Crest Nicholson, a UK-based developer, has announced its financial performance for the fiscal year ending 31 October 2024, with key indicators showing mixed results.
The company expects its adjusted profit before tax (APBT) to be at the lower end of the forecasted range of £22m-£29m ($27.8m-$36.7m). This is attributed to a higher proportion of affordable homes delivered and the process of moving away from low margin sites.
The company reported a total volume of 1,873 units for FY24, with approximately 45% consisting of affordable and PRS units.
The open market sales rate stood at 0.48, a slight decrease from the previous year's 0.52, although the rate improved to 0.53 in the last ten weeks of the financial year.
Crest Nicholson also highlighted an enhanced focus on cash management, which resulted in better-than-expected year-end net debt of £8.5m.
On the operational front, the company has been selective in its land investments, adding 1,158 plots to maintain a robust land pipeline.
In terms of financial facilities, the group has successfully extended its £250m Revolving Credit Facility by 12 months to October 2027, providing additional financial stability. Year-end land creditors have been significantly reduced to approximately £100m, down from £205.5m in the previous fiscal year.
Crest Nicholson CEO Martyn Clark said: “FY24 has presented challenges due to both internal and external factors, with private open market sales volumes continuing to be impacted by ongoing affordability concerns.”
“FY25 will be a year of transition for Crest Nicholson. We are well-positioned with sufficient land with full planning permission to support our planned outlets and volumes. We will focus more on private sales and prioritise value over volume to enhance returns and margins.”
“Since my arrival, we have started implementing numerous operational changes and enhancements to drive the business forward, as evidenced by the stronger cash performance we delivered for the full year.”
“Encouragingly, the broader economic landscape is becoming more favourable, with a more benign interest rate environment and increased government support to improve the planning process to deliver their ambition of increasing supply of much needed homes in the UK.”
