Full Year 2024 Crest Nicholson Holdings PLC Earnings Call Transcript
Key Points
- Crest Nicholson Holdings PLC (FRA:C38) reported an improved cash position, reflecting better management of work in progress and deferred land payments.
- The company is on track to achieve a five-star customer satisfaction rating, indicating a strong focus on customer experience.
- There has been a reduction in build cost inflation to near zero, providing better visibility of the cost base.
- Crest Nicholson Holdings PLC (FRA:C38) has made significant progress in reducing greenhouse gas emissions, with an 18% reduction in Scope 1 and 2 emissions compared to 2023.
- The company has a strong land portfolio that is well-aligned to support medium-term growth.
- Revenue for the year decreased by 6% to GBP618.2 million, reflecting a challenging macro environment.
- Gross margin fell from 16.1% to 14%, impacted by completed site charges and flat sales prices.
- The company faced exceptional items totaling GBP166.1 million, including a significant charge for combustible materials.
- Legacy issues, such as fire provisions, have weighed heavily on performance, requiring substantial provisions and remediation efforts.
- There are still a number of low-margin sites in the portfolio that need to be traded through, affecting overall profitability.
Good morning, everyone and welcome to full year results presentation. I'm the CEO of Crest. It's good to see you all here today. I'm joined by Bill, CFO. You all know, well, in terms of structure of the meeting, I'll give a brief introduction. We will go through the numbers and then I'll spend some time taking you through my first impression of business and some of the initial actions that we have taken over the last eight months.
I'll also provide my views on the opportunities that exist in price and the changes that need to be made to strengthen the business so it can capitalize on these, thereby delivering value to our shareholders and other stakeholders.
Before I start, I just wanted to provide you all with a brief overview of my experience in the industry. I spent almost 40 years in the house building sector first with rural homes and then [Persimmon], as you might imagine, throughout that long career, I've had a wide range of operational and commercial leadership roles around the UK that combinated with my most
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