Crest Nicholson Holdings PLC has released a trading update for the period from 1 November 2023 to 15 March 2024. The company achieved reservations in line with expectations and reported a year-to-date open market SPOW rate of 0.44, with an improvement to 0.52 in the last eight weeks. Sale prices were in line with expectations, and cancellations remained at normal levels. The company has focused on improving customer service and consistently achieved over 90% customer satisfaction rating since February 2023.
The planning system continues to pose challenges, but the company's strong land portfolio, with several quality sites acquired last year, positions them favorably to mitigate planning delays and support future outlet growth. Construction at the Farnham development and other legacy sites is progressing largely as planned.
However, the company has become aware of certain build defects predominantly on four sites completed prior to 2019, which will require remediation over the next three years at an estimated cost of up to £15m. As a result, the Board has decided to appoint third-party consultants to provide greater assurance on the adequacy of current provisions around these and other sites completed prior to 2019.
Looking ahead, Crest Nicholson expects FY24 completions to be in the range of 1,800 to 2,000 homes, with completions weighted approximately 35/65% in favor of the second half of the year. Sales prices are expected to remain stable in FY24, and net debt at the end of February 2024 is tracking lower than expected, with this trend expected to continue in the remainder of the financial year.
For further information, please contact:
Crest Nicholson
Jenny Matthews, Head of Investor Relations: +44 (0) 7557 842720
Teneo
James Macey White / Giles Kernick: +44 (0) 207 260 2700