Crest Nicholson: Solid Performance Despite Challenges in UK Housing Construction

The British building developer Crest Nicholson presented mixed financial results for the fiscal year ending October 31, 2024. Expectations for the adjusted pre-tax profit (APBT) are at the lower end of the forecast of 22 to 29 million pounds, due in part to a higher proportion of affordable housing and the avoidance of low-margin construction projects. The company reported a total volume of 1,873 units, approximately 45 percent of which are affordable and PRS units. The open market sales rate slightly decreased from 0.52 in the previous year to 0.48 but recovered to 0.53 in the last ten weeks of the fiscal year. An increased focus on cash management led to an improved net debt of 8.5 million pounds at the end of the year. In the area of land investments, acquisitions remained selective, with 1,158 plots added to support a strong land reserve. The group secured its financial position by extending its 250 million pound revolving credit facility until October 2027, providing additional financial stability. Liabilities to landowners were significantly reduced to about 100 million pounds. CEO Martyn Clark remains confident despite internal and external challenges: For the coming year, Crest Nicholson plans to focus more on private sales and prioritize value enhancement over volume. "Since taking office, we have implemented numerous operational improvements," said Clark. He is optimistic about a more economically favorable environment with more stable interest rates and increased government support for housing development in the United Kingdom.