ii view: uncertain outlook downs Crest Nicholson
Shares in this FTSE 250 company are down by around two-thirds over the last five years. We assess prospects.
4th February 2025 15:59
by Keith Bowman from interactive investor

Full-year results to 31 October
- Revenue down 6% to £618 million
- Adjusted pre-tax profit down 53% to £22.4 million
- Statutory pre-tax loss of £143.7 million, down from a profit of £23 million in 2023
- Final dividend of 1.2p
- Total dividend for the year down 87% to 2.2p per share
- Net debt of £8.5 million, down from net cash of £65 million in 2023
Chief executive Martyn Clark said:
“I am pleased to report that we delivered FY24 results in line with guidance issued at the start of my tenure and finished the year with better than expected net debt. Nevertheless, this has been a very tough and disappointing year for the business.
“With our initiatives and the anticipated stabilisation of the macroeconomic environment, we believe we are well-positioned to navigate this evolving landscape effectively.”
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ii round-up:
Crest Nicholson Holdings (LSE:CRST) today detailed adjusted profit that broadly matched City forecasts, although the housebuilder’s profit forecast for the year ahead was shy of City hopes.
Full-year adjusted pre-tax profit to the end of October fell 53% to £22.4 million, with a statutory loss of £143 million reported when including exceptional costs to cover legacy fire safety provisions. Under relatively new head Martyn Clark, adjusted profit for the 2025 year ahead is forecast to come in at around £33 million, less than analyst forecasts of £34.5 million. A final dividend of 1.2p per share leaves the total payment for the year down 87% at 2.2p per share.
Shares in the FTSE 250 company fell 6% in UK trading having come into these latest results down 16% over the last year. That’s similar to larger rivals Barratt Redrow (LSE:BTRW) and Taylor Wimpey (LSE:TW.) and better than a 40% drop for affordable homes builder Vistry Group (LSE:VTY). The FTSE 250 index is up 8% over the last year.
Crest constructs a mixture of houses, flats, and some commercial premises largely across the southern half of England and the Midlands.
The group flagged increased customer website visits and follow-up appointments over recent weeks, although with the slower-than-anticipated pace of interest rate cuts weighing on the ability to convert to sales.
Martyn Clark, former chief commercial executive at rival Persimmon (LSE:PSN), continues to conduct a review of the housebuilder, with findings expected to be detailed on 20 March which will help shape the company’s strategic focus for the year ahead.
Company net debt is forecast to rise to between £40 million and £90 million, leaving group interest payments at £10-12 million.
Accompanying ‘going concern’ comments, although flagging expectations to meet interest cover covenants going forward, also flagged a possible breaching in a downside scenario case.
Broker UBS, reiterated its ‘buy’ stance on the shares post the results, highlighting a ‘discounted’ valuation.
ii view:
Started in 1963, Crest today employs over 700 people. The builder completed 1,873 homes in the last financial year, down from 2,020 in 2023 and 2,734 builds in 2022.
For investors, a move into losses given previous legacy build issues cannot be ignored. The outlook for interest rates is uncertain, with a possible global trade tariff war started by Donald Trump increasing costs and therefore inflation. A move into net debt and risk of breaching interest cover covenants should not be overlooked, while a forecast dividend yield is a modest 1.9% after Crest slashed the dividend payment.
To the upside, the new chief executive brings nine years of senior experience from rival Persimmon. Legacy build issues are hopefully being put to bed and covered by an exceptional charge. House prices have broadly remained robust with possible cuts in UK rates still to come, while the potential for further industry consolidation persists and follows Barratt’s takeover of Redrow.
In all, and while an existing land portfolio and a relatively new CEO offer hope, investors may for now await evidence of a profit recovery before taking an interest.
Positives:
- Resilient selling prices
- Hopes for reduced interest rates
Negatives:
- Legacy redress costs
- Cut dividend payment
The average rating of stock market analysts:
Strong hold
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