Crest Nicholson Holdings Plc · LSE:CRST
Crest Nicholson — FY2024 Earnings Presentation
32 slides from Crest Nicholson's earnings presentation, Feb 4, 2025
Slide 1: Crest Nicholson Holdings plc Preliminary Results 2024
Crest Nicholson Holdings plc PRELIMINARY RESULTS 2024 4 February 2025 WINDSOR GATE WINDSOR CREST NICHOLSON
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation may include statements that are, or may be deemed to be, ‘forward-looking statements’. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms ‘believes’, ‘estimates’
Slide 3: Agenda
MARTYN CLARK * INTRODUCTION BILL FLOYDD ° FINANCIAL REVIEW MARTYN CLARK ° OPERATIONAL UPDATE * OUTLOOK Q&A cage CREST NICHOLSON ALBANY WOOD —— " =I — 3 PRELIMINARY RESULTS 2024 February 2025 SOUTHAMPTON
Slide 4: Introduction
INTRODUCTION MARTYN CLARK Chief Executive Officer CLAYBOURNE 4 PRELIMINARY RESULTS 2024 February 2025 BUCKINGHAM
Slide 5: Introduction
INTRODUCTION * Results in line with June 2024 guidance after a very challenging year ° Legacy issues addressed and provisions made * Introducing ‘best in class’ customer service — On track for Five Star HBF rating * Governance and financial discipline strengthened * Implementing operational change a
Slide 6: Financial Review
FINANCIAL REVIEW BILL FLOYDD Chief Financial Officer i aA gf —- <2 © ae eo | g CREST FULLERS GROVE EAST CHALLOW, OXFORDSHIRE 6 PRELIMINARY RESULTS 2024 February 2025
Slide 7: Financial Summary
FINANCIAL SUMMARY (£m) FY24 FY23' Revenue 618.2 657.5 Adjusted gross profit 86.8 105.6 Gross margin 14.0% 16.1% Adjusted operating profit SS 50.8 Adjusted profit before tax 22.4 48.0 Exceptional items before tax (166.1) (24.9) Adjusted basic earnings per share 5.6 14.2 Dividend per share (p)’ 2.2 17
Slide 8: Sales Metrics
SALES METRICS FY24 FY23 % Change Outlets (full year equivalents) 44 47 (6.4) * Outlet reduction reflects planning constraints Sales rate (open market) OAS 0.52 (7.7) * Sales rate marginally ahead of plan reflecting Home completions (units) early sales team training benefits Open market (private) 1,0
Slide 9: Exceptional Items
EXCEPTIONAL ITEMS sm FY24 FY23! Cost of sales Combustible materials charge (131.7) (11.3) Combustible materials credit 44 10.0 Net combustible materials charge (127.3) (1.3) Legal provision and professional fees (0.4) (13.0) Completed site costs (25.0) (6.6) Freehold inventories write-off (5.7) - To
Slide 10: Fire Remediation
FIRE REMEDIATION PROVISION MADE FOR EXPECTED COSTS ON ALL KNOWN BUILDINGS IN SCOPE Buildings Detailed external Provisions includes: £m provided for surveys completed Allk buildi . ° nown buildings in scope FY23 gross costs 172.3 138 35% 9 P Changes in FY24 137.8 ° Internal and external work FY24 gro
Slide 11: Balance Sheet
BALANCE SHEET Balance sheet — key items (£m) FY24 FY23 LAND CREDITOR ROLL OUT BY YEAR (£m) Land 670.2 679.4 WIP 3341 361.3 00 Completed buildings 102.9 89.6 Part exchange inventories 30.2 34.5 7 Land creditors 131.6 205.5 Net (debt) /cash (8.5) 64.9 50 Net assets 728.9 856.3 25 Debt facilities: 0 |
Slide 12: Cash Flow
CASH FLOW Operating cash flow (£m) FY24 FY23 Operating (loss)/profit before changes in working capital (120.8) 43.0 Decrease / (increase) in inventories 22.2 (182.3) Other working capital changes 23.9 (6.4) Cash used by operations (74.7) (145.7) Finance expense paid (5.1) (5.6) Income tax received /
Slide 13: FY24 Financial Summary
FY24 FINANCIAL SUMMARY An extremely challenging year for the Group Substantial progress made in progressing legacy sites to a conclusion Completed sites reviewed and provided for Expected costs for all known buildings in scope of SRT now provided for Baseline from which the business can now progress
Slide 14: FY25 Guidance
FY25 GUIDANCE Volume Open market Bulk and Affordable Outlets Sales Rate Interest Profit before tax Net debt 14 PRELIMINARY RESULTS 2024 February 2025 FY25 FY24 1,050 — 1,150 1,047 650 - 750 826 1,700 — 1,900 1,873 40-42 45 0.5-0.6 0.48 £10m - £12m £8.8m £28m — £38m £22.4m £40m — £90m £8.5m CREST NIC
Slide 15: Operational Update
OPERATIONAL UPDATE MARTYN CLARK Chief Executive Officer i re il | uy, ¥ ae ek, i Pe ——— = = a ——S— ts S ~ CREST NICHOLSON WATERMAN’S GATE 45 PRELIMINARY RESULTS 2024 February 2025 ARBORFIELD GREEN
Slide 16: First Impressions
FIRST IMPRESSIONS . * Good land portfolio Operational efficiency gaps — Great sites in desirable locations with good — Improve management information reporting embedded margins — Improvements in control and monitoring processes — Reviewing larger sites to maximise potential . . . = Strategic land po
Slide 17: Delivering an Outstanding Customer Journey
DELIVERING AN OUTSTANDING CUSTOMER JOURNEY * Commitment to Exceptional Customer Service ~— Achieving a customer satisfaction rating above 90% (Five Star) ~ Organisational and management changes to strengthen operations — Enhanced customer journey from first contact to moving in ° Upgraded core speci
Slide 18: Building Homes of Exceptional Quality, Efficiently
BUILDING HOMES OF EXCEPTIONAL QUALITY, EFFICIENTLY Addressing gap between brand quality expectations and build production Implementing control and monitoring processes Enhancing IT and data visibility across all functions Improving supply chain management Enhanced quality monitoring and benchmarking
Slide 19: Optimise Land Portfolio
OPTIMISE LAND PORTFOLIO Prime land locations ~ Located in highly sought-after areas, with strong demand and higher gross margins Maximising land value and profitability ~ Lowering proportion of low margin sites, reducing gross margin drag — Focus on leveraging high-quality land assets to optimise si
Slide 20: Centralised Fire Remediation Team
CENTRALISED FIRE REMEDIATION TEAM Newly created centralised division Alignment with Government Maximise focus on dedicated to fire safety remediation requirements new home delivery * Dedicated team to expedite * Timing of delivery aligns closely * Divisional teams can now assessment and remediation
Slide 21: Sustainability & Social Value
SUSTAINABILITY & SOCIAL VALUE Strategic Foundation: Sustainability is central to building great places for our customers, communities and the environment Sustainability Highlights 2024 Lower Emissions: Reducing Waste: Future Ready: * Scope 1 & 2 emissions reduced ° Waste intensity (per 100 sq. m) *
Slide 22: Summary 2024
SUMMARY 2024 Encouraged by early changes Dedicated and adaptable work force with high engagement Changing at pace Fire remediation cost provided for all in-scope buildings Provides greater clarity on the business going forward Re-invigorated business on firmer foundation Low margin legacy sites bein
Slide 23: Outlook and Future Focus
OUTLOOK AND FUTURE FOCUS Strategic priorities 2025 focus Strategic foundation for success Establish excellence in key operational areas * Delivering outstanding experience to customers * Exceptional customer service * Building homes of exceptional quality efficiently * High quality product that alig
Slide 24: Capital Markets Day
=e ; WINDSOR GATE WINDSOR Capital Markets Day ; Ghiaal Windsor
Slide 25: Fullers Grove, East Challow, Oxfordshire
@FULLERS GROVE oN “EAST CHALLOW, OXFORDSHIRE CREST NICHOLSON
Slide 26: Appendix
APPENDIX aOR CREST FP NICHOLSON ALBANY WOOD. 26 PRELIMINARY RESULTS 2024 February 2025 BISHOPS WALTHAM
Slide 27: Income Statement
APPENDIX 1 INCOME STATEMENT £m (unless otherwise stated) FY24 FY23' Revenue 618.2 657.5 Cost of sales (531.4) (551.9) Adjusted gross profit 86.8 105.6 Other operating income 75.8 44.7 Other operating expenses (69.9) (40.9) Administrative expenses (60.8) (58.0) Net impairment losses on financial asse
Slide 28: Balance Sheet
APPENDIX 2 BALANCE SHEET As at 31 October, £m 2024 2023 Non-current assets 127.8 69.9 Inventories 1,137.4 1,164.8 Cash and cash equivalents 73.8 162.6 Other current assets 103.2 133.0 Total assets 1,442.2 1,530.3. Non-current interest-bearing loans + borrowings (63.2) (83.5) Non-current provisions (
Slide 29: Cash Flow
APPENDIX 3 CASH FLOW <m FY24 FY23 cestel neat rset profit before changes in working (120.8) 43.0 (Increase)/decrease in trade and other receivables (10.6) 27.0 Decrease/(increase) in inventories 22.2 (182.3) Increase/(decrease) in trade and other payables and provisions 35.6 (31.9) Contribution to r
Slide 30: Combustibles
APPENDIX 4 COMBUSTIBLES Buildings in scope of Self Remediation Terms Over 18 metres 11-18 metres Cost per unit Extensive combustible materials 33 41 High Timber frame with combustible materials - 12 Medium Limited combustible materials 46 95 Medium Traditional cavity wall - 22 Low No combustible mat
Slide 31: Survey Status
APPENDIX 5 SURVEY STATUS Complete Todo Total % FRAEW external assessments 21 80 291 73% FRA internal assessments 169 122 291 58% CREST NICHOLSON 31 PRELIMINARY RESULTS 2024 February 2025
Slide 32: Completed Sites
APPENDIX 6 COMPLETED SITES Completed sites charge Year end Half year <m final estimate Underlying 7.3 5.9 Exceptional 25.0 25.5 Total 32.3 31.4 32 PRELIMINARY RESULTS 2024 February 2025 CREST NICHOLSON
Crest Nicholson Holdings — FY2024 Earnings Presentation on 6ix