(Alliance News) - Crest Nicholson Holdings PLC on Tuesday said it appointed a chief commercial officer of a rival housebuilder to become chief executive officer later in the year as it posted a profit fall.
The Surrey, England-based housebuilder said pretax profit declined 30% to GBP23.1 million in the financial year ended October 31, from GBP32.8 million a year ago.
Revenue fell 28% to GBP657.5 million from GBP913.6 million.
Home completions dropped similarly by 26% to 2,020 from 2,734.
The company cited a weakened sales market, supply chain pressures and elevated interest rates, as well as the UK government's mini budget in September 2022 which it said caused "a temporary collapse in housing sales," with confidence returning gradually "with the establishment of a more stable government and the subsequent easing of mortgage rate."
Still, Crest declared a final dividend of 11.5 pence per share, unchanged from a year ago, bringing the total to an unchanged 17p.
Looking ahead, CEO Peter Truscott said: "We expect the housing market will remain challenging in 2024 with elevated interest rates remaining in place until inflation falls to its target level. In addition, the absence of any government support for first time buyers, coupled with higher borrowing costs continues to impact affordability. However, there are reasons to be optimistic with year-on-year inflation now halved and real wage growth starting to be felt in households across the UK. We have acquired some excellent sites that are at advanced stages in the planning process, leaving us well positioned to trade in whatever market conditions emerge."
Meanwhile, Crest appointed Martyn Clark as CEO from later this year. Clark is the current chief commercial officer at York, England-based housebuilder Persimmon PLC. He replaces outgoing Crest CEO Peter Truscott who has been CEO since 2019.
Crest Chair Iain Ferguson said: "Martyn brings a wealth of experience in the housebuilding industry which will be of huge benefit to Crest Nicholson at this important time for the group. We very much look forward to working with him."
Crest shares rose 1.1% to 207.00 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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Crest Nicholson (CRST)
Persimmon (PSN)