Crest Nicholson (CRST) H1 2025 earnings summary

Executive summary

• Trading performance for H1 2025 was in line with expectations, with early progress on Project Elevate and strategic repositioning supporting confirmation of full-year guidance.

• Project Elevate, the multi-year transformation strategy, is driving operational and cultural change focused on product quality, customer experience, efficiency, and land bank optimization.

• Regained five-star HBF customer service rating and received four Premier Guarantee Excellence Award nominations.

• Fire remediation provision increased by £2.4m, offset by £11.8m recovery from third parties; total recoveries now exceed £32m.

• The company remains on track to achieve FY25 guidance and medium-term objectives.

Financial highlights

• Revenue for HY25 was £249.5m, down 3% year-over-year, with housing revenue up 3% to £233.2m and a decline in land sales.

• Adjusted operating profit rose 92% to £11.9m, driven by improved margins and lower overheads.

• Adjusted gross margin improved to 14.2% (HY24: 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 due to lower inventory.

Outlook and guidance

• FY25 guidance reaffirmed: 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.

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

• Medium-term ambition to reach 2,300 units and 20% gross margin, with outlet growth targeted toward 50.

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