(Alliance News) - Crest Nicholson Holdings PLC on Tuesday said annual results were in line with guidance, although it described the year was "very tough and disappointing".
The Weybridge, Surrey-based housebuilder said revenue fell 6.0% to GBP618.2 million in the financial year to October 31 from GBP657.5 million.
It swung to a pretax loss of GBP143.7 million, from profit of GBP23.1 million. This included a pretax exceptional charge of GBP166.1 million, including GBP131.7 million related to additional fire remediation provision.
Completions fell 7.3% to 1,873 in 2024 from 2,020 a year prior with a sales rate of 0.48, down from 0.52.
Chief Executive Martyn Clark said it has been a "very tough and disappointing year for the business", although he was pleased to deliver "results in line with guidance issued at the start of my tenure".
In response, shares in Crest Nicholson were 0.2% higher at 175.45 pence each in London on Tuesday morning, recouping opening losses.
Clark, who joined Crest Nicholson last June, said he has 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. I look forward to updating you in March 2025 with the findings, which will help formulate our strategic focus for the year and beyond and our pathways to achieve our strategic goals."
Clark said the company now has "greater clarity relating to legacy issues with necessary provisions in place". The CEO added: "While economic and political challenges persist, I am cautiously optimistic about the year ahead. We see pent-up demand from customers seeking high-quality, well-designed homes in desirable locations."
But he cautioned the "slower than anticipated pace of interest rate reductions" is weighing on housing market activity. For the new year, it expects pretax profit between GBP28 million and GBP38 million.
The company announced a 1.2 pence per share final dividend, down 90% from 11.5p a year prior. The total dividend for the year was 2.2p per share, down 87% from 17.0p.
By Jeremy Cutler, Alliance News reporter
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