Crest Nicholson (CRST) H1 2025 earnings summary

Executive summary

• Interim/H1 2025 trading met expectations, with early benefits from Project Elevate and strategic repositioning visible in financial, operational, and customer metrics.

• Project Elevate is underway, supporting the mid premium strategy and driving operational and cultural transformation.

• Fire remediation remains a key focus, with provisions slightly increased but offset by significant third-party recoveries.

• Five-star HBF customer service rating regained, with highest recent customer rating and Premier Guarantee award nominations.

• FY25 guidance and medium-term objectives are reaffirmed, with market conditions showing signs of stabilisation.

Financial highlights

• Revenue for HY25 was £249.5m, down 3% year-over-year; housing revenue rose 3% to £233.2m, offset by a fall in land sales.

• Adjusted operating profit rose 92% to £11.9m, with adjusted gross margin improving to 14.2% from 12.0%.

• Adjusted basic EPS was 2.2p (HY24: 0.7p); interim dividend increased to 1.3p per share.

• Net debt at period end was £71.5m, better than expected, driven by lower inventory.

• Statutory operating profit was £18.8m (HY24: loss of £24.1m); profit before tax was £9.4m (HY24: loss of £30.9m).

Outlook and guidance

• Full-year guidance unchanged: open market units 1,050–1,150; bulk/affordable units 650–750; adjusted PBT £28m–£38m; net debt £40m–£90m.

• Forward orders for FY25 at end of May totalled 763 units.

• Anticipates further performance improvements in H2 as transformation initiatives embed.

• No meaningful build cost inflation anticipated; operational discipline to reduce abortive costs continues.

• Medium-term target of 2,300 units and 20% gross margin, with outlet growth required to achieve this.