Market's view on Crest Nicholson
Published on April 2024
- There was a dividend issued and received by shareholders.
- UBS raised the price target for Crest Nicholson to 225p from 215p, influencing a share price increase.
- Concerns were raised about the state of the UK housebuilding sector, citing issues like dwindling cash reserves due to dividends, low demand, and regulatory investigations.
- Crest Nicholson reported defects in buildings completed before 2019, estimating repair costs up to £15m, and plans to appoint third-party consultants for further assessments.
- The forecast for FY24 anticipates completing 1,800 to 2,000 homes, with the majority of completions expected in the second half of the year.
- Discussions about potential takeovers of Crest Nicholson surfaced, with speculations on candidates like Barratt due to its suitable fit.
- The company’s involvement in anti-competitive behaviors was discussed, noting that it was not under investigation by the CMA, unlike other housebuilders.
- There were expectations of a further profit warning in June when consultants are due to report additional costs.
- A change in leadership was announced with Martyn Clarke from Persimmon set to take over as CEO of Crest Nicholson.
- Various stock price speculations and trading updates were shared, including reactions to market movements and strategic decisions by the company.