expenses
Other operating expenses represent cost of sales of part exchange properties.
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, restructuring, clarification of historical pension scheme
terms and the write down of freehold inventories. 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 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 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.
Net finance expense
Interest income is recognised on a time-apportioned basis by reference to the
principal outstanding and the effective interest rate. Interest costs
associated with financing facilities are recognised in the consolidated income
statement on an accruals basis using the effective interest method. Imputed
interest expense on deferred land creditors and combustible materials is
recognised over the life of associated cash flows, with reference to the
effective interest rate.
Income and deferred tax
Income tax comprises current tax and deferred tax. Income tax is recognised in
the consolidated income statement except to the extent that it relates to
items recognised in other comprehensive income, in which case it is recognised
in other comprehensive income. Current tax is the expected tax payable on
taxable profit for the year and any adjustment to tax payable in respect of
previous years. Taxable profit is profit before tax per the consolidated
income statement after adjusting for income and expenditure that is not
subject to tax, and for items that are subject to tax in other accounting
periods. The Group's liability for current tax is calculated using tax rates
that have been enacted or substantively enacted by the consolidated statement
of financial position date. Current tax assets are recognised to the extent
that it is probable the asset is recoverable.
Deferred tax is provided in full on temporary differences between the carrying
amounts of assets and liabilities in the financial statements and the
corresponding tax bases used in the computation of taxable profits.
Deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary
differences can be utilised. Deferred tax liabilities are recognised for all
temporary differences. Deferred tax is calculated using tax rates that have
been substantively enacted by the consolidated statement of financial position
date.
Dividends
Final and interim dividend distributions to the Company's shareholders are
recorded in the Group's financial statements in the earlier of the period in
which they are approved by the Company's shareholders, or paid.
Employee benefits
(a) Pensions
The Group operates a defined benefit (DB) scheme (closed to new employees
since October 2001 and to future service accrual since 30 April 2010) and also
makes payments into a defined contribution scheme for employees.
In respect of the DB scheme, the retirement benefit deficit or surplus is
calculated by estimating the amount of future benefit that employees have
earned in return for their service in the current and prior periods, such
benefits measured at discounted present value, less the fair value of the
scheme assets. The rate used to discount the benefits accrued is the yield at
the consolidated statement of financial position date on AA credit rated bonds
that have maturity dates approximating to the terms of the Group's
obligations. The calculation is performed by a qualified actuary using the
projected unit method. The operating and financing costs of such plans are
recognised separately in the consolidated income statement; past service costs
and financing costs are recognised in the periods in which they arise. The
Group recognises expected scheme gains and losses via the consolidated income
statement and actuarial gains and losses are recognised in the period they
occur directly in other comprehensive income, with associated deferred tax.
The retirement benefit deficit or surplus recognised in the consolidated
statement of financial position represents the deficit or surplus of the fair
value of the scheme's assets over the present value of scheme liabilities,
with any net surplus recognised to the extent that the employer can gain
economic benefit as set out in the requirements of International Financial
Reporting Interpretations Committee 14.
Payments to the defined contribution scheme are accounted for on an accruals
basis.
(b) Share-based payments
The fair value of equity-settled, share-based compensation plans is recognised
as an employee expense with a corresponding increase in equity. The fair value
is measured as at the date the options are granted and the charge amended if
vesting does not take place due to non-market conditions (such as service or
performance) not being met. The fair value is spread over the period during
which the employees become unconditionally entitled to the shares and is
adjusted to reflect the actual number of options that vest. At the
consolidated statement of financial position date, if it is expected that
non-market conditions will not be satisfied, the cumulative expense recognised
in relation to the relevant options is reversed.
The proceeds received are credited to share capital (nominal value) and share
premium when the options are exercised if new shares are issued. If treasury
shares are used the proceeds are credited to retained reserves. There are no
cash-settled share-based compensation plans.
Own shares held by Employee Share Ownership Trust (ESOT)
Transactions of the Company-sponsored ESOT are included in both the Group
financial statements and the Company's own financial statements. The purchase
of shares in the Company by the ESOT are charged directly to equity.
Software as a Service (SaaS) arrangements
Implementation costs, including costs to configure or customise a cloud
provider's application software, where the Group determines that there is no
control over the asset in development, are recognised as administrative
expenses when the services are received.
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation
and accumulated impairment losses. Cost includes the original purchase price
of the asset and the costs attributable to bringing the asset to its working
condition. Depreciation is calculated to write off the cost of the assets on a
straight-line basis to their estimated residual value over its expected useful
life as follows:
Fixtures and fittings
10 years
Computer equipment and non-SaaS software
3-5 years
The asset residual values, carrying values and useful lives are reviewed on an
annual basis and adjusted if appropriate at each consolidated statement of
financial position date.
Right-of-use assets and lease liabilities
The Group assesses at lease inception whether a contract is, or contains, a
lease. The Group recognises a right-of-use asset and a lease liability at
lease commencement.
The right-of-use asset is initially recorded at the present value of future
lease payments and subsequently measured net of depreciation, which is charged
to the consolidated income statement as an administrative expense over the
shorter of its useful economic life or its lease term on a straight-line
basis. The right-of-use asset is also reduced for impairment losses.
The Group recognises lease liabilities at the present value of future lease
payments, discounted at the rate implicit in the lease or the Group's
incremental borrowing rate as determined with reference to the most recently
issued financial liabilities carrying interest. The discount is subsequently
unwound and recorded in the consolidated income statement over the lease term
as a finance expense. The lease term comprises the non-cancellable period of
the contract, together with periods covered by an option to extend the lease
where the Group is reasonably certain to exercise that option.
The Group has elected not to recognise right-of-use assets and lease
liabilities for short-term leases that have a lease term of 12 months or less
and leases of low-value assets. The Group recognises the lease payments
associated with these leases as an expense on a straight-line basis over the
lease term.
Inventories
Inventories are stated at the lower of cost and net realisable value (NRV).
Land includes land under development, land options purchased and land
exchanged on an unconditional basis with or without planning consent.
Work-in-progress and completed buildings including show homes comprise direct
materials, sub-contract work, labour costs, site overheads, associated
professional fees and other attributable overheads, but excludes interest
costs.
Part exchange inventories are held at the lower of cost and NRV, which
includes an assessment of costs of resale.
Land inventories and the associated land payables are recognised in the
consolidated statement of financial position from the date of unconditional
exchange of contracts. Land payables are recognised as part of trade and other
payables.
Options purchased in respect of land are recognised initially as a prepayment
within inventories and written down on a straight-line basis over the life of
the option. If planning permission is granted and the option exercised, the
option is not written down during that year and its carrying value is included
within the cost of land purchased.
Provisions are established to write down inventories where the estimated net
sales proceeds less costs to complete exceed the current carrying value.
Adjustments to the provisions will be required where estimated net selling
prices or costs to complete change. NRV for inventories is assessed by
estimating selling prices and costs, taking into account current market
conditions.
Financial assets
Financial assets are initially recognised at fair value and subsequently
classified into one of the following measurement categories:
· at amortised cost
· subsequently at fair value through profit or loss (FVTPL)
· subsequently at fair value through other comprehensive income
(FVOCI).
The classification of financial assets depends on the Group's business model
for managing the asset and the contractual terms of the cash flows. Assets
that are held for the collection of contractual cash flows that represent
solely payments of principal and interest are measured at amortised cost, with
any interest income recognised in the consolidated income statement using the
effective interest rate method.
Financial assets that do not meet the criteria to be measured at amortised
cost are classified by the Group as measured at FVTPL. Fair value gains and
losses on financial assets measured at FVTPL are recognised in the
consolidated income statement and presented within administrative expenses.
The Group currently has no financial assets measured at FVOCI.
Financial assets at fair value through profit and loss
Financial assets at fair value through profit and loss (FVTPL) (which comprise
shared equity receivables) are classified as being held to collect and
initially recognised at fair value. Changes in fair value relating to the
expected recoverable amount are recognised in the consolidated income
statement as a finance income or expense. These assets are held as current or
non-current based on their contractual repayment dates.
Trade and other receivables
Trade and other receivables are recognised initially at fair value and
subsequently measured at amortised cost, using the effective interest method,
less provision for impairment. A provision for impairment of trade and other
receivables is established based on an expected credit loss model applying the
simplified approach, which uses a lifetime expected loss allowance for all
trade and other receivables. The amount of the loss is recognised separately
in the consolidated income statement. Current trade and other receivables do
not carry any interest and are stated at their amortised cost, as reduced by
appropriate allowances for estimated irrecoverable amounts. Non-current trade
and other receivables are discounted to present value when the impact of
discounting is deemed to be material, with any discount to nominal value being
recognised in the consolidated income statement as interest income over the
duration of the deferred payment.
Contract assets
Contract assets represent unbilled work-in-progress on affordable and other
sales in bulk on contracts in which revenue is recognised over time. Contract
assets are recognised initially at fair value and subsequently measured at
amortised cost, using the effective interest method, less provision for
impairment. Contract assets do not carry any interest and are stated at their
amortised cost, as reduced by appropriate allowances for estimated
irrecoverable amounts.
Cash and cash equivalents
Cash and cash equivalents are cash balances in hand and in the bank and are
carried in the consolidated statement of financial position at nominal value.
Interest-bearing loans and borrowings
Interest-bearing loans and borrowings are recognised initially at fair value,
net of direct transaction costs, and subsequently measured at amortised cost.
Finance charges are accounted for on an accruals basis in the consolidated
income statement using the effective interest method, and are added to the
carrying amount of the instrument to the extent that they are not settled in
the period in which they arise or are included within interest accruals.
Financial liabilities
Financial liabilities are initially recognised at fair value and subsequently
classified into one of the following measurement categories:
· at amortised cost
· subsequently at FVTPL.
Non-derivative financial liabilities are measured at FVTPL when they are
considered held for trading or designated as such on initial recognition. The
Group has no non-derivative financial liabilities measured at FVTPL.
Land payables
Land payables are recognised in the consolidated statement of financial
position from the date of unconditional exchange of contracts. Where land is
purchased on deferred settlement terms then the land and the land payable are
discounted to their fair value using the effective interest method in
accordance with IFRS 9. The difference between the fair value and the nominal
value is amortised over the deferment period, with the financing element being
charged as an interest expense through the consolidated income statement.
Trade and other payables
Trade and other payables are recognised initially at their fair value and
subsequently measured at amortised cost using the effective interest method.
Trade and other payables on deferred terms are initially recorded at their
fair value, with the discount to nominal value being charged to the
consolidated income statement as an interest expense over the duration of the
deferred period. Included within trade and other payables are completed site
accruals.
Contract liabilities
Contract liabilities represent payments on account, received from customers,
in excess of billable work-in-progress on affordable and other sales in bulk
on contracts. Contract liabilities are recognised initially at their fair
value and subsequently measured at amortised cost using the effective interest
method.
Provisions
A provision is recognised in the consolidated statement of financial position
when 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.
Provisions are discounted to present value on a discounted cash flow basis
using an interest rate appropriate to the class of the provision, where the
effect is material. Included within provisions are completed site provisions.
Seasonality
In common with the rest of the UK housebuilding industry, activity occurs
throughout the year, with peaks in sales completions in spring and autumn.
This creates seasonality in the Group's trading results and working capital.
2 SEGMENTAL REPORTING
The Board has been identified as the chief operating decision maker as defined
under IFRS 8 Operating Segments. Financial information is reported to the
Board for the UK housebuilding business as a whole and the Board makes
decisions regarding resource allocation on that basis. Accordingly, the Group
has a single UK housebuilding operating segment.
3 REVENUE
2025 2024
Revenue type £m £m
Open market housing including specification upgrades 459.3 493.5
Affordable housing 70.1 79.0
Total housing 529.4 572.5
Land and commercial sales 81.4 45.7
Total revenue 610.8 618.2
Timing of revenue recognition
Revenue recognised at a point in time 521.7 525.0
Revenue recognised over time 89.1 93.2
Total revenue 610.8 618.2
Assets and liabilities related to contracts with customers
Contract assets (note 16) - 7.6
Contract liabilities (note 20) (10.2) (6.9)
Contract assets have decreased to £nil from £7.6m in 2024, reflecting less
unbilled work-in-progress on affordable and other sales in bulk at the year
end. This is in line with the trading of the Group and the contractual
arrangements in the Group's contracts. Contract liabilities have increased to
£10.2m from £6.9m in 2024.
Based on historical trends, the Directors expect a significant proportion of
the contract liabilities total to be recognised as revenue in the next
reporting period.
Included in revenue during the year was £3.5m (2024: £2.9m) that was
included in contract liabilities at the beginning of the year.
During the year £nil (2024: £nil) of revenue was recognised from performance
obligations satisfied or partially satisfied in previous years.
As at 31 October 2025 there was £95.0m (2024: £151.9m) of transaction price
allocated to performance obligations that are unsatisfied or partially
unsatisfied on contracts exchanged with customers. Based on forecasts, the
Group expects to recognise £50.9m (2024: £111.3m) of transaction prices
allocated to performance obligations that are unsatisfied on contracts
exchanged with customers within one year, £42.6m (2024: £40.6m) within two
to five years, and £1.5m (2024: £nil) over five years.
4 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, restructuring, clarification of historical pension scheme
terms and the write down of freehold inventories. 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 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 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 marginal tax rate
related to these items.
2025 2024
£m £m
Cost of sales
Combustible materials net charge (12.8) (131.7)
Combustible materials recoveries 12.4 4.4
Net combustible materials charge (0.4) (127.3)
Legal provision and professional fees (1.9) (0.4)
Completed site costs (1.7) (25.0)
Freehold inventories write off - (5.7)
Total cost of sales charge (4.0) (158.4)
Administrative expenses
Aborted transaction costs - (1.6)
Restructuring related expenses (4.3) -
Pension costs (2.2) -
Net finance expense
Combustible materials imputed interest (9.4) (6.1)
Share of post-tax profits/(losses) of joint ventures
Combustible materials charge of joint ventures (3.7) -
Total exceptional charge (23.6) (166.1)
Tax credit on exceptional charge 5.9 48.2
Total exceptional charge after tax credit (17.7) (117.9)
Net combustible materials charge
Following the Group's signing of the Developer Remediation Contract on 13
March 2023, the Group assumed contractual obligations with the government to
identify and remediate all buildings it has developed that may contain
life-critical fire safety defects. The combustible materials net charge of
£12.8m represents forecast changes in build costs, costs of remediating
buildings surveyed in the year and changes in the provision discount, and
includes a £2.2m professional fees charge incurred by the Group in pursuing
third parties where it has a contractual right of recourse. During the year,
the Group recovered £12.4m (2024: £4.4m) from third parties in respect of
defective design and workmanship. See note 21 for further information.
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 year in relation to the claim. In 2023 the
Group recognised its estimate of the potential liability, which has been
updated at 31 October 2025 to represent the Group's latest estimate. See note
21 for further information.
Following the year end a settlement was reached with the claimant in respect
of the building damaged by the fire in 2021 and a remedial works agreement was
agreed with respect to other buildings identified with defects through this
case. The final terms of the settlement and remedial works agreement are
consistent with the amounts provided for at the balance sheet date, although
the final cost of remedial works will continue to be subject to estimation
uncertainty.
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 completed
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, an exceptional charge of £25.0m was recognised in the prior
year. During the year, a net exceptional charge of £1.7m has been recognised
which represents an update to the estimate of costs required to remediate
these build defects.
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. The remaining value is £nil and therefore this is a
non-recurring item. The market for freehold reversionary interests remains
uncertain given proposed legislative changes in this area and the impact of
some freehold buildings requiring fire remediation works. The cost was
recognised as exceptional due to its size.
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 proposed acquisition. Costs
related to this aborted transaction are classified as exceptional due to their
non-recurring nature, with £nil recognised during the year (2024: £1.6m).
Restructuring related expenses
The Group has commenced a business transformation programme to deliver the
benefits of its new strategy as set out in its Capital Markets Day on 20 March
2025. The programme is expected to conclude by 31 October 2026, as such the
costs 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.
The Chiltern division's closure was announced in November 2025 as part of the
transformation programme. This represents a non-adjusting post balance sheet
event and the associated costs will be recognised in 2026 as exceptional
items.
Pension costs
A review of historical scheme documentation identified inconsistencies in the
basis of estimating obligations and underlying scheme documentation.
Obligations have been estimated with reference to the clarified terms of the
pension scheme. Changes to the obligations have been recognised as exceptional
costs in the year as they are one-off in nature and are outside of the
ordinary course of the Group's activities.
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 in respect of joint ventures represents the
Company's share of an exceptional combustible materials provision recognised
by one of the Group's joint ventures. The provision was recognised in the year
following an independent fire engineer's report that recommended remedial
works.
Taxation
An exceptional income tax credit of £5.9m (2024: £48.2m) has been recognised
in relation to the above exceptional items using the marginal tax rate
applicable to these items.
5 OPERATING PROFIT/(LOSS)
(a) Operating profit of £24.2m (2024: operating loss of £130.8m(1)) from
continuing activities is stated after (charging)/crediting:
Note 2025 Restated(1)
2024
£m £m
Inventories expensed in the year (507.9) (499.7)
Inventories impairment movement in the year 17 6.6 (2.1)
Employee costs 6 (61.1) (63.0)
Depreciation on property, plant and equipment (0.4) (0.4)
Depreciation on right-of-use assets 12 (3.4) (2.3)
(1) See note 28 for an explanation of the prior year restatement.
(b) Other operating income
2025 2024
£m £m
Proceeds on disposal of part exchange properties 55.6 68.8
Rental income 1.6 3.4
Joint venture project management fees 26 2.0 1.9
Other management fee income 0.7 1.7
59.9 75.8
(c) Other operating expenses
2025 2024
£m £m
Costs associated with disposal of part exchange properties 55.9 69.9
(d) Auditors' remuneration
2025 2024
£000 £000
Audit of these consolidated financial statements 200 191
Audit of financial statements of subsidiaries pursuant to legislation 1,008 1,529
Other non-audit services 140 130
The audit fees payable in 2025 included £100,000 (2024: £220,000) in
relation to additional costs for the 2024 audit.
Fees payable to the Group's auditors for non-audit services included £140,000
(2024: £130,000) in respect of an independent review of the half-year
results.
In addition to the above, PricewaterhouseCoopers LLP provide audit services to
the Crest Nicholson Group Pension and Life Assurance Scheme. The fees
associated with the services to the Crest Nicholson Group Pension and Life
Assurance Scheme are £36,080 (2024: £35,505).
6 EMPLOYEE NUMBERS AND COSTS
(a) Average monthly number of persons employed by the Group 2025 2024
Number Number
Development 685 704
The Directors consider all employees of the Group to be employed within the
same category of Development.
(b) Employee costs (including Directors and key management) 2025 2024
£m £m
Wages and salaries 49.8 52.3
Social security costs 6.4 6.0
Other pension costs 2.8 2.9
Share-based payments 2.1 1.8
61.1 63.0
(c) Key management remuneration 2025 2024
£m £m
Salaries and short-term employee benefits 5.0 4.8
Share-based payments 1.2 0.8
6.2 5.6
Key management comprises the Executive Committee (which includes the Executive
Directors of the Board) and Non-Executive Directors as they are considered to
have the authority and responsibility for planning, directing and controlling
the activities of the Group.
(d) Directors' remuneration 2025 2024
£m £m
Salaries and short-term employee benefits 2.0 2.4
Share-based payments 0.6 0.4
2.6 2.8
Further information relating to Directors' remuneration, incentive plans,
share options, pension entitlement and the highest paid Director, appears in
the Directors' remuneration report, which is presented on pages 82-104 of our
2025 Annual Report to be published in February 2026.
7 FINANCE INCOME AND EXPENSE
Note 2025 2024
Finance income £m £m
Interest income 3.0 2.7
Interest on amounts due from joint ventures 26 0.4 0.7
Net interest on defined benefit pension scheme 15 1.0 0.6
4.4 4.0
Finance expense
Interest on bank loans (10.1) (6.7)
Revolving Credit Facility issue costs (0.9) (0.7)
Imputed interest on deferred land payables (2.4) (5.0)
Interest on lease liabilities 12 (0.6) (0.4)
Imputed interest on combustible materials provision - exceptional 4 (9.4) (6.1)
(23.4) (18.9)
Net finance expense (19.0) (14.9)
8 INCOME TAX (EXPENSE)/CREDIT
Note 2025 Restated(1
) 2024
£m £m
Current tax
UK corporation tax (expense)/credit on profit/(loss) for the year (0.1) 3.7
Adjustment in respect of prior periods (0.4) 0.5
Total current tax (expense)/credit (0.5) 4.2
Deferred tax
Origination and reversal of temporary differences in the year (1.7) 36.6
Adjustment in respect of prior periods 1.2 -
Recognised on trading losses 0.3 -
Total deferred tax (charge)/credit 14 (0.2) 36.6
Total income tax (expense)/credit in consolidated income statement (0.7) 40.8
(1) See note 28 for an explanation of the prior year restatement.
Income tax is calculated at 25.0% (2024: 29.0%), based on corporation tax of
25.0%. Due to the profits falling below threshold for Residential Property
Developer Tax (RPDT) in both 2025 and 2024, the 25% corporation tax rate has
been used and not 29% as in previous years, 29% being the corporate tax rate
of 25% and RPDT of 4.0%. The effective tax rate for the year is 24.1% (2024:
28.0%), which is lower than (2024: lower than) the standard rate of UK
corporation tax, predominantly due to the availability of reliefs deductible
for tax purposes which reduces the tax charge on the profit. The Group expects
the effective tax rate to be more aligned to the standard rate of corporation
tax in future years due to the reducing impact of reliefs against higher
profits, and the additional charge to RPDT when breaching threshold.
2025 Restated(1
) 2024
Reconciliation of tax (expense)/credit in the year £m £m
Profit/(loss) before tax 2.9 (145.8)
Tax (charge)/credit on profit/(loss) at 25.0% (2024: 29.0%) (0.7) 42.3
Effects of:
Expenses not deductible for tax purposes (1.4) (1.9)
Enhanced tax deductions 0.3 0.3
Adjustment in respect of prior periods 0.8 0.5
Impact of tax rate change on losses carried back - (0.4)
Impact of RPDT annual allowance and adjustments 0.3 -
Total income tax (expense)/credit in consolidated income statement (0.7) 40.8
(1) See note 28 for an explanation of the prior year restatement.
RPDT is an additional tax on profits generated from residential property
development activity, in excess of an annual threshold and adjusting for
amounts disallowable under RPDT, such as interest expense. There is no charge
for RPDT in 2025 or 2024, since the Group has not generated the minimum level
of profit required before RPDT is incurred, however the RPDT impact of
available losses has been recognised in the reconciliation.
Expenses not deductible for tax purposes include business entertaining,
corporate action professional fees and other permanent disallowable expenses.
Enhanced tax deductions include items for which, under tax law, a corporation
tax deduction is available in excess of the amount shown in the consolidated
income statement. For example, land remediation enhanced allowances.
Adjustment in respect of prior periods reflects the difference between the
estimated consolidated income statement tax charge in the prior year and that
of the actual tax outcome.
In July 2023, the government enacted legislation to introduce a new
Multinational Top-up Tax and Domestic Top-up Tax as part of the UK adoption of
the Organisation for Economic Co-operation and Development Pillar Two Rules.
The new rules apply to the Group from the accounting year ended 31 October
2025.
The new rules intend to ensure that large corporate groups pay a minimum rate
of tax of 15%. The Group's activities are currently entirely UK based. The
2025 effective tax rate of 24.1% is lower than previous years largely due to
the availability of reliefs available for deduction against a lower profit
base. Given that the Group's tax rate is expected to be closer to the
statutory tax rate of 29% (being 25% UK corporation tax plus 4% RPDT) in
future years, it is not expected that the Group will be required to pay any
additional Domestic Top-up Tax.
The Group applies the exception, as set out in International Accounting
Standards (IAS) 12: Income Taxes, to the requirements regarding deferred tax
assets and liabilities related to Pillar Two income taxes.
9 DIVIDENDS
Dividends recognised as distributions to equity shareholders in the year:
2025 2024
£m £m
Current year interim dividend of 1.3 pence per share (2024: 1.0 pence per 3.3 2.6
share)
Prior year final dividend per share of 1.2 pence per share (2024: 11.5 pence 3.1 29.5
per share)
6.4 32.1
Dividends proposed as distributions to equity shareholders in the year:
2025 2024
£m £m
Final dividend for the year ended 31 October 2025 of 1.8 pence per share 4.6 3.1
(2024: 1.2 pence per share)
The proposed final dividend was approved by the Board on 28 January 2026 and,
in accordance with IAS 10: Events after the Reporting Period, has not been
included as a liability in this financial year. The final dividend will be
paid on 24 April 2026 to all ordinary shareholders on the Register of Members
on 27 March 2026.
10 EARNINGS/(LOSS) PER ORDINARY SHARE
Basic earnings/(loss) per share is calculated by dividing profit/(loss)
attributable to equity shareholders by the weighted average number of ordinary
shares in issue during the year. 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 year. 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 year. Only share options which have met their cumulative
performance criteria have been included in the dilution calculation. The
earnings and weighted average number of shares used in the calculations are
set out below.
Earnings/ (loss) Weighted average number of ordinary shares Per share amount
£m Number Pence
Year ended 31 October 2025
Basic earnings per share 2.2 256,532,825 0.9
Dilutive effect of share options 1,244,914 -
Diluted earnings per share 2.2 257,777,739 0.9
Year ended 31 October 2025 - pre-exceptional items
Adjusted basic earnings per share 19.9 256,532,825 7.8
Dilutive effect of share options 1,244,914 (0.1)
Adjusted diluted earnings per share 19.9 257,777,739 7.7
Year ended 31 October 2024 (restated(1))
Basic loss per share (105.0) 256,367,618 (41.0)
Dilutive effect of share options - -
Diluted loss per share (105.0) 256,367,618 (41.0)
Year ended 31 October 2024 - pre-exceptional items (restated(1))
Adjusted basic earnings per share 12.9 256,367,618 5.0
Dilutive effect of share options 1,608,047 -
Adjusted diluted earnings per share 12.9 257,975,665 5.0
(1) See note 28 for an explanation of the prior year restatement.
11 INTANGIBLE ASSETS
Goodwill 2025 2024
£m £m
Cost at beginning and end of the year 47.7 47.7
Accumulated impairment (18.7) (18.7)
At beginning and end of the year 29.0 29.0
Goodwill represents the excess of what was paid to acquire of CN Finance plc
on 24 March 2009 over the fair value of their net assets at the acquisition
date, less subsequent impairments. We assess whether goodwill is recoverable
by performing an impairment review annually or more frequently if events or
changes in circumstances indicate a potential impairment on the acquisition.
The goodwill is allocated to the whole group of cash generating units within
the Group, this is the lowest level within the entity at which the goodwill is
monitored for internal management purposes.
The recoverable amount is equal to the higher of value in use and fair value
less costs of disposal. The Directors have therefore assessed value in use,
being the present value of the forecast cash flows of the Group. These cash
flows are the key estimates in the value in use assessment. The forecast
considers the likelihood and scale of permitted development, forecast build
costs, forecast selling prices and site procurement in line with the Group's
committed strategic model and in line with current market conditions and
projections covering a period of 5 years to 2030 before applying a terminal
value. Cash flows related to uncommitted future restructurings and enhancement
capital expenditure are excluded from the projections. A pre-tax real discount
rate of 11.5% (2024: 12.4%) is applied to pre-tax cashflows, the discount rate
is based on an externally produced weighted average cost of capital range
estimate. A real terminal growth rate of 2.0% is applied based on the
long-term UK economic growth rate. Forecast gross margin over the assessment
period is based on past performance and latest forecasts likely to be
achievable in the short to medium term.
The recoverable value of the Group of cash-generating units is substantially
in excess of the carrying value of goodwill. Sensitivity analysis has been
undertaken by increasing the discount rates by 1.0%, reducing the forecast
profit margins across all sites within the Group of cash-generating unit by
1.0% and reducing the terminal growth rate by 1.0%. Given the significant
headroom, none of the sensitivities, either individually or in aggregate,
result in the fair value of the goodwill being reduced to below its current
book value amount.
12 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
Office buildings Other leases Total
£m £m £m
Cost
At 1 November 2023 8.6 4.8 13.4
Additions 2.8 4.3 7.1
Disposals (3.6) (1.4) (5.0)
At 31 October 2024 7.8 7.7 15.5
Additions 1.3 1.1 2.4
Disposals - (0.5) (0.5)
At 31 October 2025 9.1 8.3 17.4
Accumulated depreciation
At 1 November 2023 5.1 2.2 7.3
Charge for the year 1.2 1.1 2.3
Disposals (3.6) (1.4) (5.0)
At 31 October 2024 2.7 1.9 4.6
Charge for the year 0.9 2.5 3.4
Disposals - (0.4) (0.4)
At 31 October 2025 3.6 4.0 7.6
Net book value
At 31 October 2025 5.5 4.3 9.8
At 31 October 2024 5.1 5.8 10.9
At 31 October 2023 3.5 2.6 6.1
Other leases comprise motor vehicles and show home leases.
Lease liabilities included in the consolidated statement of financial position
2025 2024
£m £m
Non-current 7.0 8.8
Current 3.2 3.2
Total lease liabilities 10.2 12.0
Amounts recognised in the consolidated income statement
2025 2024
£m £m
Depreciation on right-of-use assets 3.4 2.3
Interest on lease liabilities 0.6 0.4
Amounts recognised in the consolidated cash flow statement
2025 2024
£m £m
Principal element of lease payments 4.0 1.9
Maturity of undiscounted contracted lease cash flows
2025 2024
£m £m
Less than one year 3.6 3.8
One to five years 6.0 8.2
More than five years 1.7 2.5
Total 11.3 14.5
13 INVESTMENTS
Investments in joint ventures
Below are the joint ventures that the Directors consider to be material to the
Group:
· Crest A2D (Walton Court) LLP: In January 2016, the Group entered into
a partnership agreement with A2 Dominion Developments Limited to procure and
develop a site in Surrey. The LLP commenced construction in 2019, with sales
completion forecast for 2026. The development is equally funded by both
parties by way of interest free loans. The Group performs the role of project
manager, for which it receives a project management fee.
· Crest Sovereign (Brooklands) LLP: In April 2019, the Group entered
into a partnership agreement with Sovereign Housing Association Limited to
develop a site in Bristol. The LLP commenced construction in 2019, with sales
completion forecast for 2027. The LLP is equally funded by both parties, who
will receive interest on loaned sums. The Group performs the role of project
manager, for which it receives a project management fee.
· Crest Peabody (Turweston) LLP: In September 2023, the Group entered
into a partnership agreement with the Peabody Trust to develop a site in
Buckinghamshire. The LLP is expecting to commence construction in 2026, with
sales completion forecast for 2032. The development is equally funded by both
parties by way of interest free loans. The Group performs the role of project
manager, for which it will receive a project management fee and a sales and
marketing fee.
2025 2024
Total investments in joint ventures £m £m
Crest A2D (Walton Court) LLP - 1.3
Crest Sovereign (Brooklands) LLP 8.4 5.9
Crest Peabody (Turweston) LLP 0.2 0.2
Other non-material joint ventures 0.9 1.2
Total investments in joint ventures 9.5 8.6
All material joint ventures have their place of business in Great Britain, are
50% owned and are accounted for using the equity method, in line with the
prior year. See note 27 for further details.
Summarised financial information for joint ventures
The tables below provide financial information for joint ventures that are
material to the Group. The information disclosed reflects the amounts
presented in the financial statements of the relevant joint ventures, where
the Group retains an interest, and not the Group's share of those amounts.
2025 Crest A2D (Walton Crest Crest
Court) LLP Sovereign (Brooklands) LLP Peabody (Turweston) LLP
£m £m £m
Summarised statement of financial position
Current assets:
Cash and cash equivalents 0.7 0.5 0.1
Inventories 4.4 21.5 24.2
Other current assets 0.7 5.1 -
Current liabilities:
Financial liabilities (4.6) (6.2) (4.5)
Other current liabilities (0.1) (4.1) -
Non-current liabilities:
Financial liabilities (5.9) - (19.4)
Net (liabilities)/assets (4.8) 16.8 0.4
Reconciliation to carrying amounts
Opening net assets at 1 November 2024 2.6 11.8 0.4
(Loss)/profit for the year (7.7) 5.0 (0.4)
Capital contribution reserve 0.3 - 0.4
Closing net (liabilities)/assets at 31 October 2025 (4.8) 16.8 0.4
Group's share of closing net (liabilities)/assets at 31 October 2025 (2.4) 8.4 0.2
Losses recognised against provision/receivable from joint venture (note 16) 2.4 - -
Group's share in joint venture - 8.4 0.2
Amount due to the Group (note 16) 2.1 1.0 10.6
Summarised income statement for the 12 months ended 31 October 2025
Revenue 14.5 32.9 -
Expenditure (22.0) (27.4) -
Operating (loss)/profit before finance expense (7.5) 5.5 -
Finance expense (0.2) (0.5) (0.4)
Pre-tax and post-tax (loss)/profit for the year (7.7) 5.0 (0.4)
Group's share in joint venture (loss)/profit for the year (3.9) 2.5 (0.2)
2024 Crest A2D (Walton Crest Crest
Court) LLP Sovereign (Brooklands) LLP Peabody (Turweston) LLP
£m £m £m
Summarised statement of financial position
Current assets:
Cash and cash equivalents 0.3 0.3 0.1
Inventories 19.6 19.5 1.1
Other current assets 8.1 4.2 5.1
Current liabilities:
Financial liabilities (21.8) (7.4) (5.9)
Other current liabilities (3.6) (4.8) -
Net assets 2.6 11.8 0.4
Reconciliation to carrying amounts
Opening net assets at 1 November 2023 4.5 9.8 -
(Loss)/profit for the year (2.4) 2.0 (0.2)
Capital contribution reserve 0.5 - 0.6
Closing net assets at 31 October 2024 2.6 11.8 0.4
Group's share of closing net assets at 31 October 2024 1.3 5.9 0.2
Group's share in joint venture 1.3 5.9 0.2
Amount due to the Group (note 16) 11.1 3.7 6.0
Summarised income statement for the 12 months ended 31 October 2024
Revenue 56.1 15.4 -
Expenditure (57.5) (13.1) -
Operating (loss)/profit before finance expense (1.4) 2.3 -
Finance expense (1.0) (0.3) (0.2)
Pre-tax and post-tax (loss)/profit for the year (2.4) 2.0 (0.2)
Group's share in joint venture (loss)/profit for the year (1.2) 1.0 (0.1)
The aggregate information of joint ventures that are not individually material
is as follows:
2025 2024
£m £m
Share of post-tax results for the year (0.7) 0.2
Share of total comprehensive (expense)/income (0.7) 0.2
Subsidiary undertakings
The subsidiary undertakings that are significant to the Group and traded
during the year are set out below. The Group's interest is in respect of
ordinary issued share capital that is wholly owned and all the subsidiary
undertakings are incorporated in Great Britain and are included in the
consolidated financial statements.
Subsidiary
Nature of business
CN Finance
plc
Holding company (including Group financing)
Crest Nicholson
plc
Holding company
Crest Nicholson Operations
Limited
Residential and commercial property development
A full list of the Group's undertakings including subsidiaries and joint
ventures is set out in note 27.
14 DEFERRED TAX
Deferred tax assets Inventories fair value Pension surplus Share-based payments Tax losses Other temporary differences Total
£m £m £m £m £m £m
At 1 November 2023 (restated(1)) 1.1 (2.5) 0.2 0.7 2.0 1.5
Consolidated income statement movements (restated(1)) (0.2) (0.3) - 36.6 0.5 36.6
Equity movements - (2.1) 0.1 - - (2.0)
At 31 October 2024 (restated(1)) 0.9 (4.9) 0.3 37.3 2.5 36.1
Consolidated income statement movements (0.1) - 0.1 0.3 (0.5) (0.2)
Equity movements - 1.5 - - - 1.5
At 31 October 2025 0.8 (3.4) 0.4 37.6 2.0 37.4
(1) See note 28 for an explanation of the prior year restatement.
Total deferred tax credited to equity in the year is £1.5m (2024: £2.0m).
Deferred tax assets expected to be recovered in less than 12 months is £7.6m
(2024: £9.4m), and in more than 12 months is £33.2m (2024: £31.6m(1)).
Deferred tax losses have been recognised based on current trading forecasts
for the next six years. Deferred tax liabilities are expected to be settled in
more than 12 months.
At the consolidated statement of financial position date the substantively
enacted future corporation tax rate is 25.0%. RPDT became effective from 1
April 2022 and is an additional tax at 4.0% of profits generated from
residential property development activity, in excess of an annual threshold.
Deferred tax assets and liabilities have been evaluated using the applicable
tax rates when the asset is forecast to be realised and the liability is
forecast to be settled. The Group has no material unrecognised deferred tax
assets.
15 EMPLOYEE BENEFITS
(a) Retirement benefit obligations
Defined contribution scheme
The Group operates a defined contribution scheme for new employees. The assets
of the scheme are held separately from those of the Group in an independently
administered fund. The contributions to this scheme for the year were £2.8m
(2024: £2.6m). At the consolidated statement of financial position date there
were no outstanding or prepaid contributions (2024: £nil).
Defined benefit scheme
The Company sponsors the Crest Nicholson Group Pension and Life Assurance
Scheme (Scheme), a funded defined benefit pension scheme in the UK. The Scheme
is administered within a trust that is legally separate from the Company. A
Trustee company (Trustee) is appointed by the Company and the Company and the
Scheme's members appoint Trustee Directors. The Trustee is appointed to act in
the interest of the Scheme and all relevant stakeholders, including the
members and the Company. The Trustee is also responsible for the investment of
the Scheme's assets.
The Scheme closed to future service accrual from 30 April 2010. Accrued
pensions in relation to deferred members are revalued at statutory revaluation
in the period before retirement. Benefits also increase either at a fixed rate
or in line with inflation while in payment. The Scheme provides pensions to
members on retirement and to their dependants on death.
The Company pays contributions to improve the Scheme's funding position as
determined by regular actuarial valuations. The Trustee is required to use
prudent assumptions to value the liabilities and costs of the Scheme, whereas
the accounting assumptions must be best estimates.
Responsibility for meeting any deficit within the Scheme lies with the Company
and this introduces a number of risks for the Company. The major risks are:
interest rate risk, inflation risk, investment risk and longevity risk. The
Company and Trustee are aware of these risks and manage them through
appropriate investment and funding strategies.
The Scheme is subject to regular actuarial valuations, which are usually
carried out every three years. The last actuarial valuation was carried out
with an effective date of 31 January 2024. These actuarial valuations are
carried out in accordance with the requirements of the Pensions Act 2004 and
so include deliberate margins for prudence. This contrasts with these
accounting disclosures, which are determined using best estimate assumptions.
The results of the actuarial valuation as at 31 January 2024 have been
projected to 31 October 2025 by a qualified independent actuary and used to
derive the present value of scheme liabilities. The figures in the following
disclosure were measured using the Projected Unit Method.
The investment strategy in place for the Scheme is to invest in a mix of
return-seeking, index-linked and fixed-interest investments. As at 31 October
2025, the allocation of the Scheme's invested assets was 21% in return-seeking
investments, 71% in liability-driven investing, 5% in cash and 3% in insured
annuities. Details of the investment strategy can be found in the Scheme's
Statement of Investment Principles, which the Trustee updates as their policy
evolves.
It should also be noted that liabilities relating to insured members of the
Scheme have been included as both an asset and a liability.
During the year, a review of historical scheme documentation identified
inconsistencies in the basis of estimating obligations and underlying scheme
documentation. A charge of £2.2m has been recognised as an exceptional cost
in the year. See note 4 for further details.
Following the High Court judgement in the Lloyds Banking Group Pensions
Trustees Limited v Lloyds Bank plc and others (2018) case, overall pension
benefits now need to be equalised to eliminate inequalities between males and
females in Guaranteed Minimum Pensions (GMP). The Company has allowed for this
in its financial statements by adding a 1.0% (2024: 1.0%) reserve, reflecting
an approximate estimate of the additional liability.
In June 2023, the High Court judged that amendments made to the Virgin Media
scheme were invalid because the scheme's actuary did not provide the
associated Section 37 certificate. The High Court's decision has wide-ranging
implications, affecting other schemes that were contracted out on a
salary-related basis, and which made amendments between April 1997 and April
2016.
The Scheme was contracted out until 29 February 2016 and amendments were made
during the relevant period. As such the ruling could have implications for
the Group. Following the Court of Appeal upholding the 2023 High Court ruling
on 25 July 2024, the Trustee initiated the process of investigating any
potential impact for the Scheme. As part of this process the Trustee is also
considering certain other historical amendments and the manner in which they
were applied.
As the detailed investigation is in progress, the Group considers that the
amount of any potential impact on the defined benefit obligation cannot be
confirmed and/or measured with sufficient reliability at the 2025 year end. We
are therefore disclosing this issue as a potential contingent liability at 31
October 2025 and will review again in 2026 based on the findings of the
detailed investigation.
2025 2024
£m £m
The amounts recognised in the consolidated statement of financial position are
as follows:
Fair value of scheme assets 138.5 145.1
Present value of scheme liabilities (124.8) (125.6)
Net surplus amount recognised at year end 13.7 19.5
Deferred tax liability recognised at year end within non-current balances (3.4) (4.9)
The retirement benefit surplus recognised in the consolidated statement of
financial position represents the surplus of the fair value of the Scheme's
assets over the present value of the Scheme's liabilities.
The rules of the Scheme provide the Group with an unconditional right to a
refund of surplus assets on the gradual settlement of the Scheme's
liabilities. In the ordinary course of business, the Scheme Trustee has no
unilateral right to wind the Scheme up. Based on these rights and in
accordance with International Financial Reporting Interpretations Committee
14, the Group has made the judgement that the net surplus in the Scheme is
recognised in full.
At the consolidated statement of financial position date, the corporation tax
rate is 25.0%. The deferred tax liability on the retirement benefit surplus
has been evaluated applying this rate. RPDT of 4.0% is applicable to
residential property development trading income only.
Amounts recognised in comprehensive
income:
The current and past service costs, settlements and curtailments, together
with the interest income for the year are included in the consolidated
statement of comprehensive income. Remeasurements of the net defined benefit
asset are included in the consolidated statement of comprehensive income.
2025 2024
£m £m
Service cost
Administrative expenses (0.7) (0.7)
Exceptional past service cost (2.2) -
Interest income 1.0 0.6
Recognised in the consolidated income statement (1.9) (0.1)
2025 2024
£m £m
Remeasurements of the net surplus
(Loss)/return on Scheme assets (6.5) 3.2
Gains/(losses) arising from changes in financial assumptions 3.9 (4.6)
(Losses)/gains arising from changes in demographic assumptions (0.2) 3.9
Experience (losses)/gains (1.1) 6.0
Actuarial (losses)/gains recorded in the consolidated statement of (3.9) 8.5
comprehensive income
Total defined benefit scheme (losses)/gains (5.8) 8.4
2025 2024
% %
The principal actuarial assumptions used were:
Liability discount rate 5.4 5.3
Inflation assumption - Retail Price Index 2.8 3.2
Inflation assumption - Consumer Price Index 2.4 2.7
Revaluation of deferred pensions 2.4 2.7
Increases for pensions in payment:
Benefits accrued in excess of GMP pre-1997 3.0 3.0
Benefits accrued after 5 April 1997 and before 1 September 1997 3.5 3.0
Benefits accrued post 1 September 1997 2.7 3.0
Proportion of employees opting for early retirement - -
Proportion of employees commuting pension for cash 100.0 100.0
Mortality assumption - pre-retirement AC00 AC00
Mortality assumption - male and female post-retirement Male/female pensioners: 103%/103% S3PA base tables. Male/female pensioners: 103%/103% S3PA base tables.
Male/female dependants: 103%/100% S3DA base tables. Male/female dependants: 103%/100% S3DA base tables.
Projected in line with CMI 2024 projections (H=1.0), an initial additional of Projected in line with CMI 2023 core projections and core parameters (Sk =
0.25% and a long-term improvement rate of 1.25% 7.0, an initial addition of 0.25%, w2020 = w2021 = 0%, and w2022 = w2023 =
15%) and a long-term improvement rate of 1.25%
2025 2024
Years Years
Future expected lifetime of current pensioner at age 65
Male aged 65 at year end 21.8 21.4
Female aged 65 at year end 24.1 23.9
Future expected lifetime of future pensioner at age 65
Male aged 45 at year end 23.0 22.7
Female aged 45 at year end 25.5 25.3
2025 2024
£m £m
Changes in the present value of assets over the year
Fair value of assets at beginning of the year 145.1 141.3
Interest income 7.5 7.7
Return on assets (excluding amount included in net interest income) (6.5) 3.2
Contributions from the employer - 1.1
Benefits paid (6.9) (7.5)
Administrative expenses (0.7) (0.7)
Fair value of assets at end of the year 138.5 145.1
Actual return on assets over the year 1.0 10.9
2025 2024
£m £m
Changes in the present value of liabilities over the year
Liabilities at beginning of the year (125.6) (131.3)
Interest cost (6.5) (7.1)
Remeasurement gains/(losses)
Gains/(losses) arising from changes in financial assumptions 3.9 (4.6)
(Losses)/gains arising from changes in demographic assumptions (0.2) 3.9
Experience (losses)/gains (3.3) 6.0
Benefits paid 6.9 7.5
Liabilities at end of the year (124.8) (125.6)
2025 2024
£m £m
Split of the Scheme's liabilities by category of membership
Deferred pensioners (45.3) (47.2)
Pensions in payment (79.5) (78.4)
(124.8) (125.6)
2025 2024
Years Years
Average duration of the Scheme's liabilities at end of the year 11.0 11.0
This can be subdivided as follows:
Deferred pensioners 15.0 15.0
Pensions in payment 9.0 9.0
2025 2024
£m £m
Major categories of Scheme assets
Return seeking
Overseas equities - 8.6
Other (hedge funds, multi-asset strategy and absolute return funds) 28.6 40.1
28.6 48.7
Debt instruments
Corporates 22.8 35.8
Liability-driven investing 76.4 38.4
99.2 74.2
Other
Cash (including liquidity fund) 6.9 18.3
Insured annuities 3.8 3.9
10.7 22.2
Total market value of assets 138.5 145.1
The Scheme has a Liability-Driven Investment (LDI) strategy designed to
closely align investment returns with movements in the Scheme's liabilities on
a low-risk basis, thereby reducing the volatility of the Scheme's funding
level. The use of LDI brings liquidity risk as the demand for additional
collateral to maintain the Scheme's hedging can change over short periods when
interest rates change.
£nil (2024: £nil) of Scheme assets have a quoted market price in active
markets, £126.3m (2024: £132.1m) of Scheme assets have valuation inputs
other than quoted market prices, including quoted market prices for similar
assets in active markets, £5.4m (2024: £6.2m) of Scheme assets are
instruments that are valued based on quoted prices for similar instruments but
for which significant unobservable adjustments or assumptions are required to
reflect the differences between the instruments, and £6.8m (2024: £6.8m) of
Scheme assets are cash at bank and insured pension annuities.
The Scheme has no investments in the Group or in property occupied by the
Group.
UK legislation requires that pension schemes are funded prudently. The last
funding valuation of the Scheme was carried out by a qualified actuary as at
31 January 2024 and showed a surplus of £8.1m. The Company ceased paying
deficit contributions in July 2024.
Sensitivity of the liability value to changes in the principal
assumptions
The sensitivities included are consistent with those shown in prior years and
show the change in the consolidated statement of financial position as at 31
October 2025 as a result of a change to the key assumptions.
If the discount rate was 0.25% higher/(lower), the Scheme liabilities would
decrease by £3.2m/(increase by £3.2m) if all the other assumptions remained
unchanged.
If the inflation assumption was 0.25% higher/(lower), the Scheme liabilities
would increase by £1.8m/(decrease by £1.8m) if all the other assumptions
remained unchanged.
If life expectancies were to increase by one year, the Scheme liabilities
would increase by £4.7m if all the other assumptions remained unchanged.
16 TRADE AND OTHER RECEIVABLES
Trade and other receivables before expected credit loss Expected credit loss Trade and other receivables after expected credit loss Trade and other receivables before expected credit loss Expected credit loss Trade and other receivables after expected credit loss
2025 2025 2025 2024 2024 2024
£m £m £m £m £m £m
Non-current
Trade receivables 8.2 (0.1) 8.1 12.6 - 12.6
Due from joint ventures 10.3 - 10.3 - - -
Other receivables 2.6 - 2.6 2.0 - 2.0
21.1 (0.1) 21.0 14.6 - 14.6
Current
Trade receivables 89.2 (0.8) 88.4 51.0 (1.4) 49.6
Contract assets - - - 7.7 (0.1) 7.6
Due from joint ventures 2.1 (0.1) 2.0 22.7 (0.1) 22.6
Other receivables 18.9 (0.2) 18.7 15.9 (0.1) 15.8
Prepayments 2.2 - 2.2 2.5 - 2.5
112.4 (1.1) 111.3 99.8 (1.7) 98.1
Non-current and current 133.5 (1.2) 132.3 114.4 (1.7) 112.7
Trade receivables and contract assets mainly comprise contractual amounts due
from housing associations, bulk sale purchasers and land sales to other
housebuilders. Other receivables mainly comprise two development agreements
where the Group is entitled to recovery of costs incurred under the agreement.
Current trade receivables of £14.2m have been collected as of 1 January 2026
(2024: £17.7m have been collected as of 1 January 2025). The remaining
balance is due according to contractual terms. At the consolidated statement
of financial position date, the difference between the fair value of amounts
due from joint ventures and nominal value is £0.2m (2024: £0.2m).
Amounts due from joint ventures comprises funding provided on six (2024: four)
joint venture developments which are being project managed by the Group and
are repayable according to contractual arrangements. Amounts due from joint
ventures are stated net of losses of £3.4m (2024: £0.9m). See note 13 for
additional details on the Group's interests in joint ventures.
Movements in total loss allowance for expected credit losses
2025 2024
£m £m
At beginning of the year 1.7 1.1
Charged in the year 0.5 0.7
Released in the year (1.0) (0.1)
At end of the year 1.2 1.7
Maturity of non-current receivables:
2025 2024
£m £m
Due between one and two years 10.7 14.6
Due between two and five years 10.3 -
Due after five years - -
21.0 14.6
17 INVENTORIES
2025 Restated(1
) 2024
£m £m
Land(2) 618.5 681.6
Work-in-progress(2) 335.2 314.4
Completed buildings including show homes 79.0 102.9
Part exchange inventories 23.4 30.2
1,056.1 1,129.1
(1) See note 28 for an explanation of the prior year restatement.
(2) The 2024 comparative amounts have been represented for land and
work-in-progress. This resulted in a representation of £11.4m from
work-in-progress to land.
Total inventories of £507.9m (2024: £499.7m) were recognised as cost of
sales in the year.
Inventories are stated after a net realisable value (NRV) provision of £15.7m
(2024: £22.3m), and it is currently forecast nearly half will be used in the
next financial year.
During the year £3.7m (2024: £14.2m) additional NRV was charged, mainly on
legacy developments.
Movements in the NRV provision in the current and prior year are shown below:
2025 2024
£m £m
At beginning of the year 22.3 20.2
NRV charged in the year 3.7 14.2
NRV used in the year (10.3) (12.1)
Total movement in NRV provision in the year (6.6) 2.1
At end of the year 15.7 22.3
18 MOVEMENT IN NET (DEBT)/CASH
2025 Movement 2024
£m £m £m
Cash and cash equivalents 125.0 51.2 73.8
Bank loans and senior loan notes (163.2) (80.9) (82.3)
Net (debt)/cash (38.2) (29.7) (8.5)
19 INTEREST-BEARING LOANS AND BORROWINGS
2025 2024
£m £m
Non-current
Senior loan notes 65.0 65.0
Senior loan notes issue costs (0.9) (1.8)
64.1 63.2
Current
Senior loan notes - 20.0
Revolving credit facility 100.0 -
Revolving credit and senior loan notes issue costs (0.9) (0.9)
99.1 19.1
There were undrawn amounts of £150.0m (2024: £250.0m) under the RCF at the
consolidated statement of financial position date. During the year, the Group
had average drawings of £87.8m (2024: £21.3m) under the RCF. The RCF is
categorised as current or non-current according to the contractual repayment
date of amounts drawn down at the balance sheet date, in accordance with the
terms of the RCF new drawings can be made up to the £250m facility limit
until the facility expires. See note 23 for additional disclosures.
20 TRADE AND OTHER PAYABLES
2025 2024
£m £m
Non-current
Land payables on contractual terms 12.9 31.8
Other payables 1.5 1.7
Accruals and deferred income 9.4 8.8
23.8 42.3
Current
Land payables on contractual terms 60.3 99.8
Other trade payables 88.3 67.8
Contract liabilities 10.2 6.9
Amounts due to joint ventures - 0.1
Taxes and social security costs 7.7 1.7
Other payables 1.0 1.1
Accruals and deferred income 101.8 107.8
269.3 285.2
Land payables are recognised from the date of unconditional exchange of
contracts, and represent amounts due to land vendors for development sites
acquired. All land payables are due according to contractual terms. Where land
is purchased on deferred settlement terms then the land and the land payable
are discounted to their fair value using the effective interest method in
accordance with IFRS 9. The difference between the fair value and the nominal
value is amortised over the deferment period, with the financing element being
charged as an interest expense through the consolidated income statement. As
at 31 October 2025 the difference between the fair value and nominal value of
land payables is £1.4m (2024: £3.7m).
Contract liabilities represent payments on account, received from customers,
in excess of billable work-in-progress on affordable and other sales in bulk
on contracts in which revenue is recognised over time.
Amounts due to joint ventures are interest free and repayable on demand. See
note 13 for additional details on the Group's interests in joint ventures.
Other trade payables mainly comprise amounts due to suppliers and
subcontractor retentions. Suppliers are settled according to agreed payment
terms and subcontractor retentions are released for payment once the retention
condition has been satisfied.
Accruals are mainly work-in-progress related where work has been performed but
not yet invoiced and completed site accruals. Completed site accruals are
£20.4m (2024: £21.8m) and relate to the cost to complete outstanding site
infrastructure and amenities on completed developments. Included within the
completed site accruals is £1.6m exceptional charge in the year. See note 4
for additional disclosure.
21 PROVISIONS
Combustible materials Legal provision Completed site provisions Joint ventures Other provisions Total
£m £m £m £m £m £m
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
Utilised in the year (33.3) - (4.0) - - (37.3)
Released in the year - - (3.7) - (0.2) (3.9)
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
Provided in the year 39.9 0.9 2.7 0.3 0.9 44.7
Utilised in the year (62.8) - (6.5) - (0.5) (69.8)
Released in the year (29.3) - (5.4) - - (34.7)
Transfers (3.7) 3.7 - - - -
Imputed interest 9.4 - - - - 9.4
At 31 October 2025 202.8 17.6 14.4 0.3 1.1 236.2
At 31 October 2025
Non-current 106.9 - 7.2 0.3 0.7 115.1
Current 95.9 17.6 7.2 - 0.4 121.1
202.8 17.6 14.4 0.3 1.1 236.2
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
Combustible materials
In March 2023 the Group signed the DLUHC (now MHCLG) 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. A
combination of BSF costed information, other external information, and
internal assessments, known at the balance sheet date, are considered when
estimating the provision.
The Group has now performed external wall and internal fire safety assessments
for all of the identified buildings within the scope of the Developer
Remediation Contract other than two, where access has now been granted
following Governmental support. The buildings identified have been regularly
updated during 2025 as surveys concluded that no further works were required
on certain buildings, and a small number of additional buildings were
identified as further investigative exercises took place.
In the previous year the Group recorded a combustible materials charge of
£131.7m, mainly relating to the estimated costs of non-surveyed buildings at
that time based on the increased level of information that the Group had
gathered to reasonably estimate any provision required. During the year, as
the number of surveyed buildings nears completion, this estimate has been
updated reflecting the outcome of surveys, along with changes in forecast
build cost scope and price over the duration of remediation for previously
surveyed buildings. This has resulted in a net charge in the year of £10.6m,
comprising a provision in the year of £39.9m, and a release of £29.3m. The
release primarily relates to buildings where surveys performed in the year
confirmed that no remedial works are required. While nearly all buildings have
now been surveyed, detailed cost plans and work tenders need to be finalised
for approximately 30% of the buildings and the estimate for these buildings
has been made in a similar manner to the prior year, updated for the latest
cost experience of the Group. The combustible materials net charge of £12.8m
per note 4 includes a £2.2m professional fees charge incurred by the Group in
pursing third parties where it has a contractual right of recourse. The
provision is measured on a nominal basis with an assumed level of inflation
over the period that the remediation will take place. A discount rate of 3.8%
(2024: 4.4%) based on a UK gilts rates of equivalent cashflow profiles to that
estimated of the provision has been applied, the reduction to the discount
rate increased the discounted provision resulting in a charge to cost of sales
of £1.1m in the period. The discounting applied to the provision unwinds to
the consolidated income statement as an exceptional finance expense over the
expected duration of the provision.
The Group spent £62.8m in the year on investigative costs and remediation
works, including balcony and cladding-related works. The Group expects to have
completed any required remediation within a five-year period, using £95.9m of
the remaining provision within one year, which includes £19.1m repayable to
the BSF. 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 will continue to assess the magnitude and utilisation of this
provision in future reporting periods and the Group recognises that required
remediation works could be subject to further inflationary pressures and cash
outflows. If forecast remediation costs on buildings currently provided for
are 10.0% higher/lower than provided, the pre-tax exceptional items charge in
the consolidated income statement would be £20.3m higher/lower.
During the year, £3.7m contained within the opening combustible materials
provision was transferred to legal provisions. This provision relates to a
building which has previously been remediated by the freeholder who has lodged
a claim against the Group to recover costs of the remediation.
The Group is continuing to review the recoverability of costs incurred from
third parties where it has a contractual right of recourse. In the year
£12.4m was recovered from third parties by the Group. Recoveries are not
recognised until they are virtually certain to be received. See note 4 for
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
Directors' 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 two parties agreed a heads of terms in October 2025, the
terms of which are reflected in the provision as at 31 October 2025.
Following the year end a settlement was reached with the claimant in respect
of the building damaged by the fire in 2021 and a remedial works agreement was
agreed with respect to other buildings identified with defects through this
case. The final terms of the settlement and remedial works agreement are
consistent with the amounts provided for at the balance sheet date, although
the final cost of remedial works will continue to be subject to estimation
uncertainty.
During the year, £3.7m contained within the opening combustible materials
provision was transferred to legal provisions. This provision relates to a
building which has previously been remediated by the freeholder who has lodged
a claim against the Group to recover costs of the remediation.
Completed site provisions
During the first half of the prior financial year, the Group became aware of
certain build defects initially identified on four sites that were completed
prior to 2019 when the Group closed its Regeneration and London divisions. The
Group has undertaken a comprehensive review of all completed sites in
association with third-party consultants.
The forecast costs to remedy build defects on these sites is £14.4m (2024:
£23.6m). Discounting has not been applied to the balance as the impact would
not be material. Included within the £14.4m completed site provisions is a
£0.1m exceptional charge in the year. See note 4 for consolidated income
statement disclosure.
22 SHARE CAPITAL
Shares Nominal value Share capital Share premium account
issued
Number Pence £ £
Ordinary shares as at 1 November 2023 and 31 October 2024 256,920,539 5 12,846,027 74,227,216
Shares issued during the year 12,739 5 637 21,118
Ordinary shares as at 31 October 2025 256,933,278 5 12,846,664 74,248,334
Ordinary shares are issued and fully paid.
Own shares held
The Group and Company holds shares within the employee share ownership trust
(ESOT) for participants of certain share-based payment schemes. These are held
within retained earnings. During the year no shares were purchased by the ESOT
(2024: 250,000 shares were purchased by the ESOT for £0.5m) and the ESOT
transferred 282,313 (2024: 248,124) shares to employees and Directors to
satisfy options. In 2024, 21,968 shares as part of Martyn Clark's share-based
awards from previous employment in Crest Nicholson Holdings plc were granted
on joining at a cost of £0.1m. The number of shares held within the ESOT and
on which dividends have been waived, at 31 October 2025 was 297,851 (2024:
580,164). These shares are held within the financial statements in equity at a
cost of £0.9m (2024: £1.4m). The market value of these shares at 31 October
2025 was £0.5m (2024: £1.0m).
23 FINANCIAL RISK MANAGEMENT
The Group's financial instruments comprise cash, trade and other receivables,
financial assets at fair value through profit and loss, bank loans, senior
loan notes, and trade and other payables. The main objective of the Group's
policy towards financial instruments is to maximise returns on the Group's
cash balances, manage the Group's working capital requirements and finance the
Group's ongoing operations.
Capital management
The Group's policies seek to match long-term assets with long-term finance and
ensure that there is sufficient working capital to meet the Group's
commitments as they fall due, comply with the loan covenants and continue to
sustain trading.
The Group's capital comprises shareholders' funds and net debt.
The Group seeks to manage its capital through control of expenditure, dividend
payments and through its banking facilities. The revolving credit facility
(RCF) and senior loan notes impose certain minimum capital requirements on the
Group. These requirements are integrated into the Group's internal forecasting
process and are regularly reviewed. The Group has operated, and is forecasting
to operate, within these capital requirements.
There were undrawn amounts of £150.0m (2024: £250.0m) under the RCF at the
consolidated statement of financial position date.
On 31 October 2024 the Group signed an amendment and extension to the RCF.
This amendment extended the facility to run through to October 2027 and
redefined margin from 1.85% to 2.15%. Therefore, from 1 November 2024 the RCF
carried interest at SONIA plus 2.15%. Subsequently, on 21 November 2025, the
Group entered into a further new amendment and extension to the RCF. This
extended the facility to October 2029 and increased the margin from 2.15% to
3.0%.
Both the senior loan notes and the RCF are subject to three covenants that are
assessed through the year. They are gearing being of a maximum of 70%,
interest cover being a minimum of three times against adjusted earnings before
interest and tax, and consolidated tangible net worth being not less than
£500m, all based on measures as defined in the facilities agreements which
are adjusted from the equivalent IFRS amounts. As at the statement of
financial position date, gearing was 16.1%, interest cover was 4.1 times and
consolidated tangible net worth was £689.1m. See the going concern assessment
in note 1 for forecast future covenant performance and sensitivity of
covenants in a severe but plausible downside scenario.
The RCF facility is sustainability linked with the margin applicable varying
by plus or minus 0.05% depending on the Group's progress against four targets.
These targets and 2025 results are presented below:
· Reduction in absolute scope 1 and 2 GHG emissions in line with our
science-based targets. In 2025 this target was met.
· Increasing the number of our suppliers engaging with the Supply Chain
Sustainability School. In 2025 this target was met.
· Reduction in GHG emissions associated with the use of our homes. In
2025 this target was met.
· Increasing the number of our employees in trainee positions and on
training programmes. In 2025 this target was not met.
As a result of meeting 3 out of 4 of the metrics for 2025 the margin on the
RCF will be amended down by 0.025% (2024: 0.025% based on achieving 3 out of 4
targets) from the date of submission of the compliance documents for the
facility.
Financial risk
As virtually all of the operations of the Group are in sterling, there is no
direct currency risk, and thus the Group's main financial risks are credit
risk, liquidity risk and market interest rate risk. The Board is responsible
for managing these risks and the policies adopted are as set out here.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or other
counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Group's cash deposits, as most
receivables are secured on land and buildings.
The Group has cash deposits of £125.0m (2024: £73.8m) which are held by the
providers of its banking facilities. The Group has bank facilities of £250.0m
expiring in October 2029; as at 31 October 2025 with £150.0m remaining
available for drawdown under such facilities. These are primarily provided by
HSBC Bank Plc, Barclays Bank Plc, Lloyds Bank Plc and NatWest Group Plc, being
four of the UK's leading financial institutions. The security and suitability
of these banks is monitored by the treasury function on a regular basis.
Financial assets at fair value through profit and loss of £2.8m (2024:
£3.3m) are receivables on extended terms granted as part of a sales
transaction and are secured by way of a legal charge on the relevant property
and therefore credit risk is considered low.
The carrying value of trade and other receivables is mainly contractual
amounts due from housing associations, bulk sale purchasers, land sales to
other housebuilders and a development agreement where the Group is entitled to
recovery of costs incurred under the agreement, and equates to the Group's
exposure to credit risk which is set out in note 17. Amounts due from joint
ventures of £12.3m (2024: £22.6m) is funding provided on six (2024: four)
joint venture developments which are being project managed by the Group and
are subject to contractual arrangements. The Group has assessed the expected
credit loss impact on the carrying value of trade and other receivables as set
out in note 16. Within trade receivables the other largest single amount
outstanding at 31 October 2025 is £12.9m (2024: £7.6m) which is within
agreed terms.
The Group considers the credit quality of financial assets that are neither
past due nor impaired as good. In managing risk the Group assesses the credit
risk of its counterparties before entering into a transaction. No credit
limits were exceeded during the reporting year, and the Directors do not
expect any material losses from non-performance of any counterparties,
including in respect of receivables not yet due. No individually material
financial assets are past due, or are considered to be impaired as at the
consolidated statement of financial position date (2024: none).
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its
financial obligations as they fall due. Cash flow forecasts are produced to
monitor the expected cash flow requirements of the Group against the available
facilities. The principal risks within these cash flows relate to achieving
the level of sales volume and prices in line with current forecasts.
The following are the contractual maturities of the financial liabilities of
the Group at 31 October 2025:
Carrying value Contractual cash flows Within 1 year Within Within More than 3 years
1 to 2 years 2 to 3 years
2025 £m £m £m £m £m £m
Senior loan notes 65.0 71.0 2.4 52.4 - 16.2
Revolving credit facility 100.0 100.0 100.0 - - -
Financial liabilities carrying no interest 276.5 277.6 246.2 26.3 1.5 3.6
At 31 October 2025 441.5 448.6 348.6 78.7 1.5 19.8
2024
Senior loan notes 85.0 94.1 23.1 2.4 52.4 16.2
Financial liabilities carrying no interest 326.7 332.8 280.8 36.1 13.4 2.5
At 31 October 2024 411.7 426.9 303.9 38.5 65.8 18.7
Market interest rate risk
Market interest rate risk reflects the Group's exposure to fluctuations to
interest rates in the market. The risk arises because the Group's RCF is
subject to floating interest rates based on SONIA. The Group accepts a degree
of interest rate risk, and monitors rate changes to ensure they are within
acceptable limits and in line with banking covenants. The Group has partially
mitigated this risk by placing £65.0m of senior loan notes which are at fixed
interest rates. For the year ended 31 October 2025 it is estimated that an
increase of 1.0% in interest rates applying for the full year would decrease
the Group's profit before tax and equity by £0.9m (2024: £0.2m).
The interest rate profile of the financial liabilities of the Group was:
2025 2024
£m £m
Sterling bank borrowings, loan notes and long-term creditors
Financial liabilities carrying interest 165.0 85.0
Financial liabilities carrying no interest 276.5 326.7
441.5 411.7
For financial liabilities that have no interest payable but for which imputed
interest is charged, consisting of land payables and lease liabilities, the
weighted average period to maturity is 13 months (2024: 14 months).
2025 2024
£m £m
The maturity of the financial liabilities is:
Repayable within one year 345.8 297.6
Repayable between one and two years 76.0 34.5
Repayable between two and five years 18.1 77.0
Repayable after five years 1.6 2.6
441.5 411.7
Fair values
Financial assets
The Group's financial assets are detailed in the table below. The carrying
value of cash and cash equivalents and trade and other receivables is a
reasonable approximation of fair value which would be measured under a level 3
hierarchy. Financial assets at fair value through profit and loss are carried
at fair value and categorised as level 3 (inputs not based on observable
market data) within the hierarchical classification of IFRS 13: Revised.
Financial liabilities
The Group's financial liabilities are detailed in a table below, the carrying
amounts of which are deemed to be a reasonable approximation to their fair
value. The fair values of the RCF, other loans and loan notes are calculated
based on the present value of future principal and interest cash flows,
discounted at the market rate of interest at the consolidated statement of
financial position date.
The fair values of the facilities determined on this basis are:
2025 Nominal interest rate Face Carrying value Maturity
value
£m £m
Current
Revolving credit facility SONIA+3% 100.0 100.0 2026
Non-current
Senior loan notes 3.62%-3.87% 65.0 65.0 2027-2029
Total interest-bearing loans 165.0 165.0
2024 Nominal interest rate Face Carrying value Maturity
value
£m £m
Current
Senior loan notes 3.32% 20.0 20.0 2025
Non-current
Senior loan notes 3.62%-3.87% 65.0 65.0 2026-2029
Total interest-bearing loans 85.0 85.0
Financial assets and liabilities by category
2025 2024
Financial assets £m £m
Sterling cash deposits 125.0 73.8
Trade receivables 96.5 62.2
Amounts due from joint ventures 12.3 22.6
Other receivables 21.3 12.5
Total financial assets at amortised cost 255.1 171.1
Financial assets at fair value through profit and loss 2.8 3.3
Total financial assets 257.9 174.4
Financial liabilities 2025 2024
£m £m
Senior loan notes 65.0 85.0
Revolving credit facility 100.0 -
Land payables on contractual terms carrying no interest 73.2 131.6
Amounts due to joint ventures - 0.1
Lease liabilities 10.2 12.0
Other trade payables 82.5 67.8
Other payables 2.5 2.8
Accruals 108.1 112.4
Total financial liabilities at amortised cost 441.5 411.7
24 CONTINGENCIES AND COMMITMENTS
There are performance bonds and other engagements, including those in respect
of joint venture partners, undertaken in the ordinary course of business. It
is impractical to quantify the financial effect of performance bonds and other
arrangements. The Directors consider the possibility of a cash outflow in
settlement of performance bonds and other arrangements to be remote and
therefore this does not represent a contingent liability for the Group.
In the ordinary course of business, the Group enters into certain land
purchase contracts with vendors on a conditional exchange basis. The
conditions must be satisfied for the Group to recognise the land asset and
corresponding liabilities within the consolidated statement of financial
position. No land payable in respect of conditional land acquisitions has been
recognised.
The Group provides for all known material legal actions where, having taken
appropriate legal advice as to the likelihood of success of the actions, it is
considered probable that an outflow of economic resource will be required, and
the amount can be reliably measured. No material contingent liability in
respect of such claims has been recognised since there are no known claims of
this nature.
As discussed in note 15, as a result of the Section 37 case the Group
considers that the amount of any potential impact on the defined benefit
obligation cannot be confirmed and/or measured with sufficient reliability at
the 2025 year end. We are therefore disclosing this issue as a potential
contingent liability at 31 October 2025 and will review again in 2026 based on
the findings of the detailed investigation.
The Group is reviewing the recoverability of costs incurred from third parties
where it has a contractual right of recourse. As reflected in these financial
results, the Group has a track record of successfully obtaining such
recoveries, however no contingent assets have been recognised in these
consolidated financial statements for such items.
25 NET DEBT AND LAND CREDITORS
2025 2024
£m £m
Cash and cash equivalents 125.0 73.8
Non-current interest-bearing loans and borrowings (64.1) (63.2)
Current interest-bearing loans and borrowings (99.1) (19.1)
Net debt (38.2) (8.5)
Land payables on contractual terms carrying no interest (73.2) (131.6)
Net debt and land creditors (111.4) (140.1)
26 RELATED PARTY TRANSACTIONS
Transactions between subsidiaries, which are related parties, are eliminated
on consolidation, as well as transactions between the Company and its
subsidiaries during the current and prior year.
Transactions between the Group and key management personnel mainly comprise
remuneration which is given in note 6. Detailed disclosure for Board members
is given within the Directors' remuneration report on pages 82-104 of our 2025
Annual Report to be published in February 2026. There were no other
transactions between the Group and key management personnel in the year.
Transactions between the Group and the Crest Nicholson Group Pension and Life
Assurance Scheme is given in note 15.
The Company's Directors have associations other than with the Company. From
time to time the Group may trade with organisations with which a Director has
an association. Where this occurs, it is on normal commercial terms and
without the direct involvement of the Director.
The Group had the following transactions/balances with its joint ventures in
the year/at year end:
2025 2024
£m £m
Interest income on joint venture funding 0.4 0.7
Project management fees recognised 2.0 1.9
Amounts due from joint ventures, net of expected credit losses 12.3 22.6
Amounts due to joint ventures - 0.1
Funding to joint ventures (14.2) (13.1)
Repayment of funding from joint ventures 6.2 36.4
Dividends received from joint ventures - 2.5
27 GROUP UNDERTAKINGS
In accordance with Section 409 Companies Act 2006, the following is a list of
all the Group's undertakings at 31 October 2025.
Subsidiary undertakings
At 31 October 2025 the Group had an interest in the below subsidiary
undertakings, which are included in the consolidated financial statements. All
subsidiaries were incorporated in England and Wales.
Entity name Registered office(1) Active / dormant Year end date Voting rights and shareholding (direct or indirect)
Bath Riverside Estate Management Company Limited 2 Dormant 31 October 100%
Bath Riverside Liberty Management Company Limited 2 Dormant 31 October 100%
Castle Bidco Home Loans Limited 1 Active 30 October 100%
Brightwells Residential 1 Company Limited 1 Dormant 31 October 100%
Bristol Parkway North Limited 1 Dormant 31 October 100%
Building 7 Harbourside Management Company Limited 2 Active 31 December 58.33%
Buildings 3A, 3B & 4 Harbourside Management Company Limited 2 Dormant 31 December 83.33%
Clevedon Developments Limited 1 Dormant 31 October 100%
Clevedon Investment Limited 1 Active 31 October 100%
CN Assets Limited 1 Active 31 October 100%
CN Finance plc(2) 1 Active 31 October 100%
CN Nominees Limited 1 Dormant 31 October 100%
CN Properties Limited 1 Dormant 31 October 100%
CN Secretarial Limited 1 Dormant 31 October 100%
CN Shelf 2 LLP 1 Dormant 31 October 100%
CN Shelf 3 LLP 1 Dormant 31 October 100%
Crest (Claybury) Limited 1 Dormant 31 October 100%
Crest Developments Limited 1 Dormant 31 October 100%
Crest Estates Limited 1 Dormant 31 October 100%
Crest Homes (Eastern) Limited 1 Dormant 31 October 100%
Crest Homes (Midlands) Limited 1 Dormant 31 October 100%
Crest Homes (Nominees) Limited 1 Active 31 October 100%
Crest Homes (Nominees No. 2) Limited 1 Active 31 October 100%
Crest Homes (Northern) Limited 1 Dormant 31 October 100%
Crest Homes (South East) Limited 1 Dormant 31 October 100%
Crest Homes (South West) Limited 1 Dormant 31 October 100%
Crest Homes (South) Limited 1 Dormant 31 October 100%
Crest Homes (Wessex) Limited 1 Dormant 31 October 100%
Crest Homes (Westerham) Limited 1 Dormant 31 October 100%
Crest Homes Limited 1 Dormant 31 October 100%
Crest Manhattan Limited 1 Dormant 31 October 100%
Crest Nicholson (Bath) Holdings Limited 1 Active 31 October 100%
Crest Nicholson (Chiltern) Limited 1 Dormant 31 October 100%
Crest Nicholson (Eastern) Limited 1 Dormant 31 October 100%
Crest Nicholson (Epsom) Limited 1 Dormant 31 October 100%
Crest Nicholson (Henley-on-Thames) Limited 1 Active 31 October 100%
Crest Nicholson (Highlands Farm) Limited 1 Dormant 31 October 100%
Crest Nicholson (Londinium) Limited 1 Dormant 31 October 100%
Crest Nicholson (Midlands) Limited 1 Dormant 31 October 100%
Crest Nicholson (Peckham) Limited 1 Active 31 October 100%
Crest Nicholson (South East) Limited 1 Dormant 31 October 100%
Crest Nicholson (South West) Limited 1 Dormant 31 October 100%
Crest Nicholson (South) Limited 1 Dormant 31 October 100%
Crest Nicholson (Stotfold) Limited 1 Active 31 October 100%
(1) 1: 500 Dashwood Lang Road, Bourne Business Park, Addlestone, Surrey KT15
2HJ.
2: Units 1,2, and 3 Beech Court Wokingham Road, Hurst, Reading, England,
RG10 0RU.
(2) CN Finance plc is the only direct holding of Crest Nicholson Holdings plc.
Entity name Registered office(1) Active / dormant Year end date Voting rights and shareholding (direct or indirect)
Crest Nicholson Developments (Chertsey) Limited 1 Active 31 October 100%
Crest Nicholson Operations Limited 1 Active 31 October 100%
Crest Nicholson Pension Trustee Limited 1 Dormant 31 January 100%
Crest Nicholson plc 1 Active 31 October 100%
Crest Nicholson Projects Limited 1 Dormant 31 October 100%
Crest Nicholson Properties Limited 1 Dormant 31 October 100%
Crest Nicholson Regeneration Limited 1 Dormant 31 October 100%
Crest Nicholson Residential (London) Limited 1 Dormant 31 October 100%
Crest Nicholson Residential (Midlands) Limited 1 Dormant 31 October 100%
Crest Nicholson Residential (South East) Limited 1 Dormant 31 October 100%
Crest Nicholson Residential (South) Limited 1 Dormant 31 October 100%
Crest Nicholson Residential Limited 1 Active 31 October 100%
Crest Nicholson (Wheatley) LLP 1 Active 31 October 100%
Crest Partnership Homes Limited 1 Dormant 31 October 100%
Crest Strategic Projects Limited 1 Dormant 31 October 100%
Eastern Perspective Management Company Limited 1 Dormant 31 October 100%
Essex Brewery (Walthamstow) LLP 1 Dormant 31 October 100%
Harbourside Leisure Management Company Limited 1 Active 30 December 71.43%
Landscape Estates Limited 1 Dormant 31 October 100%
Mertonplace Limited 1 Dormant 31 October 100%
Nicholson Estates (Century House) Limited 1 Dormant 31 October 100%
Park Central Management (Central Plaza) Limited 1 Dormant 31 October 100%
Ellis Mews (Park Central) Management Limited 1 Active 31 October 100%
Park Central Management (Zone 11) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 12) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 1A North) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 1A South) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 1B) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 3/1) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 3/2) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 3/3) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 3/4) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 4/41 & 42) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 4/43/44) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 5/53) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 5/54) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 5/55) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 6/61-64) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 7/9) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 8) Limited 1 Dormant 31 October 100%
Park Central Management (Zone 9/91) Limited 1 Dormant 31 January 100%
Park West Management Services Limited 1 Active 29 March 62.00%
(1) 1: 500 Dashwood Lang Road, Bourne Business Park, Addlestone, Surrey KT15
2HJ.
Subsidiary audit exemption
The following subsidiaries have taken advantage of an exemption from audit
under Section 479A of the Companies Act 2006. The parent of the subsidiaries,
Crest Nicholson plc, has provided a statutory guarantee for any outstanding
liabilities of these subsidiaries. All subsidiary undertakings have been
included in the consolidated financial statements of Crest Nicholson Holdings
plc as at 31 October 2025.
Castle Bidco Home Loans Limited (13687515)
Clevedon Investment Limited
(00454327)
Crest Homes (Nominees No. 2) Limited (02213319)
Crest Nicholson (Henley-on-Thames) Limited (03828831)
Crest Nicholson (Peckham) Limited (07296143)
Crest Nicholson (Stotfold) Limited
(08774274)
Crest Nicholson (Bath) Holdings Limited (05235961)
Crest Nicholson Developments (Chertsey) Limited (04707982)
Crest Homes (Nominees) Limited (01715768)
Crest Nicholson Residential Limited
(00714425)
Joint venture undertakings
At 31 October 2025 the Group had an interest in the following joint venture
undertakings which are equity accounted within the consolidated financial
statements. The principal activity of all undertakings is that of residential
development. All joint ventures were incorporated in England and Wales.
Entity name Registered office(1) Active / dormant Year end date Voting rights and shareholding (direct or indirect)
Material joint ventures
Crest A2D (Walton Court) LLP 1 Active 31 March 50%
Crest Sovereign (Brooklands) LLP 3 Active 31 October 50%
Crest Peabody (Turweston) LLP 1 Active 31 March 50%
Other joint ventures not material to the Group
Crest/Vistry (Epsom) LLP 1 Active 31 October 50%
Crest Nicholson Bioregional Quintain LLP 1 Active 31 October 50%
Elmsbrook (Crest A2D) LLP 4 Active 31 March 50%
English Land Banking Company Limited 1 Dormant 31 October 50%
Haydon Development Company Limited 2 Active 30 April 21.36%
North Swindon Development Company Limited 2 Active 31 December 32.64%
(1)1: 500 Dashwood Lang Road, Bourne Business Park, Addlestone, Surrey KT15
2HJ.
2: 6 Drakes Meadow, Penny Lane, Swindon, Wiltshire SN3 3LL.
3: Sovereign House, Basing View, Basingstoke RG21 4FA.
4: 113 Uxbridge Road, London W5 5TL.
Joint operations
The Group is party to a joint unincorporated arrangement with Aviva Life &
Pensions UK Ltd, the purpose of which is to acquire and develop a site in
Chertsey, Surrey. The two parties are jointly responsible for the control and
management of the site's development, with each party funding 50% of the cost
of the land acquisition and development of the site, in return for 50% of the
returns. As such, this arrangement has been designated as a joint operation.
The Group is party to a joint unincorporated arrangement with Persimmon plc,
the purpose of which is to develop a site in Ringwood, Hampshire. The two
parties are jointly responsible for the development of the site, the
specification and delivery of critical shared infrastructure is agreed by both
parties under an initial collaboration agreement and any deviations to that
agreement must be agreed unanimously. The costs of shared infrastructure at
the site are split 60% to Persimmon plc and 40% to Crest Nicholson which is
consistent with the split of plots on the development for which each party
have taken responsibility for the direct build costs and revenues of specific
plots on the development and recognise revenues and costs consistent with
their rights and obligations to costs revenue and costs under the terms of the
arrangement.
The Group is party to a joint unincorporated arrangement with Persimmon plc
and Taylor Wimpey plc, the purpose of which is to develop 80 apartments at a
site in Horley, Surrey. The three parties are jointly responsible for the
control and management of the site's development, with the parties responsible
for funding the development of the site per to following proportions: Crest
Nicholson: 53%, Persimmon plc: 26% and Taylor Wimpey plc: 21%, in return for
the same proportion of the returns. As such, this arrangement has been
designated as a joint operation.
In line with the Group's accounting policies, the Group has recognised its
share of the jointly controlled assets and liabilities, and income and
expenditure, in relation to these joint arrangements on a line-by-line basis
in the consolidated statement of financial position and consolidated income
statement as there is no legal entity in place and the arrangements are
structured such that the Group has a direct interest in the underlying assets
and liabilities of each arrangement.
Crest Nicholson employee share ownership trust (ESOT)
The Group operates the Crest Nicholson ESOT, which is used to satisfy awards
granted under the Group's share incentive schemes. Shares are allotted to the
Trust or the Trust is funded to acquire shares in the open market. The ESOT
falls within the scope of IFRS 10: Consolidated Financial Statements, and is
consolidated within the Group financial statements, as the Group is considered
to have control over the ESOT.
28 PRIOR YEAR RESTATEMENT
In response to identified control weaknesses, the Group investigated cost
forecasting of sites in its Eastern division through its strengthened Cost
Value Recognition (CVR) process. A thorough investigation identified isolated
issues in the cost forecasting of one Eastern site, where historical
non-compliance with the Group's CVR process was identified as a result of
insufficient capability in the division. In addition to strengthened controls
in the previous year, Finance leadership in the division has been replaced,
and the new team led the investigation overseen directly by the CFO and Group
Commercial Director.
The investigation found significant programme costs and changes to sales
assumptions, that could previously have reasonably been identified, estimated,
obtained and accounted for in previous periods, from 2022 to 2024. In
accordance with IAS 8 this is considered to be an accounting error that
requires adjustment of site margins recognised in prior periods. The
adjustment does not reflect changes to estimates that could not have been
reasonably estimated at the time without the benefit of hindsight. Such
changes in estimates are accounted for in the period in which information
becomes reasonably available, and events occur to trigger an updated cost
estimate that can be reasonably and reliably estimated.
After considering a range of qualitative factors and the aggregate
quantitative impact for the year ended 31 October 2024, it was concluded that
there was a material balance sheet error in the 2024 financial statements in
the context of historical profits recognised since 2022 and the equity
position. The additional forecast costs which should have been identified in
prior years would have reduced the estimated full-life margin on the impacted
site at that time. The full-life margin is used to determine the amount of
inventories to be expensed as cost of sales. To correct the error, the
full-life margin at the time has been recalculated to include the additional
forecast costs, and the revised margin has been used to recalculate the amount
of inventories that should have been expensed.
The adjustment directly impacted cost of sales, income tax expense,
inventories, current tax assets, deferred tax assets and retained earnings.
The impact on net income recognised in any one year is not material. The
tables below outline the impact on each line item. Where relevant to these
changes, other disclosures in the notes to the financial statements have also
been restated.
Restated financial information
The below tables disclose the restated prior year financial information.
As previously reported Adjustment 2024 As presented
£m £m £m
Consolidated income statement
Total
Cost of sales (689.8) (2.1) (691.9)
Gross loss (71.6) (2.1) (73.7)
Operating loss (128.7) (2.1) (130.8)
Loss before tax (143.7) (2.1) (145.8)
Income tax credit 40.2 0.6 40.8
Loss for the year attributable to equity shareholders (103.5) (1.5) (105.0)
Total comprehensive expense attributable to equity shareholders (97.1) (1.5) (98.6)
Basic loss per share (pence) (40.4) (0.6) (41.0)
Adjusted basic earnings per share (pence) 5.6 (0.6) 5.0
Consolidated statement of financial position
Deferred tax assets 39.7 1.3 41.0
Total non-current assets 127.8 1.3 129.1
Inventories 1,137.4 (8.3) 1,129.1
Current income tax receivable 4.1 0.6 4.7
Total current assets 1,314.4 (7.7) 1,306.7
Total assets 1,442.2 (6.4) 1,435.8
Net assets 728.9 (6.4) 722.5
Retained earnings 641.9 (6.4) 635.5
Total equity 728.9 (6.4) 722.5
Total equity at 1 November 2023 856.3 (4.9) 851.4
Changes in consolidated cash flow statement
Loss for the year attributable to equity shareholders (103.5) (1.5) (105.0)
Income tax credit (40.2) (0.6) (40.8)
Operating loss before changes in working capital, provisions and contributions (120.8) (2.1) (122.9)
to retirement benefit obligations
Increase in inventories 22.2 2.1 24.3
Notes to the financial statements
Inventories expensed in the year (497.6) (2.1) (499.7)
Alternative performance measures
Adjusted operating profit 31.3 (2.1) 29.2
Average of opening and closing capital employed 764.4 (5.6) 758.8
ROCE (%) 4.1 (0.3) 3.8
Land creditors as a percentage of net assets (%) 18.1 0.1 18.2
Inventory as a percentage of revenue (%) 184.0 (1.4) 182.6
The amount relating to years earlier than 2024 gave rise to an adjustment of
£4.9m (net of tax) to opening retained earnings as at 1 November 2023,
comprising a reduction of £6.2m in inventories, an increase in current income
tax receivable of £0.6m and an increase in the deferred tax asset of £0.7m.
A third balance sheet has not been presented as is normally required by IAS 8
given the limited impact outside of the items already disclosed.
CREST NICHOLSON HOLDINGS PLC
COMPANY STATEMENT OF FINANCIAL POSITION
As at 31 October 2025
2025 2024
Note £m £m
ASSETS
Non-current assets
Investments 4 34.2 33.6
Current assets
Trade and other receivables 5 165.7 162.5
TOTAL ASSETS 199.9 196.1
NET ASSETS 199.9 196.1
SHAREHOLDERS' EQUITY
Share capital 6 12.8 12.8
Share premium account 6 74.2 74.2
Share-based payments reserve 4 34.2 32.1
Retained earnings: 78.7 77.0
TOTAL SHAREHOLDERS' EQUITY 199.9 196.1
The Company recorded a profit for the financial year of £9.6m (2024: £8.4m).
The notes below form part of these financial statements.
The financial statements were approved by the Board of Directors on 28 January
2026.
On behalf of the Board
Martyn Clark
Bill Floydd
Director
Director
CREST NICHOLSON HOLDINGS PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 October 2025
Share capital Share premium account Share- based payments reserve Retained earnings Total equity
Note £m £m £m £m £m
Balance at 1 November 2023 12.8 74.2 30.3 101.0 218.3
Profit for the financial year and total comprehensive income - - - 8.4 8.4
Transactions with shareholders
Dividends paid - - - (32.1) (32.1)
Exercise of share options through employee share ownership trust 4 - - - (0.7) (0.7)
Net proceeds from the issue of shares and exercise of share options - - - 0.4 0.4
Equity-settled share-based payments - - 1.8 - 1.8
Balance at 31 October 2024 12.8 74.2 32.1 77.0 196.1
Profit for the financial year and total comprehensive income - - - 9.6 9.6
Transactions with shareholders
Dividends paid - - - (6.4) (6.4)
Exercise of share options through employee share ownership trust 4 - - - (0.5) (0.5)
Transfer of investment in own shares 4 - - - (1.0) (1.0)
Equity-settled share-based payments - - 2.1 - 2.1
Balance at 31 October 2025 12.8 74.2 34.2 78.7 199.9
CREST NICHOLSON HOLDINGS PLC
NOTES TO THE COMPANY FINANCIAL STATEMENTS
1 ACCOUNTING POLICIES
Basis of preparation
Crest Nicholson Holdings plc (the Company) is a public company limited by
shares, incorporated, listed and domiciled in England and Wales. The address
of the registered office is 500 Dashwood Lang Road, Bourne Business Park,
Addlestone, Surrey KT15 2HJ. The Company financial statements have been
prepared and approved by the Directors in accordance with Financial Reporting
Standard 101 Reduced Disclosure Framework (FRS 101), in accordance with the
Companies Act 2006 as applicable to companies using FRS 101, and have been
prepared on the historical cost basis. The preparation of financial statements
in conformity with FRS 101 requires the Directors to make assumptions and
judgements that affect the application of policies and reported amounts within
the financial statements. Assumptions and judgements are based on experience
and other factors that the Directors consider reasonable under the
circumstances. Actual results may differ from these estimates.
The financial statements are presented in pounds sterling and amounts stated
are denominated in millions (£m), unless otherwise stated. The accounting
policies have been applied consistently in dealing with items which are
considered material. These financial statements present information about the
Company as an individual undertaking and not about its group. Under Section
408 of the Companies Act 2006 the Company is exempt from the requirement to
present its own profit and loss account.
The Company has taken advantage of the following disclosure exemptions under
FRS 101:
· the requirements of paragraphs 45(b) and 46-52 of IFRS 2
Share-based Payments
· the requirements of IFRS 7 Financial Instruments: Disclosures
· the requirements of paragraphs 91-99 of IFRS 13 Fair Value
Measurement
· the requirement in paragraph 38 of IAS 1 Presentation of
Financial Statements to present comparative information in respect of
paragraph 79(a)(iv) of IAS 1
· the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C,
38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial
Statements
· the requirements of IAS 7 Statement of Cash Flows
· the requirements of paragraphs 30 and 31 of IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors
· the requirements of paragraphs 17 and 18A of IAS 24 Related Party
Disclosures
· the requirements in IAS 24 Related Party Disclosures to disclose
related party transactions entered into between two or more members of
a group, provided that any subsidiary which is a party to the transaction is
wholly owned by such a member
· the requirements of paragraphs 134(d) to 134(f) and 135(c) to
135(e) of IAS 36 'Impairment of Assets'.
Going concern
When determining the appropriateness of the basis of preparation, the
Directors evaluated whether the Company has the ability to meet its
liabilities and obligations as they fall due. This evaluation included a
review of detailed cash flow projections and financial forecasts covering the
period up to 30 April 2027 (the going concern period), aligned with those used
for the Group's going concern assessment. The Company relies on the overall
performance of the Group to fulfil its liabilities and obligations in the
foreseeable future. These obligations include compliance with financial
covenants under the sustainability-linked revolving credit facility (RCF) and
senior loan notes, as outlined in note 23 of the consolidated financial
statements.
Based on these forecasts, the Group is expected to meet its liabilities as
they become due throughout the going concern period. However, in a severe but
plausible downside scenario the Group has identified a material uncertainty
during the going concern period in respect of the compliance with the interest
cover covenant, with the first measurement date in April 2026. Further details
of the Group's going concern assessment are provided in note 1 of the
consolidated financial statements.
In reviewing the assessment outlined above, the Directors are confident that
the Company 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 financial statements. Accordingly, the
Company 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 Company's ability to continue as a going
concern. The financial statements do not include any adjustments that would
result from the basis of preparation being inappropriate.
Adoption of new and revised standards
There were no new standards, amendments or interpretations that were adopted
by the Company and effective for the first time for the financial year
beginning 1 November 2024 that have had a material impact on the Company. The
principal accounting policies set out below have, unless otherwise stated,
been applied consistently to all years presented in these financial
statements.
Share-based payments
The Company issues equity-settled share-based payments to certain employees of
its subsidiaries. Equity-settled share-based payments are measured at fair
value at the grant date and charged to the subsidiaries income statement on a
straight-line basis over the vesting period, based on the estimate of shares
that will vest. The cost of equity-settled share-based payments granted to
employees of the Group is borne by other subsidiary companies, which are the
employing company of these employees. Since the Company does not receive any
direct employee services in relation to these share-based payments, it
recognises this cost as a capital contribution in the Company financial
statements through an addition to investments and the share-based payment
reserve in equity.
Taxation
Income tax comprises current tax and deferred tax. Income tax is recognised in
the Company's income statement except to the extent that it relates to items
recognised in other comprehensive income, in which case it is also recognised
in other comprehensive income.
Current tax is the expected tax payable on taxable profit for the year and any
adjustment to tax payable in respect of previous years. Taxable profit is
profit before tax per the Company's income statement after adjusting for
income and expenditure that is not subject to tax, and for items that are
subject to tax in other accounting periods. The Company's liability for
current tax is calculated using tax rates that have been enacted or
substantively enacted by the statement of financial position date.
Where uncertain tax liabilities exist, the liability recognised is assessed as
the amount that is probable to be payable. Deferred tax is provided in full on
temporary differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in the
computation of taxable profit.
Dividends
Final and interim dividend distributions to the Company's shareholders are
recorded in the Company's financial statements in the earlier of the period in
which they are approved by the Company's shareholders, or paid.
Investments
Investments relate to the impact of the capital contribution in respect of the
cost of equity-settled share-based payments borne by other subsidiary
companies. Investments are assessed annually for indicators of impairment.
Financial assets
Financial assets are initially recognised at fair value and subsequently
classified into one of the following measurement categories:
· at amortised cost
· subsequently at FVTPL
· subsequently at FVOCI.
The classification of financial assets depends on the Company's business model
for managing the asset and the contractual terms of the cash flows. Assets
that are held for the collection of contractual cash flows that represent
solely payments of principal and interest are measured at amortised cost, with
any interest income recognised in the income statement using the effective
interest rate method. Financial assets that do not meet the criteria to be
measured at amortised cost are classified by the Company as measured at FVTPL.
Fair value gains and losses on financial assets measured at FVTPL are
recognised in the income statement and presented within administrative
expenses. The Company currently has no financial assets measured at FVOCI.
Trade and other receivables
Trade and other receivables are recognised initially at fair value and
subsequently measured at amortised cost, using the effective interest method,
less provision for impairment. A provision for impairment of trade receivables
is established based on an expected credit loss model applying the simplified
approach, which uses a lifetime expected loss allowance for all trade
receivables. The amount of the loss is recognised in the income statement.
Own shares held by ESOT
Transactions of the Company-sponsored ESOT are included in both the Group
financial statements and the Company's own financial statements. The Company
makes contributions to the ESOT which are used to acquire Company ordinary
shares in the market in order to satisfy share options under the Company's
share incentive schemes. The purchase of shares in the Company by the ESOT is
charged directly to equity.
Audit fee
Auditor's remuneration for audit of these financial statements of £33,000
(2024: £32,000) was met by Crest Nicholson plc. No disclosure of other
non-audit services has been made as this is included within note 5 of the
consolidated financial statements.
Critical accounting estimates and judgements
The preparation of the Company financial statements under FRS 101 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 Company's accounting policies, the Directors have made no
individual judgements that have a significant impact on the financial
statements.
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 do not
consider there are any significant sources of estimation uncertainty that have
a risk of causing a material adjustment to the carrying value of assets and
liabilities of the Company.
2 DIRECTORS AND EMPLOYEES
The Company had no employees during either year. Details of Directors'
emoluments, which were paid by another Group company, are set out in the
Directors' remuneration report on pages 82-104 of our 2025 Annual Report to be
published in February 2026.
3 DIVIDENDS
Details of the dividends recognised as distributions to equity shareholders in
the year and those proposed after the statement of financial position date are
shown in note 9 of the consolidated financial statements.
4 INVESTMENTS
Investment in own shares Capital contribution Total
£m £m £m
At 1 November 2023 1.6 30.3 31.9
Additions 0.5 1.8 2.3
Disposals (0.6) - (0.6)
At 31 October 2024 1.5 32.1 33.6
Additions - 2.1 2.1
Disposals (0.5) - (0.5)
Transfer to equity (1.0) - (1.0)
At 31 October 2025 - 34.2 34.2
The additions and disposals in the prior year to investment in own shares
relate to Company contributions/ utilisation to/from the Trust. During the
year, the investment in own shares has been transferred to equity. The
addition to capital contributions is the impact of the cost borne by other
subsidiary companies relating to equity-settled share-based payments in the
year.
The Directors believe that the carrying value of the investments is supported
by their underlying assets.
5 TRADE AND OTHER RECEIVABLES
2025 2024
£m £m
Amounts due from Group undertakings 165.7 162.5
Amounts due from Group undertakings are unsecured, repayable on demand and
carry an interest rate of 7.0% (2024: 7.0%).
Amounts due from Group undertakings are stated after an allowance of £nil has
been made (2024: £nil) in respect of expected credit losses. £nil (2024:
£nil) provision was made during the year, £nil (2024: £nil) was utilised,
and £nil (2024: £nil) provision was released during the year.
6 SHARE CAPITAL
The Company share capital is disclosed in note 22 of the consolidated
financial statements.
7 CONTINGENCIES AND COMMITMENTS
There are performance bonds and other arrangements, including those in respect
of joint venture partners, undertaken in the ordinary course of business. It
is impractical to quantify the financial effect of performance bonds and other
arrangements. The Directors consider the possibility of a cash outflow in
settlement of performance bonds and other arrangements to be remote and
therefore this does not represent a contingent liability for the Company.
In addition, the Company is required from time to time to act as guarantor for
the performance by subsidiary undertakings of contracts entered into in the
normal course of their business and typically provide that the Company will
ensure that the obligations of the subsidiary are carried out or met in the
unlikely event that any subsidiary default occurs. The Company considers the
likelihood of an outflow of cash under these arrangements to be remote and
therefore this does not represent a contingent liability for the Company.
8 GROUP UNDERTAKINGS
A list of all the Group's undertakings at 31 October 2025 is given in note 27
of the consolidated financial statements.
CREST NICHOLSON HOLDINGS PLC
ALTERNATIVE PERFORMANCE MEASURES (UNAUDITED)
The Group uses a number of alternative performance measures (APMs) which are
not defined within IFRS. The Directors use the APMs, along with IFRS measures,
to assess the operational performance of the Group as detailed in the
Strategic Report on pages 1-55 of our 2025 Annual Report to be published in
February 2026 and above. Definitions and reconciliations of the financial APMs
used compared to IFRS measures, are included below.
Sales
The Group uses sales as a core management measure to reflect the full extent
of its business operations and responsibilities. Sales is a combination of
statutory revenue as per the consolidated income statement and the Group's
share of revenue earned by joint ventures, as detailed in the below table:
2025 2024
Revenue £m 610.8 618.2
Group's share of joint venture revenue £m 24.0 39.9
Sales £m 634.8 658.1
Return on capital employed (ROCE)
The Group uses ROCE as a core management measure to reflect the profitability
and efficiency with which capital is employed. ROCE is calculated as adjusted
operating profit before joint ventures divided by average capital employed
(capital employed = equity plus net debt or less net cash), as presented
below. The Group has long-term performance measures linked to ROCE. ROCE
achieved by the Group in the year increased to 4.7% (2024: reduced to
3.8%(1)).
2025 Restated(1
) 2024
Adjusted operating profit £m 34.7 29.2
Average of opening and closing capital employed £m 743.7 758.8
ROCE % 4.7 3.8
Capital employed 2025 Restated(1 Restated(1
) 2024 ) 2023
Equity shareholders' funds £m 718.1 722.5 851.4
Net debt/(cash) (note 18) £m 38.2 8.5 (64.9)
Closing capital employed £m 756.3 731.0 786.5
(1) See note 28 for an explanation of the prior year restatement.
Land creditors as a percentage of net assets
The Group uses land creditors as a percentage of net assets as a core
management measure to ensure that the Group is maintaining its financial
position when entering into future land commitments. Land creditors as a
percentage of net assets is calculated as land creditors divided by net
assets, as presented below. Land creditors as a percentage of net assets has
reduced in the year to 10.2% (2024: reduced to 18.2%(1)).
2025 Restated(1
) 2024
Land creditors (note 20) £m 73.2 131.6
Net assets £m 718.1 722.5
Land creditors as a percentage of net assets % 10.2 18.2
(1) See note 28 for an explanation of the prior year restatement.
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 has
increased in the year to £38.2m net debt from £8.5m net debt in 2024.
2025 2024
Cash and cash equivalents £m 125.0 73.8
Interest-bearing loans and borrowings £m (163.2) (82.3)
Net debt £m (38.2) (8.5)
Inventory as a percentage of revenue
Inventory as a percentage of revenue is calculated as inventory divided by
revenue, as presented below. Inventory as a percentage of revenue has reduced
in the year to 172.9% (2024: increased to 182.6%(1)).
2025 Restated(1
) 2024
Inventory (note 17) £m 1,056.1 1,129.1
Revenue (note 3) £m 610.8 618.2
Inventory as a percentage of revenue % 172.9 182.6
(1) See note 28 for an explanation of the prior year restatement.
Adjusted performance metrics
Adjusted performance metrics as shown below comprise statutory metrics
adjusted for the exceptional items as presented in note 4 of the consolidated
financial statements. The exceptional items have a material impact to reported
performance and arise from recent, unforeseen events. As such, the Directors
consider that these adjusted performance metrics reflect a more accurate view
of its core operations and business performance. Adjusted and pre-exceptional
are used interchangeably. The earnings before interest and tax margin for
share award performance conditions is equivalent to operating profit margin.
Year ended 31 October 2025 Statutory Exceptional items Adjusted
Gross profit £m 81.3 4.0 85.3
Gross profit margin % 13.3 - 14.0
Operating profit £m 24.2 10.5 34.7
Operating profit margin % 4.0 - 5.7
Net finance expense £m (19.0) 9.4 (9.6)
Profit before tax £m 2.9 23.6 26.5
Income tax expense £m (0.7) (5.9) (6.6)
Profit after tax £m 2.2 17.7 19.9
Basic earnings per share Pence 0.9 6.9 7.8
Diluted earnings per share Pence 0.9 6.8 7.7
Year ended 31 October 2024 restated(1) ( ) Exceptional items Adjusted
Statutory
Gross (loss)/profit £m (73.7) 158.4 84.7
Gross (loss)/profit margin % (11.9) - 13.7
Operating (loss)/profit £m (130.8)) 160.0 29.2
Operating (loss)/profit margin % (21.2) - 4.7
Net finance expense £m (14.9) 6.1 (8.8)
(Loss)/profit before tax £m (145.8) 166.1 20.3
Income tax credit/(expense) £m 40.8 (48.2) (7.4)
(Loss)/profit after tax £m (105.0)) 117.9 12.9
Basic (loss)/earnings per share Pence (41.0) 46.0 5.0
Diluted (loss)/earnings per share Pence (41.0) 46.0 5.0
(1) See note 28 for an explanation of the prior year restatement.
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 FR SEAEEAEMSEIF
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Crest Nicholson Holdings
See all newsREG - Crest Nicholson Hdgs - Final Results
AnnouncementREG - Crest Nicholson Hdgs - Director/PDMR Shareholding
AnnouncementREG - Crest Nicholson Hdgs - Total Voting Rights
AnnouncementREG - Crest Nicholson Hdgs - Director/PDMR Shareholding
AnnouncementREG - Crest Nicholson Hdgs - Director Declaration
Announcement