Crest Nicholson (CRST) Trading Update summary

Trading and operational performance

• FY24 volumes reached 1,873 units, with about 45% being affordable and PRS units.

• Open market sales rate was 0.48, slightly down from 0.52 in FY23; last 10 weeks improved to 0.53.

• Adjusted profit before tax expected at the lower end of £22m–£29m guidance, impacted by higher affordable home deliveries and low-margin site trading.

• Enhanced cash management led to better than expected year-end net debt of £8.5m; land creditors reduced to around £100m from £205.5m.

• £250m revolving credit facility extended by 12 months to October 2027.

Strategic and operational initiatives

• CEO Martyn Clark emphasized a transition year ahead, focusing on private sales and prioritizing value over volume to improve returns and margins.

• Operational changes and enhancements have begun, with a focus on optimizing land value, efficient quality homebuilding, and outstanding customer service.

• Selective land investments delivered 1,158 plots, maintaining a strong land pipeline; previous acquisitions progressing through planning.

• Limited build cost inflation observed, with stable material costs and modest wage growth; self-help initiatives underway to improve cost performance.

Customer satisfaction and remediation

• Consistently achieved five-star customer satisfaction scores throughout 2024.

• Centralized specialist team made good progress on fire remediation and building assessments under Self Remediation Terms.