London · Delayed Price · Currency is GBP · Price in GBX Crest Nicholson Holdings Earnings Call Transcripts
Fiscal Year 2026
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Sales and land activity have slowed, prompting a reduction in volume and profit guidance. Cash generation and inventory reduction are now prioritized, with EBIT expected at £5-15 million and net debt at £100-120 million. Build cost inflation is now assumed at 4-5%.
Fiscal Year 2025
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FY 2025 results met expectations with stable revenue, improved margins, and reduced net debt. Project Elevate is driving operational and customer experience gains, while land bank realignment and fire remediation progress support future growth.
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Interim results show revenue down 3% year-over-year but improved gross margin and operating profit. Project Elevate is delivering early gains, fire remediation progress is strong, and FY25 guidance is reaffirmed amid a challenging market.
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A comprehensive transformation plan is underway, shifting focus to the mid-premium housing segment and targeting significant margin and efficiency improvements by 2029. Operational, product, and customer experience enhancements are expected to drive sustainable returns, with risks mainly tied to external market conditions.
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A new strategy centers on the mid-premium housing segment, aiming for higher margins and sustainable returns through operational excellence, land optimization, and enhanced customer experience. Financial targets include a gross margin of 20% and EBIT margin of 13%+ by FY2029, with inventory reduction and disciplined capital allocation.
Fiscal Year 2024
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FY 2024 saw revenue and profit declines amid legacy issues and challenging market conditions, but operational improvements, a strong land bank, and sustainability progress position the business for a transition year in 2025 with improved margins and sales mix expected. Guidance for FY 2025 targets higher open market sales, margin recovery, and continued remediation investment.
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Revenue fell 9% year-over-year amid subdued sales and a shift to lower-margin sites, but pricing and operational discipline remained stable. Legacy site liabilities drove exceptional charges, while a strong land portfolio and improved net debt outlook position the business for future growth.