Crest Nicholson reports £144m loss in ‘tough year’

Crest Nicholson has reported a loss before tax of £143.7m in the year to 31 October 2024, representing a 722.1% drop year-on-year.

The housebuilder also saw its operating profit fall by 530.4%, from £29.9m profit to a loss of £128.7m, while its revenue also dropped by 6% in the period to £618.2m.

Crest Nicholson reached 1,873 completions across the financial year, comprising 1,047 open market units, 485 affordable units and 331 bulk completions.

However, it said the group had continued to incur “additional costs” on some remaining legacy sites but continues to progress in trading out of these schemes.

Crest Nicholson CEO, Martyn Clark, said: "This has been a very tough and disappointing year for the business.

"I have undertaken a comprehensive review to understand the business, which has included obtaining both internal and external perspectives. This has allowed me to identify the market opportunity and craft a strategy that will allow us to maximise that opportunity and optimise the company for sustainable growth with an appropriately scaled cost base that will enhance profitability and consistent shareholder value creation."

Looking ahead, Crest Nicholson said 2025 would be a "year of transition", as the firm looks to deliver on its "new strategy for profitable growth".

It said the broader economic landscape is showing "tentative signs of stabilisation", and that with the Government addressing the "critical shortage of homes in the UK", a "strong foundation" can be provided for the sector to meet the country’s demand for housing.

Investment director at AJ Bell, Russ Mould, concluded: "The past year or so is not working out the way Crest Nicholson and other housebuilders would have hoped. As inflation was brought under control and the political situation in the UK stabilised, they would have been expecting an improved outlook, with growing consumer confidence and rate cuts supporting demand for new homes.

"Instead, rates have remained stubbornly high and economic clouds have gathered, all while material and employee costs are moving higher. The implications for margins are obviously unhelpful and, once you add internal failures in the business to the mix, it adds up to some shaky foundations."



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