Crest Nicholson Holdings PLC has released its unaudited interim results for the six months ended 30 April 2024. The company reported a revenue of £257.5m, reflecting a low level of reservations at the beginning of the financial year, with home completions of 788. The sales per outlet per week (SPOW) stood at 0.47, with average outlets at 45. The company also made good progress at Farnham, with the scheme tracking in line with the revised plan.
The review of completed site costs, supported by an external consultant, is now concluded, resulting in a one-off charge of £31.4m. Adjusted operating profit after accounting for completed sites charges was £6.2m, reflecting lower volume and a higher proportion of revenue from low margin sites as the Group makes progress in reducing low margin inventory. The statutory loss after tax was £23.4m.
The company has maintained balance sheet strength with net debt at £9.4m and has an undrawn £250m revolving credit facility. The interim dividend stands at 1.0 pence per share, a decrease from the previous year.
Crest Nicholson has sharpened its focus on operational discipline and efficiency and remains highly selective on land acquisitions. The company added 241 plots to the short-term land portfolio, reflecting a planned step-back from the land market. Build cost inflation has moderated further from mid-single digit percentages to flat year on year.
The spring selling season started well, but momentum has softened slightly since Easter, reflecting the volatility in mortgage rates and the expectation of a base rate reduction coming later in the year than previously expected. The Group expects FY24 adjusted profit before tax to be between £22m to £29m.
In conclusion, Crest Nicholson Holdings PLC has reported a decrease in revenue and home completions, with a focus on operational discipline and efficiency. The company has also provided updated guidance for FY24, expecting adjusted profit before tax to be between £22m to £29m.