Crest Nicholson (CRST) Shares Fell 1.07% on Its FY 2023 Results

The Crest Nicholson Holdings PLC (LON: CRST) share price fell 1.07% after releasing the final results for the financial year ended 31 October 2023. For the fiscal year 2023, Crest Nicholson witnessed a 28% decline in revenue, totalling £657.5 million, down from £913.6 million in FY22. This downturn mirrors the broader difficulties in the housing sector. 

The company completed 2,020 homes in FY23, a decrease from 2,734 in FY22. These figures included 1,495 open market completions (including bulk deals) and 525 affordable housing completions.

The Sales per Outlet Week (SPOW) was recorded at 0.52, with an average of 47 outlets, compared to 0.60 SPOW and 54 outlets in FY22. Adjusted profit before tax stood at £41.4 million, a significant reduction from the previous year's £137.8 million. 

The decrease was partly due to additional end-of-year costs of £5.5 million associated with Farnham and other legacy sites following a comprehensive review. The company also recognised an exceptional charge of £13.0 million for a 2021 legal claim concerning fire damage at a low-rise apartment project. 

Crest Nicholson's net cash position at year-end was £64.9 million, a decrease from £276.5 million in FY22. The Group increased its investment in Work-in-Progress (WIP) and land over the year.

As of January 19, 2024, forward sales stood at 1,732 units with a Gross Development Value (GDV) of £434.9 million, compared to 2,018 units and a GDV of £510.8 million in the previous year. The proposed final dividend is 11.5 pence per share, maintaining the total annual dividend at 17.0 pence per share. The Board aims to resume its policy of 2.5 times cover going forward.

Operational highlights for FY23 include the addition of 3,864 plots to the portfolio, with an expected gross margin of 25.2%. The company completed an operational review, leading to adjustments in growth pace and divisional alignments, and is on track to reduce overheads by £3 million in FY24.

Building cost inflation has eased, and the company anticipates this trend will continue into FY24. 

Crest Nicholson (CRST) share price. 

The Crest Nicholson share price fell 1.07% to trade at 203.60p from Monday’s closing price of 205.80p.