For the year ended 31st October 2024 Crest Nicholson made a 拢143.7m pre-tax loss (2023: 拢23.1m profit, restated).
Revenue was down 6% at 拢618.2m (2023: 拢657.5m).
The results include exceptional charges of 拢166.1m, including 拢131.7m related to additional fire remediation provision which covers all known 291 buildings within the scope of the company鈥檚 developer remediation contract
The total fire remediation provision at the 2024 year end was 拢249.3m, compared with 拢145.2m at the 2024 half-year point.
Open market private completions were 1,047 (2023: 1,222), open market bulk completions were 331 (2023: 273) and affordable completions were 495 (2023: 525). As a result, total home completions were down 7.3% at 1,873 (2023: 2,020).
Martyn Clark, formerly Persimmon鈥檚 chief commercial officer, took over as Crest Nicholson鈥檚 chief executive Peter Truscott in June 2024. One of his first tasks was to fend off an unsolicited takeover bid from Belway.
鈥淪ince I joined in June, we have worked with renewed vigour to make significant operational progress, revitalising our sales process, improving governance, upgrading management information to allow for better decision making, and enhancing operational rigour and cost control,鈥� he said. 鈥淲e have implemented adjustments that are already delivering positive outcomes.鈥�
He said that he has undertaken 鈥渁 comprehensive review to understand the business鈥� enabling him to 鈥渃raft a strategy鈥� to reshape the business . He promised to reveal further details on this next month.
Of the past financial year, he said: 鈥�2024 has undoubtedly been a challenging year for Crest Nicholson. Previous failures to identify and implement appropriate internal controls within the group, particularly in relation to legacy operational issues on complex developments and legacy sites have significantly impacted our financial performance. We have taken steps to address these shortcomings. Furthermore, the market was affected by the impact of persistently high interest rates and subdued consumer confidence.鈥�
He added: 鈥淭he slower than anticipated pace of interest rate reductions continues to weigh on the ability to convert indications of interest and is tempering the housing market recovery. We remain cautious but anticipate greater stabilisation in the trading environment during the second half of 2025, underpinned by pent-up demand for good quality homes. As at the end of January 2025, the forward order book for FY25 was 1,051 units.鈥�
Commenting on Crest Nicholson鈥檚 full year results, Begbies Traynor partner Julie Palmer said: 鈥淎fter a turbulent year, new CEO Martyn Clark will be feeling the pressure to steer the company on the right path in 2025.
鈥淒espite lower-than-expected profits, an optimistic new vision is sounding some of the right chords, but operational issues need ironing out and Crest needs to demonstrate it can take advantage of the expected uptick in construction. Rising interest rates, increased material and employee costs and an employee skills shortage have created a long and frosty winter for construction, but we may see some green shoots start to emerge as some of these factors stabilise.
鈥淎s competition for contracts begins, has Crest's new leadership created the right environment and structure to grow? Only time will tell."
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