Crest Nicholson Reports Decline in Profit and Revenue, Appoints New CEO
Crest Nicholson Holdings reports decline in profit and revenue, announces new CEO appointment. Company predicts challenges in housing market due to interest rates and inflation. CEO Peter Truscott to retire.
Troy D. Hanson
January 23, 2024
Crest Nicholson Holdings, a leading house builder, has reported a decline in both profit and revenue, reflecting a weak housing market. The company announced the appointment of Martyn Clark as its new Chief Executive Officer.
For the fiscal year ended October 31, Crest Nicholson's pretax profit fell to £23.1 million ($29.4 million), a decrease from £32.8 million in the previous year. Sales per outlet per week also declined, dropping from 0.62 to 0.52.
Similarly, the company's revenue decreased to £657.5 million compared to £913.6 million in the previous year.
Forward Sales and Dividend
As of January 19, forward sales stood at 1,732 units with a gross development value of £434.9 million, down from 2,018 units valued at £510.8 million in the previous year.
The board has proposed a final dividend of 11.5 pence per share, bringing the total dividend for the year to 17.0 pence, which remains unchanged from fiscal 2022.
Housing Market Outlook
Crest Nicholson anticipates continued challenges in the housing market in 2024 due to elevated interest rates and inflation. The absence of government support for first-time buyers and higher borrowing costs impacting customer affordability further compound the situation.
However, the company remains cautiously optimistic, citing a halving of year-on-year inflation and real wage growth. It asserts that its strong position allows it to adapt and excel in any market conditions that may arise.
Additionally, Crest Nicholson announced that CEO Peter Truscott will retire from his position. Martyn Clark, Chief Commercial Officer at Persimmon, will succeed Truscott as CEO later in the year. Truscott will assist with the transition process before his departure.