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Fact Summary
Total Facts:
472
Tag Summary
Namespace |
Primary Items |
Dimensions |
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Total |
|---|---|---|---|---|
| crestnicholsonholdingsplc | 18 (8%) | 1 (50%) | 2 (40%) | 21 (9%) |
| ifrs-full | 216 (92%) | 1 (50%) | 3 (60%) | 220 (91%) |
| Total | 234 (100%) | 2 (100%) | 5 (100%) | 241 (100%) |
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Annual Report
and Accounts
2024
Contents
Strategic Report
Chairman’s review 02
Chief Executive Officer’s statement 04
Our investment case 08
Business model 09
Strategic priorities 11
Market environment 13
Stakeholder engagement 15
Sustainability 19
Key performance indicators 28
Financial review 30
Principal risks and uncertainties 32
Task Force on Climate-related
Financial Disclosures 40
Non-financial and sustainability
information statement 49
Viability statement 50
Governance
Chairman’s introduction 52
Role of the Board 53
Board of Directors 54
The Board’s year 56
Board performance review 62
Nomination Committee report 63
Audit and Risk Committee report 66
Directors’ remuneration report 74
Directors’ report 92
Financial Statements
Statement of Directors’
responsibilities 95
Independent auditors’ report 96
Consolidated income statement 105
Consolidated statement of
comprehensive income 106
Consolidated statement of changes
in equity 107
Consolidated statement of
financial position 108
Consolidated cash flow statement 109
Notes to the consolidated financial statements 110
Company statement of
financial position 153
Company statement of changes
in equity 154
Notes to the Company financial statements 155
Alternative performance measures (unaudited) 158
Historical summary (unaudited) 160
Shareholder services 161
Glossary 162
Cautionary statement
The Annual Report and Accounts for the year ended
31 October 2024 as contained in this document
(Annual Report), contains information which readers
might consider to be forward looking statements
relating to or in respect of the financial condition,
results, operations or businesses of Crest Nicholson
Holdings plc (Company or Group). Any such
statements involve risk and uncertainty because
they relate to future events and circumstances.
There are many factors that could cause actual
results or developments to differ materially from
those expressed or implied by any such forward
looking statements. Nothing in this Annual Report
should be construed as a profit forecast.
Approval
The Strategic Report for the financial year ended
31 October 2024 as presented on pages 2-50 was
approved by the Board of Directors on 3 February
2025 and signed on its behalf by:
Penny Thomas
Group Company Secretary
04
Chief Executive
Officer’s statement
56
The Board’s year
28
Key performance indicators
Defined terms are set out in the Glossary on page 162
Crest Nicholson
Annual Report and Accounts 2024
Financial StatementsStrategic Report Governance
(Loss)/profit before tax
£(143.7)m
2023: £23.1m
Adjusted operating profit margin
1
5.1%
2023: 7.7%²
Return on capital employed
1
4.1%
2023: 7.3%²
Net (debt)/cash
1
£(8.5)m
2023: £64.9m
Operating (loss)/profit margin
(20.8)%
2023: 4.5%
Sales
1
£658.1m
2023: £692.1m
Revenue
£618.2m
2023: £657.5m
Adjusted profit before tax
1
£22.4m
2023: £48.0m²
We have responded to difficult trading
conditions with decisive actions.
1 Sales, adjusted profit before tax, adjusted operating profit margin, return on capital employed and
net (debt)/cash are non-statutory alternative performance measures (APM) used by the Directors
to manage the business, which they believe should be shared for a greater understanding of the
performance of the Group. The definitions of these APM and the reconciliation to the statutory
numbers are included on pages 158-159.
2 Represented as per note 29 of the financial statements.
At Crest Nicholson, we build high quality
homes and create vibrant communities
in sought-after locations where
homeowners can settle and thrive.
We aspire to have an open and honest culture,
creating a positive, effective and collaborative
environment, where all colleagues are
empowered to deliver our success. We are
focused on the wellbeing of our people and
developing talent. Our values underpin how we
implement our business strategy and enable us
to deliver against our goals.
OUR PURPOSE OUR CULTURE OUR VALUES
OUR YEAR IN REVIEW
Working together
Being the best we can be
Doing the right thing
Leaving a positive legacy
Championing our people
1
3
2
4
5
01
Crest Nicholson
Annual Report and Accounts 2024
Financial StatementsStrategic Report Governance
Our 2024 performance was negatively affected
by both external and internal factors. Persistently
high mortgage rates and a sluggish housing
market recovery have placed additional pressure
on the business environment and particularly on
the housing sector.
Internally, we executed a carefully planned Chief
Executive Officer succession in early summer.
We then faced considerable operational disruption,
as distractions from the unsolicited Bellway bid had
a noticeable impact on our performance for the
second half of the financial year.
2024 PERFORMANCE
We completed 1,873 homes, with adjusted
profit before tax at £22.4m. During the year, we
made positive progress in addressing three
difficult areas which have impacted our financial
performance: completed sites, fire remediation
and complex legacy sites. Management has
undertaken a comprehensive review, supported
by external consultants, to evaluate the
remediation requirements across our portfolio of
sites. Subsequently, the Group made appropriate
provisions to cover the necessary rectifications
which largely consist of several legacy sites with
identified building defects. Within these provisions
there are also costs related to obligations that
the Group may retain after legal completion, such
as road and public space adoption, third-party
contracts, and remedial work for defects. It is
reassuring to have these issues identified and
addressed, allowing us to resolve them properly
and focus on moving forward. Significant efforts
and progress were made in assessing and
provisioning fire remediation costs for all buildings
under the Developer Remediation Contract,
which I believe will provide greater clarity, reduce
uncertainty and distraction, and allow us to
Chairman’s review
focus on driving the business forward. I would
like to thank everyone who contributed to this
tremendous progress.
Management is focused on completing the few
remaining projects which we class as complex
legacy sites. I am pleased to report that Farnham,
our largest remaining complex legacy site,
achieved practical completion, with the majority
of homes occupied in the development. This
marks an important step forward as we finally
conclude this chapter over the next year or so
and focus exclusively on building good quality
homes and achieving normalised margins.
“ 2024 was an eventful
and challenging year
for Crest Nicholson,
marked by significant
macroeconomic and
geopolitical headwinds.”
Iain Ferguson CBE
Chairman
A focused and experienced team
02
Crest Nicholson
Annual Report and Accounts 2024
Financial StatementsStrategic Report Governance
Chairman’s review continued
PEOPLE
Our colleagues are at the heart of everything we
do, and their dedication and resilience continue
to be our greatest asset. I am pleased that our
people remain committed to navigating this
difficult landscape with determination and focus.
I want to personally thank every colleague for
their unwavering commitment during the period
of the recent attempted takeover which created
uncertainty about their futures. Despite this, our
teams have embraced new technologies and
processes to deliver better customer services,
enhance operational processes and bring
greater accountability throughout the business.
We remain committed to investing in the growth
of our colleagues’ capabilities, providing training
and development opportunities to nurture talent,
and enhance our company culture to make Crest
Nicholson a great place to work. It is through their
efforts that we will strengthen our business and
position ourselves for future success.
BOARD CHANGES AND LEADERSHIP
In June 2024, Peter Truscott, Chief Executive
Officer, retired and stepped down from the Board
after five years at Crest Nicholson. The Board
and I would like to thank Peter for the
contribution he made over the past five years.
The Board appointed Martyn Clark as the
new Chief Executive Officer and a member of
the Board in June 2024. Martyn brings vast
operational and commercial experience in
housebuilding, with a detailed understanding
of every aspect of the business. His first weeks
in the business were compromised and made
particularly challenging by the unsolicited
and unsuccessful Bellway takeover approach.
Since then, Martyn has moved quickly to lead
his senior team to focus on improvements in
operational efficiency, product quality, enhanced
management information, and a positive shift in
both culture and employee attitude. The Board
and I are confident that Martyn will continue to
drive meaningful change to further improve Crest
Nicholson’s performance in the coming years.
DIVIDEND
The Group is maintaining its dividend policy
of two and a half times cover, and the Board
is recommending a final dividend of 1.2 pence
per share (2023: 11.5 pence), and subject to
shareholder approval, this will be paid on
25 April 2025, which will make the total dividend
2.2 pence for 2024 (2023: 17.0 pence).
OUTLOOK AND FUTURE FOCUS
The government budget in October 2024
confirmed an increased focus on reforming the
planning system which could help to address
housing supply challenges. However, increases in
overall taxation levels, particularly in employers’
National Insurance, are likely to depress
economic growth and will feed through into
higher costs. There were no measures aimed at
stimulating demand for new housing, especially
with reducing support for first-time buyers. While
the recent interest rate reduction is encouraging,
we anticipate a slower trajectory towards
more affordable mortgage rates, especially
given the outlook for limited economic growth
in the coming year. We will closely monitor
developments and look forward to further insights
in the government’s spring briefing.
2025 is a reset year for Crest Nicholson. We have
sufficient land with full planning permission for our
budgeted completions and the key focus will be
to build high quality homes with excellent
customer service and to continue to optimise
our land bank to maximise value. We are already
seeing the benefits of increased operational
efficiency and rigorous focus on quality being
instilled under Martyn’s leadership.
The Board is confident in the Group’s ability to
navigate current market challenges and believes
that the strength of the brand, the inherent value
of the land bank and the rigorous operational
focus of the leadership team positions us well
for the future.
Looking ahead, in spring 2025, Martyn will
provide more details to the market on our reset
strategy and future vision for Crest Nicholson.
Iain Ferguson CBE
Chairman
03
Crest Nicholson
Annual Report and Accounts 2024
Financial StatementsStrategic Report Governance
It is my pleasure to present my first set of results
as Chief Executive Officer of Crest Nicholson.
The unique circumstances of my introduction
to the business coincided with the unhelpful
distraction of an unsuccessful, unsolicited
takeover approach for the Group. This allowed
me to gain real insight into, and a comprehensive
understanding of, our operations, our people,
our strengths, the areas we need to address
and the many opportunities for us to grow the
business profitably and create value for our
shareholders within a more condensed period.
Iam encouraged by the potential I see within the
Group and am increasingly confident of being
able to shape Crest Nicholson into a best-in-class
UK housebuilder.
My initial focus has been on implementing early
operational changes at pace, and ensuring we
have a solid foundation for the years ahead.
As part of that, I have reviewed the existing
Executive Committee to ensure we have the right
breadth of expertise and capability, in order to
enhance decision making, strengthen internal
controls, address operational challenges and
drive future strategic priorities.
I have also made considerable progress in reviewing
our strategy and defining my long-term vision for
Crest Nicholson to re-invigorate the business for
growth, focusing on three key strategic priorities:
building homes of exceptional quality efficiently;
delivering outstanding service to customers,
and optimising value from the Group’s high
quality land portfolio;
growing private sales and emphasising value-
led growth to enhance returns and margins.
Chief Executive Officer’s statement
I look forward to sharing with the market in March
more information on those strategic priorities and the
initiatives I will implement to maximise sustainable
value for all Crest Nicholson shareholders.
2024 has undoubtedly been a challenging year
for Crest Nicholson. Previous failures to identify
and implement appropriate internal controls
within the Group, particularly in relation to legacy
operational issues on complex developments
and legacy sites have significantly impacted our
financial performance. We have taken steps to
address these shortcomings. Furthermore the
market was affected by the impact of persistently
high interest rates and subdued consumer
confidence. Despite these challenges, we have
delivered 2024 results in line with guidance
updated at the start of my tenure, and through a
rigorous focus on cash management have exited
the year with better than expected net debt. This
is a testament to my colleagues’ dedication and
commitment during highly uncertain times, and I
thank them for their hard work.
“ We delivered 2024 results
in line with guidance
updated at the start of my
tenure, a testament to my
colleagues’ dedication
and commitment during
challenging times.”
Focusing on the future
Martyn Clark
Chief Executive Officer
04
Crest Nicholson
Annual Report and accounts 2024
Financial StatementsStrategic Report Governance
Chief Executive Officer’s statement continued
FIRST IMPRESSIONS
Since joining, I have been encouraged by the
strengths I see within our business. We have a
valuable portfolio of land assets, which positions us
well to optimise value creation as market conditions
evolve. The team is talented and dedicated.
However, my initial assessment has identified
certain operational areas that need attention
to improve efficiency and performance. There
is also an opportunity to streamline processes,
tighten controls and enhance our approach to
project execution to meet our goals effectively.
ACTIONS TAKEN DURING THE YEAR
My initial focus has been on implementing early
operational changes and ensuring we have a
solid foundation for the years ahead. As part
of that, I have expanded the existing Executive
Committee to ensure we have the right breadth of
expertise and capability in order to enhance decision
making, strengthen internal controls, address
operational challenges and drive future strategic
priorities. We have also taken several key actions
during the year to set us on the right path, and
support our strategic goals focusing on actions that
can deliver immediate improvements. For example,
we are upgrading our management information
systems, which will enable better and more timely
data-driven decision making across the business.
I have also noticed a marked positive cultural
change over the past few months, as cross-functional
teams are now working together more effectively,
creating a unified focus on our strategic priorities
and promoting a results-driven environment.
Adjusted profit before tax
£22.4m
2023: £48.0m
1
Homes completed
1,873
2023: 2,020
BUILDING HOMES OF EXCEPTIONAL
QUALITY, EFFICIENTLY
Building right first time is essential to deliver
an exceptional customer experience and drive
profitable growth. It reduces warranty claims and
costs and hence safeguards our brand value while
maintaining the trust of our customers. In order
to optimise resources to maximise returns, we
have taken significant steps in recent months to
enhance our build quality, to ensure operational
efficiency and to manage our work in progress
effectively. This means that our build rate
needs to be aligned with our expected sales
rate and costs need to be closely monitored
for each development. We appointed a new
Group Commercial Director, whose leadership
has driven the implementation of an enhanced
system for establishing site budgets and managing
cost effectively in the second half of the year.
Additionally, to further improve build precision, we
introduced new software to track build progress
and sign off quality assessments at each build stage,
including the capture of photographic evidence.
We have continued to focus on improving our
build quality and are pleased that independent
measures of quality assessed by NHBC and
Premier Guarantee show an improvement on
2023. Furthermore, NHBC has been appointed
to carry out Construction Quality Reviews on all
sites. These will serve as an independent key
performance indicator, providing a quantitative
assessment of build quality across construction
sites, which we will use to assist us to align with
best practices and maintaining high standards in
construction quality.
Health and safety remain a top priority for the
Group. We continue to maintain the highest
standard to ensure the wellbeing of our teams
and subcontractors, reinforcing our commitment
to a safe working environment.
DELIVERING OUTSTANDING SERVICE TO
CUSTOMERS
It is essential to recognise that we are, at our
core, a business offering customers one of
the most significant emotional and financial
purchases of their lives. We have taken
meaningful steps to enhance our customer
service, ensuring a seamless and exceptional
experience throughout the entire sales journey
and beyond. Since January 2024, we have
consistently achieved a customer satisfaction rating
above the 90% required to achieve 5 star status
from the Home Builders Federation. Our sales team
has undergone comprehensive recurrent training
to enhance the skills to better meet our customers’
needs. Initial feedback from both the sales team and
customers has been positive and we will continue
to invest in training going forward. Additionally, we
have repositioned our incentive structure to align with
our goal of maximising value while maintaining high
service standards.
We are developing a new customer portal,
which will not only support customers during the
reservation stage, but also provide them with
ongoing access and visibility of the progression
of the sales and build process for their home.
This is due to be rolled out during 2025. Post-
sales customer service has also been significantly
improved, with dedicated site teams now in
place to address warranty items promptly and
efficiently. The introduction of new systems to
track performance in resolving warranty matters
will help us significantly improve customer
response times. These enhancements reflect our
unwavering commitment to delivering quality and
ensuring customer satisfaction.
The development of our product offering will be
central to our activity in 2025. Several factors
will drive these initiatives including changing
regulations (such as the Future Homes Standard),
raising quality and, more importantly, meeting the
needs and aspirations of our customers. We have
already enhanced some of the specifications of
our homes.
1 Represented as per note 29 of the financial statements.
05
Crest Nicholson
Annual Report and accounts 2024
Financial StatementsStrategic Report Governance
Chief Executive Officer’s statement continued
OPTIMISING VALUE FROM OUR HIGH
QUALITY PORTFOLIO
Our land portfolio is strategically located in highly
sought-after areas. We are focused on leveraging
our high quality land assets to maximise their
value, ensuring that every site is optimised for
profitability. The portfolio includes a mix of site
sizes. We are conducting a comprehensive
review of our land bank with a focus on managing
our cash outlay while increasing the number of
outlets over the medium term.
FIRE REMEDIATION
In December 2024, the Group signed up to
the Joint Plan to accelerate developer-led
remediation and improve resident experience
(Joint Plan to Accelerate), requiring developers
to complete all assessments of buildings under
the scope of the Developer Remediation Contract
by July 2025 and commence work on 100% of
affected buildings by July 2027. The timing aligns
closely with our revised business plan, with the
associated costs integrated into our budgets and
cash flow forecasts.
The Group has made significant progress,
supported by our newly centralised Special
Projects division, and is nearing completion
of its assessment of all buildings within the
scope of the Developer Remediation Contract.
As a consequence of additional and better
information, we are now in a position to account
for the expected costs for known buildings within
scope. As a result, the total fire remediation
provision at the 2024 year end is £249.3m and
compares with £145.2m at the 2024 half year.
In determining the quantum of the provision, whilst
acknowledging that no approach can eliminate all
uncertainty, the Group has applied its experience
to date and the most plausible current risk scenario
to ensure it accounts for its probable liabilities
and maintains an appropriate and responsible
approach to fire safety remediation provisions.
The provision does not include any third-party
recoveries or contributions that could offset these
costs. The remediation programme is expected
to be completed during 2029, exceeding the
obligations of the Joint Plan to Accelerate, and
is intended to be funded from the Group’s cash
flow and balance sheet. This approach highlights
our commitment to transparency and financial
responsibility, and we believe it should address
lingering concerns regarding Crest Nicholson’s
future legacy fire-related liabilities, providing greater
confidence in our valuation and business case.
Further details can be found in the Financial
Review on pages 30-31.
SUSTAINABILITY
We remain committed to our sustainability
strategy which focuses on three priority areas:
protecting the environment, making a positive
impact on our communities, and operating the
business responsibly. In 2024, we made good
progress against our own targets and continue
to work collaboratively with our suppliers and
the wider industry on a range of sustainability
initiatives. More details on our sustainability
progress and focus can be found on pages 19-27.
STRATEGIC FOCUS FOR 2025
In the coming year, our primary goal is to
reinvigorate the business for growth. During
the year, I have undertaken a comprehensive
review to understand the business, which has
included obtaining both internal and external
perspectives. This has allowed me to identify
the market opportunity and craft a strategy
that will allow us to maximise that opportunity
and optimise the Group for sustainable growth,
enhanced profitability and consistent shareholder
value creation, based upon the three key
strategic priorities set out above. The changes
to the business and the strategic direction we
are heading will not happen overnight but I am
confident we will deliver success.
I look forward to updating you in March 2025 with
the findings when I will also set out our medium-
term strategic focuses and goals for ensuring
Crest Nicholson realises its full potential.
SUMMARY AND OUTLOOK
2025 will be a year of transition for Crest
Nicholson as we implement and start to deliver
on our new strategy for profitable growth. We
are well-positioned with sufficient land with full
planning permission to support our planned
outlets and volumes.
The broader economic landscape is showing
tentative signs of stabilisation, even if at a more
tempered pace than expected, providing a slightly
more supportive environment for growth in 2025.
A more stable and benign interest rate climate will
help to restore confidence among both developers
and homebuyers, reducing financial pressures and
enabling greater investment in housing projects.
Additionally, the government has intensified its
efforts to address the critical shortage of homes
in the UK, introducing targeted measures to
streamline and improve the planning process.
Such initiatives are not only vital for addressing
the housing crisis but also provide a strong
foundation for the sector to meet the country’s
pressing demand for homes.
Reflecting on my first months, I am encouraged by
the progress we have made and the potential we
have to drive meaningful changes. I am confident
that we can navigate the challenges ahead. I look
forward to leading Crest Nicholson through this
transformative period, creating a stronger, more
resilient business and optimising the Group for
sustainable growth, enhanced profitability and
consistent shareholder value creation.
Martyn Clark
Chief Executive Officer
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Chief Executive Officer’s statement continued
Q
What is your overarching vision for the Group, and
how do you see it evolving within the housebuilding
industry over the next five years?
A
My vision is for Crest Nicholson to be a best-in-
class housebuilder – and to my mind this means
being renowned for building high quality homes,
having excellent customer service, being a good
business partner for our suppliers, being a place
where people can build long-term, rewarding
careers, and maximising value by creating
sustainable returns for our investors. We are
selling one of the most significant assets anyone
will ever purchase in their lifetime. Over the
next five years, I want us to set a benchmark for
industry standards in both quality and customer
satisfaction. We will be hosting a Capital Markets
Day in March, and I look forward to updating
the market on my vision and future plans for the
business in more detail.
Q
What are the main challenges and opportunities
you foresee for the business in the medium term,
and how do you plan to address them?
A
Over the medium term, it is clear that the UK
needs more homes built. We want to make our
contribution to that effort, in a sustainable way
which helps all our stakeholders. The current
market backdrop is beginning to show signs of
improvement. Interest rates are gradually coming
down, and there are encouraging signals from the
government on planning reform. While external
factors continue to influence buyer confidence
and affordability, these positive developments
provide a more optimistic outlook. Internally,
we are focused on implementing reasonably
significant changes that will take time to embed.
This period of transition is an opportunity to
strengthen our operations, refine our processes,
and position ourselves to fully capitalise on a more
favourable market environment as it emerges.
Q
Reflecting on your first six months, what have been
your key takeaways, and how have they shaped
your understanding of the business and its culture?
A
It has obviously been an eventful few months!
Reflecting back, I think my overriding sense
is one of optimism. There is clearly a great
deal to be done but I can see how we take
Crest Nicholson forward and it has the strong
foundations to be a best-in-class housebuilder.
These foundations include a quality land
portfolio, a dedicated team and a trusted brand.
As I say though, there is more to be done.
Culturally, the organisation required some
reshaping to encourage collaboration and better
communication, while operationally there is room
for improvement. I look forward to sharing my
thoughts on that further in March.
Q&A
with Martyn Clark,
Chief Executive Officer
Q
What milestones or achievements should
stakeholders expect to see as you implement your
vision and strategy in the coming years?
A
My key focus is on returning the Group to
industry-level operating margins and increasing
our return on capital through appropriate
land acquisitions and operational efficiency.
Stakeholders will see a more disciplined approach
to land buying, rigorous cost control, and enhanced
customer engagement. Our goal is to build
homes that meet high quality standards, deliver
a seamless sales process, and solidify our
reputation as a company customers trust for one
of the most significant investments of their lives.
Q
What have been the most valuable lessons you’ve
learned in your leadership journey so far?
A
The most important lesson is the power of teams
and teamwork. I hope to foster an open culture in
the business and encourage our people to talk to
me, the leadership team and their colleagues. No
individual has the answer to every question but
by working together and collaborating, we will
determine the most appropriate outcome.
I’ve also realised that resilience and flexibility
are important. Challenges will come, but staying
focused on the bigger picture while being ready
to adapt is key to moving forward. Lastly, it’s all
about empowering people. When you trust and
invest in your team, you create a culture where
everyone feels motivated to step up and deliver
their best.
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Our investment case
RESILIENT HOUSING
MARKET FUNDAMENTALS
STRATEGIC LAND AND
PARTNERSHIPS
ADAPTIVE LAND PORTFOLIO
SUSTAINABILITY COMMITMENT
A strong proposition
with growth potential
The housing market benefits from a growing
population and limited housing supply
The lending market remains functional
and stable
The land division ensures a strong pipeline of
strategic land for medium-term growth
We benefit from a diversified approach,
including working with the private rented
sector and partnerships, providing resilience
against market fluctuations
We hold a high quality strategic land portfolio,
ensuring flexibility in land development with a
strong five-year land bank
We hold land in desirable locations to capture
growth as the market recovers
We remain committed to protecting the
environment including achieving net-zero
emissions by 2045 and 100% renewable
electricity by the end of 2025
We make a positive impact on our communities
and deliver high quality energy efficient homes
for our customers
BRAND, QUALITY AND
PLACEMAKING
MAINTAINING OUR FINANCIAL
POSITION
Our established brand, known for quality and
placemaking, helps differentiate us as a niche
housebuilder in the market
We have a strong reputation for creating
attractive, sustainable communities
We conduct rigorous cash management and
utilise internal working capital opportunities
such as enhanced WIP management
We maintain our balance sheet to provide
optionality and sufficient funding headroom
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Business model
VALUE CREATION LAND ACQUISITION TO CUSTOMER SERVICE
Land acquisition
Acquiring land in desirable
locations is essential for creating
value. Our focus is primarily in
the southern regions of England,
where land supply is scarce and
demand for homes is high.
We have a rigorous, formal land
acquisition process. We set
minimum gross margin and return
on capital employed requirements
for each site, and consider
location, planning constraints,
site suitability, viability,
profitability and alignment
with our strategic goals.
Design, planning and
placemaking
Our approach creates vibrant,
sustainable and community-
focused developments. Our
designs balance functionality
and aesthetics with attention to
street scenes and diverse house
types. We prioritise accessible
green spaces, pedestrian-
friendly pathways and community
amenities, ensuring developments
meet housing needs while
creating connected, resilient
communities where people thrive.
Selling our homes
Our process ensures a
seamless journey from initial
enquiry to completion of
purchase. Our dedicated sales
team engages and identifies buyers’
needs, provides detailed home and
community information, and supports
mortgage applications and pre-
approvals. Throughout construction,
updates are shared, and a thorough
final inspection is conducted to meet
quality standards.
Construction
We instil a right first time
attitude in building good quality
houses to a consistent standard.
Our construction process is
meticulously planned and
monitored to ensure quality,
efficiency and compliance.
The build team follows strict
programmes and standards, with
each phase meeting the New
Homes Quality Code with rigorous
inspections and safety checks.
Advanced project management
tools track progress in real time,
enabling swift issue resolution
and ensuring smooth, on-time
completion that meets our high
standards and client expectations.
Customer experience
Central to our customer
commitment is delivering a high
quality home and minimising the
number of issues that customers
require our support with after
they move in. Our personal and
responsive post-sales service, led
by customer relations managers,
addresses any questions or
concerns, ensuring a smooth
transition into homeownership.
The introduction of new systems
to track performance in resolving
customer issues has significantly
improved response times.
How we build value
1 2 3 4 5
Our land acquisition appraisals embed
sustainability principles. We consider
factors such as biodiversity, water
conservation measures and habitat
protection. We prioritise locations
with access to sustainable transport,
including public transport links and
major road networks, and ensure space
for social infrastructure to promote
thriving, inclusive communities.
Sustainability is integrated across
every stage of design and planning. We
incorporate biodiversity net gain, design
attractive green spaces to encourage
outdoor activity and wellbeing, and plan
for sustainable connectivity through
walking, cycling and public transport links.
Social infrastructure, such as schools,
healthcare facilities, play areas and
community hubs, is carefully considered
to deliver a lasting positive legacy.
We deliver high quality energy
efficient homes and provide buyers
with information on the sustainability
features of their homes. Alongside
high performance insulation, many of
our homes include solar PV panels,
electric vehicle charging points and
an increasing number of sites are
installing air source heat pumps. All
new houses achieve a minimum EPC B
rating to support energy efficient living.
We integrate sustainable practices
throughout our construction activities,
focusing on resource efficiency and
waste reduction. On-site recycling
stations and waste segregation
processes maximise landfill diversion,
while we work to conserve and
enhance natural habitats around the
site. Additionally, protective measures
for wildlife, such as temporary fencing
and ecological monitoring, ensure
construction activities align with our
environmental stewardship commitment.
We deliver homes that prioritise
energy efficiency, helping to keep
running costs down. Sustainable
features support customers to live
more sustainably. Many developments
also incorporate measures to support
nature, alongside accessible green
space and social infrastructure,
creating more enjoyable spaces
for residents.
INTEGRATING
SUSTAINABILITY
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Business model continued
PEOPLE
Skilled employees are essential in building
and delivering homes that meet regulatory
standards and customer expectations. A strong
focus on workforce development, through
training, health and safety measures and
employee wellbeing, helps ensure efficiency,
innovation and sustainability in operations.
Engaging a motivated, well-trained workforce
enhances productivity and contributes to
maintaining the Group’s reputation and long-
term growth.
DESIGN AND INNOVATION
High quality design enhances our customer
proposition, ensuring long-term value and
customer satisfaction. Maintaining the flexibility
of house types allows for customisation while
improving construction efficiency. Innovation to
enhance the sales process and streamline the
build process can reduce costs and supports
safety, quality and service.
NATURAL AND MANUFACTURED
RESOURCES
Natural resources like timber and aggregates,
alongside manufactured materials such
as bricks and steel, are the foundation
of our building operations. Sourcing
materials responsibly supports sustainability
andminimises environmental impact.
Weare committed to reducing waste and
optimising resource use which controls costs
while enabling us to meet regulatory and
environmental standards.
PARTNERSHIPS
We have good relationships with the private
rented sector, landowners and government
bodies. These collaborations provide us
with access to key development sites, shared
resources and funding opportunities, while
also facilitating compliance with regulations.
By working together, we can expand project
pipelines, improve delivery efficiency and
meet housing demand, driving growth and
long-term profitability.
FINANCIAL RESOURCES
Financial resources are a critical component
enabling investment in land, development
and construction. We have a diverse capital
structure ensuring flexibility and resilience.
We adopt a prudent approach to risk and have
a disciplined cash management approach which
helps us maintain financial stability, supports
sustainable growth and ensures the Group
can weather market fluctuations.
The financial structure of the Group prioritises
maintenance of the balance sheet, supported
by diverse financing. Rigorous cash
management ensures liquidity and operational
efficiency. Our capital allocation strategy
focuses on sustainable growth by investing
in the business and acquiring land, while
maximising dividends for shareholders. This
balanced approach underpins our long-term
financial stability and commitment to delivering
shareholder value.
DIVISIONAL STRUCTURE
The Group operates through regional divisions,
each handling local developments and
construction. There are two central divisions,
one specialising in strategic land acquisitions
and supporting projects through the planning
process, and the new Special Projects division
which focuses exclusively on fire remediation
and legacy sites.
RESOURCES AND RELATIONSHIPS
Our business needs key
resources and is dependent
on critical relationships
to operate efficiently.
What we use to create value
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Strategic priorities
Our strategy
Our strategy builds on our strengths
and addresses current challenges. It is
structured around five strategic priorities,
supported by four foundations.
OUR FOUNDATIONS
People
Read more on pages 26-27
Safety, health and environment
Read more on page 25
Financial targets
Read more on pages 30-31
Sustainability and social value
Read more on pages 19-24
LAND PORTFOLIO
OUR STRATEGIC PRIORITIES
Land Portfolio
Strategic Land and Partnerships
Placemaking and Quality
Operational Efficiency
5 Star Customer Service
We own or control a prime land portfolio
which offers the long-term stability of a
land pipeline for development and revenue
generation. It enables us to react swiftly to
growth opportunities when the market recovers.
2024 highlights
We successfully progressed planning applications with
13,935 plots now in our short-term land portfolio
Land acquisition appraisals considered sustainability-
related factors such as biodiversity net gain which support
long term value creation
Focus for 2025
Manage land portfolio suitable for the size of business
Drive planning consents forward to enhance the
operational deliverables andoptimise the value of
the landbank
Progress measured by land creditors as a % of net
assets and land portfolio gross margin
See KPIs on page 28
We manage acquisitions of strategic land in
a central function, to incorporate land at the
advanced planning stage into the short-term
land portfolio for development. We build
strategic relationships within the private
rented sector and with registered providers of
affordable housing.
STRATEGIC LAND
AND PARTNERSHIPS
2024 highlights
Good progress made in progressing planning permissions
for key strategic sites
Continued focus on progress through partnerships and
planning for strategic land
Focus for 2025
Affordable housing will remain a key composite of
our revenue
The private rented sector will provide a good source of
revenue for largersites
Progress measured by affordable unit completions
See KPIs on page 29
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Strategic priorities continued
The quality of the homes we build is a key
component of our strategy. It directly impacts
customer satisfaction, brand reputation and our
long-term value. Right first time, high quality
homes reduce defects, enhance durability and
have fewer maintenance issues, which lead
to stronger confidence from our customers.
Placemaking is important to create developments
that have a positive impact on our customers,
communities and the environment.
2024 highlights
Incorporated biodiversity net gain on all newplanning
submissions
Maintained our focus on creating desirable developments
in sought-after locations, such as the Windsor Gate
development which opened in theyear
Focus for 2025
Focus on precision and quality in the build process
Thorough internal inspection to ensure consistency
and reliability
PLACEMAKING
AND QUALITY
Progress measured by
EBIT and customer satisfaction scores
See KPIs on pages 28-29
OPERATIONAL
EFFICIENCY
We are driving increased operational rigour
and efficiency, managing costs effectively
and increasing value and productivity of the
business. This will ensure we are able to
optimise resources to support long-term
sustainable growth.
2024 highlights
Fully implemented our automated system across the
business managing payments, sales and financial
forecasting
Focused on governance oversight via improved
management information systems and embedding our
Operational Framework
Focus for 2025
Embed a right first time ethos throughout the Group
Align overheads to output and drive efficiencies through
process and policy reviews
Progress measured by net cash, greenhouse gas
emissions intensity and waste intensity
See KPIs on pages 28-29
Exceptional customer care and service is
fundamental in the housebuilding sector.
Providing customer care, with consideration
of what customers’ expectations are, is
always at the forefront of our minds. Strong
commitment to deliver high quality homes
and exceptional customer experience is at
the heart of everything.
5 STAR
CUSTOMER SERVICE
2024 highlights
7% improvement in customer satisfaction scores
New processes and software to enhance quality and
service after customers move into their new homes
Focus for 2025
Improve longer-term customer support
Continue to enhance the quality regime
Re-design elements of our housing range to meet new
regulatory requirements
Progress measured by customer satisfaction scores
See KPIs on page 29
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Market environment
Operating in a cyclical environment
The housing market has faced a long-
standing imbalance between supply and
demand, and the sector is influenced by
multiple economic indicators.
What’s happening?
Population growth and relatively static household
sizes have driven up demand, while housing supply
has failed to keep pace. This shortage has been
exacerbated by decades of underinvestment
in new housing, leading to increasing pressure on
the market and higher housing costs. The persistent
gap between demand and supply continues to
challenge affordability and access to housing across
the country.
GDP growth, while slowing in the second half of
2024 after a strong start, is still expected to start to
rise moderately in 2025. The economic rebound,
primarily driven by increased investment and stronger
government spending, will provide resilience and
lay the foundation for long-term growth. This will
create opportunities for renewed housing investment,
benefiting developers and buyers.
Vacancies in the labour market are nearing pre-
pandemic levels which could ease wage pressures
and reduce inflation, fostering economic stability.
Ongoing growth and employment prospects should
support buyer confidence, encouraging more
households to consider homeownership.
Risks and opportunities for Crest Nicholson
With moderated wage pressures helping to
stabilise inflation, consumer spending power may
improve. This more stable economic environment
should increase affordability for potential buyers,
supporting sustained demand for new homes
The ongoing shortage creates a sustained
demand for new homes, offering a stable market
to capitalise on. There are potential price growth
opportunities which will enhance margins.
The need to address the housing crisis could
result in government support in the form of
demand stimulus as well as more efficient planning
regulations and process. The introduction of
the new housing target of 300,000 homes per
annum is a positive sign which will require further
support such as a faster planning process and
more funding for affordable housing.
There are risks of shortage in materials supply
and skilled labour if the whole sector increases
build production, in turn leading to build cost
inflation.
The land market could tighten as competition for
land intensifies and the planning system is not
efficient enough to cope with increased demand.
GDP expected to grow at modest level
2Q24 3Q24 1Q254Q24 2Q25 3Q25
0.7
0.9
1.1
1.3
1.5
1.7
1.9
% change over the previous period
Source: Barclays Global Economic research
UK ECONOMY AND HOUSING SECTOR
Interest rates have a significant
bearing on the cost of borrowing
and the affordability of homes for
ourcustomers.
What’s happening?
In the first half of 2024, there were significant fluctuations
in mortgage rates, but there was a notable shift in the
second half of the year to more stable conditions.
With inflation anticipated to rise in early 2025, driven
by higher energy and services costs, affordability for
home buyers may be impacted. However, the Bank of
England’s gradual approach to interest rate cuts, with the
base rate expected to fall during 2025, offers a positive
outlook for mortgage affordability.
Decreases in mortgage rates will make it easier for
prospective buyers to enter the market. Stabilisation
of mortgage rates will lead to renewed buyer
confidence, which could help alleviate some of
the pressures caused by previous rate volatility.
Persistently high rental costs make it more difficult
for first-time buyers to save up for a deposit and
there are fewer mortgage products at reasonable
rates for higher loan to value mortgages.
Risks and opportunities for Crest Nicholson
Our focus on cost-efficiency can help to mitigate
the risks of a volatile lending market and
potentially a stretched affordability environment,
particularly for first-time buyers.
As inflation trends downwards, there is a
likelihood of more favourable borrowing
conditions, increasing demand for houses.
Diversifying portfolios, leveraging government
initiatives, and focusing on cost-efficiency
can help mitigate the risks while capitalising
on emerging opportunities in a challenging
economic environment.
5-year fixed mortgage rate – 75% LTV
2000 2005 20152010 2020 2025
0
1
2
3
4
5
6
7
%
Source: statista.com
LENDING MARKET AND AFFORDABILITY
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Market environment continued
The land market and
planning system are critical
for housing growth and
new home delivery.
What’s happening?
The operation of the planning system is a major
factor contributing to the under-delivery of housing
in the UK.
In December 2023, the government shifted local
housing targets from mandatory to advisory, and
removed the obligation for local authorities to
maintain a five-year rolling land supply. The target
has since been reinstated but as a result, many local
authorities paused their housing delivery plans for
the first half of 2024. This has been exacerbated by
under resourcing in planning departments to meet the
growing demand. The reintroduction of mandatory
housing targets by the government is seen as a
positive step to clear some of the historical backlogs.
Risks and opportunities for Crest Nicholson
We have a good quality land portfolio with
a land bank life of over five years based
on our current capacity. We are well positioned
to quickly capitalise on any improvements in the
planning system.
The sector will continue to face risks related
to planning delays as it will take time for new
regulations and processes to work through the
current backlog of planning permissions, but the
sector has significant opportunities, particularly
with the government’s efforts to streamline the
system and its drive to meet housing targets.
These factors, combined with a quality strategic
land bank, position us to capture future growth
when the housing market recovers.
The government’s recent policies
and regulatory reforms aim to boost
housing supply while reinforcing
standards of safety, quality
and sustainability.
What’s happening?
The Building Safety Act 2022 introduced
comprehensive reforms to improve building safety,
especially in multi-occupancy building developments,
mandating safety certificates, fire safety protocols,
and increased developer accountability. The Joint
Plan to Accelerate was introduced in December 2024
and requires that remediation work begins on 100%
of affected buildings by July 2027.
Regulations, including the Future Homes Standard
(set to be legislated in 2025) and the biodiversity
net gain requirement under the Environment Act
2021, are driving sustainable building practices.
The biodiversity mandate requires developers to
enhance biodiversity by at least 10% above the pre-
development baseline. Together, these measures are
shaping a sustainable future for UK housing.
Risks and opportunities for Crest Nicholson
We are committed to prioritising safety for all
residents living in a home built by the Group
that falls within the scope of the Developer
Remediation Contract, and are expediting the
process of fire remediation. During the year,
the fire remediation team was moved into a
newly created Special Projects division. This
highly skilled team is dedicated to assessing
and remediating the 291 affected buildings within
scope. At the beginning of January 2025 the
group has external wall assessments and internal
assessments on 211 and 169 buildings respectively,
each out of the 291 buildings identified. The Group
has committed to performing 100% of assessments
by July 2025. This will provide clarity and
reassurance to all stakeholders affected.
The Future Homes Standard will future-proof
our homes by delivering zero carbon ready
homes, supporting the UK’s greenhouse gas
emissions reduction goals. The transition to
low-carbon heating systems, such as air source
heat pumps, poses a risk if customers are not
properly supported in their use, while uncertainty
around government guidance on implementation
timelines and technical requirements could
impact our design and planning processes.
The biodiversity net gain requirement necessitates
integrating ecological enhancements into land
acquisition plans, potentially increasing initial
costs and aligning with long-term sustainability
objectives. This initiative will make our
developments more attractive to buyers and
improve public perception.
LAND MARKET AND PLANNING GOVERNMENT AND REGULATORY ENVIRONMENT
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Stakeholder engagement
Section 172 statement
We work hard to understand
and meet the needs of our
different stakeholder groups,
engaging and creating value
for them.
Under Section 172 of the Companies Act 2006,
our Board has a duty to promote the success of
the Company, and in doing so it must consider a
number of matters when making decisions.
The Board acknowledges that it may have to make
decisions that affect one or more stakeholder
groups negatively. In challenging markets it is
even more important to reflect upon the need to
act fairly and with integrity. The factors influencing
Board decision-making, including stakeholder and
sustainability considerations, are shown below.
The following pages set out how the Group and
the Board have engaged with key stakeholder
groups during the year, and how their views
have been taken into account and influenced
the outcomes of decisions made.
Board decision-making
Risk reviews
Consideration of
impact of decisions
on stakeholders and
wider environment
Regular updates from
Sustainability and
SHE committees
Oversight of
purpose and value,
and monitoring of
culture
Regular updates from
senior management
Regular
engagement with key
stakeholders
External feedback on
market perception
Annual strategy
and budget
review
WHAT DO THEY EXPECT FROM US?
Our employees require a safe and healthy
working environment which is complemented
by a supportive, diverse and inclusive
culture. Our employees value challenging and
rewarding work that is enhanced by professional
development and career opportunities.
HOW WE HAVE ENGAGED
Board engagement
Received updates on employee matters
at each of its meetings and regularly
discussed employee turnover, engagement,
succession planning, appraisals, training
and development
Directors attended employee forums and
divisional roadshows to provide strategic
and trading updates
The CEO and CFO introduced monthly
business briefing calls including
Q&A sessions
Three Employee Voice Forum meetings
were held during the year
Group engagement
Employee forums were held as part
of the Culture Action Plan development
Employees were offered health and
wellbeing training and the ability to
enhance their mental health fitness through
online resources
Updates were provided to employees
from the CEO and CFO throughout the
unsolicited takeover bid
WHAT DID THEY TELL US?
Employees expressed a need for better
communication from management to
understand the direction of the business
Employees have a clear appetite for training
and development, including enhanced
onboarding for new colleagues
A need was identified for improved
recruitment standards and additional
support in standardising related processes
KEY OUTCOMES
A Culture Action Plan was developed and
initial actions implemented
Enhanced onboarding process
implemented
Fortnightly business briefings introduced
to support the dissemination of key
information across the Group
Launched online recruitment support
modules
Participation of 24% in the 2024
Sharesave scheme
Delivered 6,130 hours of in-person and
online training
FURTHER INFORMATION
See Our people on pages 26-27, Safety, health
and environment on page 25, Embedding and
monitoring culture on page 58 and Listening
and responding to employees on page 59.
OUR PEOPLE
Individuals who are directly employed by us.
Factors considered during the Board decision-making process
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WHAT DO THEY EXPECT FROM US?
Our customers expect quality homes in
attractive, safe communities, delivered on
time and offering good value for money.
They seek an excellent customer experience
throughout the homebuying journey and once
in occupation.
HOW WE HAVE ENGAGED
Board engagement
Received regular updates on actions taken
to enhance the customer experience from
the CEO, Group Operations Director and
the Group Sales and Marketing Director
Reviewed metrics on quality and customer
satisfaction scores at each meeting, providing
insights into strategic issues
Group engagement
Product development working groups
reviewed feedback on home designs
and specifications with a focus on
continuous improvement
Customer Service forums met to
review customer feedback and develop
improvements to processes
Meetings were held with partner
organisations to ensure good
working relationships
WHAT DID THEY TELL US?
Customers want a choice of home sizes
and layouts suitable for local needs,
with modern specifications and a range
of optional extras
Responsive and efficient after-sales service
is important
There is a growing desire for more energy-
efficient homes to drive down running
costs, built to a high quality for long
lasting value
Early engagement with partners is crucial
to delivering to requirements
KEY OUTCOMES
Consistently achieved a customer
satisfaction rating above the 90% required
to achieve 5 star status from the Home
Builders Federation when it is announced
in March 2025
7% increase in customer satisfaction score
compared with prior year
Trustpilot score of 4.3 (2023: 4.1)
Delivered 44% affordable homes, including
open market bulk sales
FURTHER INFORMATION
See the Chief Executive Officer’s statement
on pages 4-7.
CUSTOMERS
The people who purchase our homes. These can be individuals
or larger institutions that we work in partnership with.
WHAT DO THEY EXPECT FROM US?
It is important to investors that we navigate
the current market challenges, while
maintaining sustainable returns. They value
clear communication about our strategy and
performance, and expect strong leadership,
effective risk management and robust
governance.
HOW WE HAVE ENGAGED
Board engagement
The CEO and CFO met regularly with
investors, lenders and analysts including
hosting visits to sites under development
The Chairman and Senior Independent
Director consulted with the Group’s
major investors on strategic and
governance matters
Investor Relations updates including
feedback from investor roadshows were
presented at each Board meeting
The Chairman and Executive Directors
discussed the approach and response to
the unsolicited bid with the Group’s largest
investors
All Directors attended the AGM and were
available to answer shareholder questions
Group engagement
The CEO, CFO and Head of Investor
Relations attended a programme of
meetings and investor conferences, and
carried out investor roadshows at half and
full year, including providing insight on
progress against sustainability targets
WHAT DID THEY TELL US?
Investors spoke with us about the main
areas of interest including:
Macro factors affecting the
housebuilding sector
The planning process
Land portfolio and land market
Balance sheet and capital allocation
Fire remediation provision and progress
Other completed sites provision
Operational issues
KEY OUTCOMES
Regular Board engagement increased
confidence among investors by
demonstrating that the Board is committed
to open communication and addressing
shareholder concerns
Continued shareholder support as shown
by all resolutions being passed at the 2024
AGM with in excess of 80% votes in favour
We remained a constituent of the
FTSE4Good Index series and received
an A- rating in the CDP climate change
disclosure
FURTHER INFORMATION
See Approach to stakeholder
engagement on page 60.
INVESTORS
Stakeholder engagement continued
Institutional and individual investors, lenders and analysts.
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WHAT DO THEY EXPECT FROM US?
Our suppliers and subcontractors want
mutually beneficial working relationships that
share risk and reward alongside operational
efficiency. Suppliers expect us to deliver
projects safely and on time and to pay them
within agreed timescales.
HOW WE HAVE ENGAGED
Board engagement
Received regular updates on the Group’s
supply chain, including payment practices,
material costs and availability
Reviewed and approved the Modern
Slavery Act Statement
Group engagement
Maintained relationships with key suppliers
with particular focus on safety, costs and
sustainability
Periodic meetings held with subcontractors
at a divisional level to disseminate updates
and gather valuable feedback
Encouraged key suppliers to engage with
the Supply Chain Sustainability School
Continual dialogue with suppliers on
innovative new products aimed at
enhancing our offering
Engaged with suppliers on their
greenhouse gas emissions data to support
our whole life carbon analysis
WHAT DID THEY TELL US?
They want clear information about
timelines and project statuses so that
they can plan manufacturing schedules
and build programmes
Identifying future and upcoming
projects empowers them to forecast their
workload effectively and provide more
competitive pricing
Prompt payment is important for them
to maintain cash flow
KEY OUTCOMES
The adoption of innovative products
has significantly contributed to the
enhancement of our home energy
efficiency ratings and overall energy
performance across our diverse range
of house types
66% of Group suppliers actively engage
with the Supply Chain Sustainability School
Average time taken to pay suppliers was
38 days
Maintained our status as a Living Wage
employer and continued to engage with
subcontractors on their compliance
FURTHER INFORMATION
See Responsible practice on page 24.
Our Supply Chain Code of Conduct is on our
website at crestnicholson.com/supply-chain
SUPPLIERS
Stakeholder engagement continued
The suppliers who provide the materials for our homes and
the skilled subcontractors for our construction activities.
WHAT DO THEY EXPECT FROM US?
Our neighbours in the communities around
our developments expect engaged two-way
communication. They want us to uphold our
commitments to invest in essential infrastructure,
including transport, schools and health facilities.
It is also important that we protect the local
environment, reduce emissions and waste, and
support sustainable lifestyles.
HOW WE HAVE ENGAGED
Board engagement
Reviewed product development changes
to enhance home design and specifications
Received updates and monitored progress
against agreed SHE targets
Received updates on sustainability and
monitored progress against published
targets
Group engagement
Engaged with local communities, planning
authorities and environmental regulators,
allowing us to respond and incorporate
feedback into the development process
Partnered with Young Lives vs Cancer and
supported local charities and organisations
Joined the Homes for Nature commitment
and implemented actions to meet new
biodiversity net gain requirements
WHAT DID THEY TELL US?
Local communities want to engage with us
to enable them to input into development
infrastructure plans
It is important that our neighbours are
given clear information about the impact
of planned works
The charities we support want us to
understand their needs, and to know what
kind of support we can provide
It is important to create attractive outdoor
spaces that support both biodiversity and
community wellbeing, while mitigating our
environmental impact
KEY OUTCOMES
63% reduction in scope 1 and 2 greenhouse
gas emissions compared with the baseline
year of 2019
95% homes built during the year with an
Environmental Impact Rating of A or B
More than 160 employees participated in
our annual company fundraising day for
Young Lives v Cancer
FURTHER INFORMATION
See Protect the environment on pages 20-23
and Thriving communities on page 23.
COMMUNITIES AND ENVIRONMENT
The communities and environment local to our developments.
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WHAT DO THEY EXPECT FROM US?
The government expects proactive
engagement from us and solutions to meet key
housing targets, the Future Homes Standard
and industry initiatives that support biodiversity
and climate change matters.
HOW WE HAVE ENGAGED
Board engagement
Representation on the leadership council of
the Future Homes Hub (FHH)
Meetings with various industry bodies
including the Home Builders Federation (HBF)
Meetings with government ministers
Group engagement
Management met with the following bodies:
FHH, on the Future Homes Standard and
industry initiatives on biodiversity and
climate change
Ministry of Housing, Communities and Local
Government, on regulations for housing
Department for Energy Security and Net
Zero (DESNZ), regarding securing long-term
energy supply
HBF, involving high level policy and
regulatory changes
National House Builders Council and
Premier Guarantee, on building controls
Building Safety Regulator, including
workshops on compliance with updates to
the Building Safety Act
WHAT DID THEY TELL US?
The government is setting new mandatory
housing targets including 50% delivery of
affordable homes
Support and advice was received from
FHH in aligning business operations with
sustainability goals
Support from DESNZ on implementation
of home energy modelling including
understanding new software and trial
parameters
HBF outlined high level expectation of
government regulations including water
authorities, OFWAT, local authority highway
departments and electricity distribution
network operators
KEY OUTCOMES
Contributed to FHH research, influencing
the creation of realistic standards that the
industry can work towards, including whole
life carbon conventions, water efficiency
targets and biodiversity net gains
Preparedness for home energy modelling
and gave direct feedback on how
to improve the software for industry
implementation
Influenced input on practical advice to
ministers who are responsible for housing
and other government regulation
FURTHER INFORMATION
See Government and regulatory environment
on page 14.
GOVERNMENT AND OTHER BODIES
Stakeholder engagement continued
The government, regulatory and industry bodies that shape
the legislative environment in which we operate.
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Sustainability
Our sustainability strategy
Sustainability is one of our strategic foundations. It remains at
the core of our purpose to build great places for our customers,
communities and the environment. Our sustainability strategy is
built around three overarching priorities (see opposite).
MONITORING OUR MATERIAL ISSUES
Recognising the dynamic nature of environmental and
social challenges, we remain committed to regularly
engaging with our stakeholders to ensure we focus
on the most important sustainability-related issues.
These discussions help us identify and address areas
where we have an impact, or where we are impacted,
allowing us to stay responsive to emerging risks and
opportunities. Our stakeholder engagement process
supports our alignment with their priorities.
Read more on our stakeholder engagement
on pages 15-18
EVOLVING REPORTING REQUIREMENTS
We continue to monitor evolving reporting requirements
to stay ahead of future compliance. We are preparing for
the Taskforce on Nature-related Financial Disclosures
(TNFD) recommendations, aiming to voluntarily disclose
ahead of any mandatory requirements.
We are also closely tracking the UK’s Sustainability
Disclosure Requirements, including the adoption of
ISSB S1 and S2 standards, the UK Green Taxonomy
and transition plan disclosures. Our approach ensures
we remain well-prepared to meet forthcoming
sustainability-related obligations.
OUR GOVERNANCE APPROACH TO
SUSTAINABILITY
Strong governance is essential to driving sustainability
performance. Our commitment to responsible operations
is reinforced by Board oversight of our sustainability
strategy and objectives. The Sustainability Committee,
chaired by our Chief Executive Officer, guides the
evolution and integration of this strategy across the
Group, with delegated authority from the Board and
Executive Committee. In 2024, the Committee met four
times. Further details on our governance structure is
found on page 41.
We also link sustainability targets to remuneration (see
pages 78 and 81) and have tied our Revolving Credit
Facility to four sustainability targets. Performance
against these targets is on page 142.
We are committed to reducing our climate impact, conserving
resources, minimising waste and enhancing biodiversity.
We create high quality homes and invest in infrastructure
and placemaking to bring lasting benefits to our communities.
We uphold high ethical standards and prioritise the health,
safety and welfare of everyone connected to our value chain.
PROTECT THE ENVIRONMENT
MAKE A POSITIVE IMPACT ON OUR COMMUNITIES
OPERATE RESPONSIBLY
Climate action
Read more on pages 20-21
Thriving communities
Read more on page 23
Responsible practice
Read more on page 24
63%
% reduction in scope
1 and 2 emissions
against 2019 base year
495
affordable homes
delivered
66%
Group suppliers actively
engaged with the Supply
Chain Sustainability School
26%
% reduction in waste
against 2019 base year
92%
developments within 1km
of a public transport link
66
internal promotions
in the year
Highlights from 2024
Highlights from 2024
Highlights from 2024
Natural resources and waste
Read more on page 22
Social value
Read more on page 23
Health and safety
Read more on page 25
Biodiversity
Read more on page 23
High quality homes and service
Read more on pages 5 and 23
People and capability
Read more on pages 26-27
Our ESG Data Handbook provides further information on our
sustainability performance, including our response to the
Sustainability Accounting Standards Board Home Builder’s industry
standard. See crestnicholson.com/sustainability-reports.
“ At the heart of everything we do is a
commitment to sustainability. It’s not just part of
our strategy, it’s embedded into our values and
culture. By embracing responsible practices
across the Group, we’re able to make a
meaningful difference in the communities in
which we operate, while delivering long-term
value for our stakeholders.”
Mark Kershaw
Group Head of Sustainability
1
2
3
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Our journey to net zero at a glance
1. Revolving Credit Facility-linked target 2. Science-based target
You can find information regarding our climate-related risks and opportunities in our Task Force on Climate-related Financial Disclosures (TCFD) section on pages 40-48. Information on the RCF and the sustainability-linked targets is on page 142.
Protect the environment
1
Procure 100% renewable electricity by2025
Reduce waste intensity by 15% by 2025 from a 2019
base year
Reduce scope 3 GHG emissions intensity by 55% by
2030 from a 2019 base year
2
Reduce absolute scope 1 and 2 GHG emissions by
60% by 2030 from a 2019 base year
1,2
Increase proportion of homes with an Environmental
Impact Rating A and B (90% A rated by 2027)
1
Achieve net zero across our value chain
Reduce absolute scope 1 and 2 GHG emissions 90%
by 2045 from a 2019 base year
1,2
Reduce scope 3 GHG emissions intensity 97% by
2045 from a 2019 base year
2
Reach net-zero GHG emissions across the value chain
by 2045
2
SHORTTERM TARGETS MEDIUMTERM TARGETS LONGTERM TARGETS
As the urgency to address climate change intensifies, we are committed to reducing our
greenhouse gas (GHG) emissions in line with our science-based targets. Achieving net
zero across our value chain by 2045 is a key priority and significant challenge. We are
focused on mitigating and adapting to climate change, building resilience for the future.
2030 2045
Key actions from 2024
Reduced site diesel consumption through
reporting and early grid connections, reducing
generator reliance
Maintained use of hydrotreated vegetable oil
(HVO) accounting for 46% of site fuel
Expanded low emission vehicle fleet. Electric
and hybrid cars account for 82% of our Group
car fleet (2023: 64%)
Focus for 2025
Enhance energy and fuel efficiency awareness
through strengthened colleague engagement
Explore opportunities to adopt more lower
emission technologies, such as lower carbon
plant and machinery on site
Expand the use of renewable tariffs to meet
100% target by 2025 (2024: 85%)
Key actions from 2024
Collaborated with the Future Homes Hub,
suppliers and industry peers on GHG emission
disclosure and emissions reduction opportunities
Advanced preparation for the Future Homes
Standard, increasing the use of air source
heat pumps across developments
Prioritised waste reduction and material
use efficiency
Focus for 2025
Leverage insights from sites using air source
heat pumps to scale best practices and feed
learning into future developments
Expand supplier collaboration to drive
reductions in embodied carbon emissions
across the value chain
Scope 1 emissions encompass direct emissions from the use of fuel in the operation of plant and equipment at our sites, gas
consumption for heating and hot water and the fuel used by our vehicle fleet. Scope 2 emissions represent indirect emissions
arising from the procurement of electricity and heat.
Scope 3 emissions encompass emissions for which we are indirectly responsible throughout our value chain. These emissions are
primarily associated with our supply chain (upstream) and the use of our homes (downstream).
Scope 1 and 2 Scope 3
2025 20302025
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Performance against our science-based targets
REDUCING OUR SCOPE 1 AND 2 EMISSIONS REDUCING OUR SCOPE 3 EMISSIONS
In 2024, our total scope 1 and 2 GHG emissions
were 3,105 tonnes of CO
2
equivalent (tCO
2
e),
marking an 18% reduction from 2023 and 63%
decrease against our 2019 baseline. On an
intensity basis, emissions were 1.83 tCO
2
e per
100 sq. m, a 12% reduction compared with 2023
(2.09 tCO
2
e).
Reducing site diesel emissions has been a
key priority. During the year, we achieved a
42% reduction compared with 2023, driven
by regular communication and reporting on
fuel, plant and equipment use. This helped
minimise generator hire, prioritise early grid
connections and ensure generators in use
were appropriately sized. Along with using
efficient Tier 5 telehandlers, we have continued
to use hydrotreated vegetable oil as a direct
replacement for white diesel, accounting for
46% of our site diesel consumption.
We maintained 85% of our electricity use on
renewable tariffs, with a target of 100% by
the end of 2025. Until this year, renewable
tariffs were not available for unmetered
supplies on our sites. Through collaboration
with our utility management partner and
industry engagement, we secured access
to renewable unmetered supplies and
have already transitioned the majority to
renewable tariffs.
Additionally, we continue to promote low
emission vehicles, with 82% of our Group car
fleet now either electric or hybrid, up from
64% in 2023.
Scope 3 emissions account for 99% of our
total GHG emissions and predominantly
comprise emissions relating to our supply
chain (upstream) and the use of our homes
(downstream).
In 2024, our absolute scope 3 emissions
reduced by 15% compared with 2023. Scope3
intensity was 2.39 tCO
2
e/sq. m, representing
a 9% decrease from 2023 and a 7% reduction
against our 2019 baseline.
The use of our homes accounts for 62% of our
total emissions. The Future Homes Standard
(FHS) will deliver zero carbon ready homes
using electric heating systems like air source
heat pumps. Despite delays to the FHS
timeline, we remain focused on preparing for
its introduction.
In 2024, we introduced air source heat pumps
on several developments and will expand their
use in 2025, leveraging insights to scale best
practices and align with future regulations.
Our fabric-first approach enhances thermal
efficiency, reducing heat loss and improving
energy performance. Additionally, 95%
of our homes achieved an Environmental
Impact rating of A or B in 2024, meeting our
sustainability-linked RCF target for the year.
Materials and services used in construction
contribute around 36% of our total emissions. As
emissions from home use decrease, supply chain
emissions will become our largest carbon source.
Collaboration is critical to achieving net zero.
We engage with suppliers on emissions data,
including Environmental Product Declarations,
and strategies to cut emissions. We also
participate in the Future Homes Hub’s working
groups on embodied and whole-life carbon,
helping to drive industry-wide reductions and
supporting the net zero transition.
Scope 1 and 2 emissions performance (tCO
2
e)
Scope 3 emissions breakdown
Supply chain 36%
Use of sold product 63%
Other scope 3 1%
Protect the environment continued
1
Scope 3 emissions intensity performance
(tCO
2
e/sq. m)
2030 target (1.16 tCO
2
e/sq. m)
2030 target (3,383 tCO
2
e)
--- 2019 base year (8,458 tCO
2
e)
2024
2023
3,803
2022
4,449
3,105
2024
2023 2.64
2022
2.42
2.39
--- 2019 base year (2.57 tCO
2
e/sq. m)
Scope 1 and 2 GHG emissions breakdown
Scope 1 2,030 tCO
2
e 65%
Scope 2 1,075 tCO
2
e 35%
Scope 2 emissions use location-based emission factors.
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Natural resources and waste
Unsustainable resource
consumption and waste are
significant contributors to
climate change, biodiversity loss
and pollution. Reducing waste
aligns with our Operational
Efficiency strategic priority.
In 2024, we reduced total construction waste
by 39% compared with 2023, generating 12,132
tonnes (2023: 19,975 tonnes). Waste intensity
also decreased to 7.15 tonnes per 100 sq. m of
completed floor area, reflecting a 26% reduction
from our 2019 baseline and a 35% reduction
compared with last year.
Driving compliance with our Waste Management
Policy has been key to this progress. We produced
a waste management video to demonstrate best
practice on site and provided regular guidance to
divisions to support further waste reduction.
We recognise that we still generate too much
waste and we will continue to focus on efficiency
improvements. We maintained strong waste
segregation practices, diverting 98% of waste
from landfill (2023: 98%), exceeding our 95%
target. Additionally, our ongoing collaboration
with Community Wood Recycling resulted in 11
jobs, 16 training places and facilitated timber re-
use. Our pallet return scheme saw 23,763 pallets
collected for repair, re-use or recycling.
EVOLVING OUR WASTE METRICS AND
TARGETS
This year, we continued to report waste intensity
based on floor area. However, for 2025, we
will transition to using equivalent build units
for reporting as this approach offers a more
representative view of the production taking
place on our sites. This change will help us
refine our targets and further enhance our waste
management practices.
WATER RESILIENCE
The UK faces increasing pressure on its water
supply due to climate change, population growth
and ageing water infrastructure. To help address
these challenges, we focus on both reducing
water demand and improving water management
across our developments.
Our homes are designed to use less than 105
litres per person per day (lpppd), 16% lower
than the regulatory requirement of 125 lpppd.
Our homes incorporate water-saving features
such as dual-flush toilets, low-flow taps and
showers and water meters, helping to reduce
household water consumption.
At a development scale, we integrate
sustainable drainage systems (SuDS) to build
resilience against water scarcity and mitigate
flood risk. SuDS, which reduce surface water
runoff by using natural features like swales
and attenuation ponds, not only improve water
quality but also enhance biodiversity and create
recreational spaces.
NUTRIENT NEUTRALITY
In response to elevated phosphate and
nitrate levels in watercourses, several local
authorities mandate nutrient neutrality for
new developments, following guidance from
Natural England. While this approach seeks to
improve water quality, it has caused planning
delays without fully addressing the root cause
of river pollution. We continue to work closely
with government bodies, industry partners
and stakeholders to find effective solutions for
nutrient neutrality.
Our waste management best practice video
is a mandatory training requirement for
commercial and site-based colleagues.
SuDS at Sevington
Lakes, Ashford creates
an attractive vista while
mitigating flood risk
across the development.
Total construction waste (tonnes)
Waste intensity (tonnes/100 sq. m)
Protect the environment continued
1
2024
2023 19,975
2022 21,356
12,132
2024
2023 10.98
2022 8.72
7.15
---- 2019 base year (9.64 tonnes/100 sq. m)
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Enhancing biodiversity
Biodiversity loss is a significant
global challenge, and we
can play a role in supporting
ecosystems at both a local
and national level.
In February 2024, biodiversity net gain (BNG)
became a mandatory requirement for all new
planning applications, requiring at least a 10%
increase in biodiversity compared with a pre-
development baseline. This regulation forms part
of the Environment Act 2021, reinforcing efforts to
preserve local ecosystems and support broader
biodiversity targets.
Our approach to biodiversity net gain varies
across our developments, and to ensure
effective delivery, we incorporate it early
in the land acquisition and planning stages.
By engaging ecologists and landscape architects
from the outset, we aim to create habitat
solutions that are both environmentally beneficial
and cost effective.
As biodiversity net gain is still a relatively new
requirement, we recognise that our approach
will continue to evolve as we learn from each
project. We are committed to refining our
strategy over time, ensuring we implement best
practices in biodiversity and consistently meet
both regulatory requirements and the ecological
needs of each site.
HOMES FOR NATURE COMMITMENT
Nature is highly intricate and cannot be captured
through metrics alone. We go beyond the
requirements measured for biodiversity net gain
set out in the Environment Act 2021. This includes
protecting and, when necessary, relocating
species on our developments, installing bird and
bat bricks and creating hedgehog highways to
support local wildlife.
In 2024, we signed up to the Homes for Nature
commitment, developed in collaboration with the
Future Homes Hub and industry peers. As part
of this initiative, we will install a bird-nesting brick
or box for every new house we build, as well
as creating hedgehog highways as standard in
every new development taken through planning
from September 2024.
Protect the environment continued
1
We are committed to delivering
attractive, high quality homes
and leaving a lasting positive
legacy for our communities and
the local environment.
CREATING THRIVING COMMUNITIES AND
SOCIAL VALUE
Through thoughtful placemaking, collaborative
planning and stakeholder engagement, we
are committed to providing high quality homes
with convenient access to local amenities. We
prioritise enhancing connections between
our customers and nature by incorporating
accessible green spaces wherever possible.
We aim to create thriving communities that
bring lasting benefits. Our approach integrates
social value through local infrastructure
enhancements, such as improved public transport
links, community centres, educational facilities
and recreational and play areas. We also drive
socio-economic growth by creating jobs for local
subcontractors, apprentices, trainees and supply
chain partners.
CHARITABLE GIVING AND SUPPORTING
THE LOCAL COMMUNITY
In 2023, we launched a charity partnership with
Young Lives vs Cancer, supporting their mission
to ensure children and young people with cancer
get the right support at the right time. We also
actively support local charities and organisations
through donations, sponsorships and our payroll
giving scheme.
DELIVERING HIGH QUALITY HOMES AND
EXCELLENT CUSTOMER EXPERIENCE
Building high quality homes and delivering an
outstanding customer experience are central
to our strategy. We aim to provide our customers
with the best possible experience throughout
their home buying journey and beyond.
In 2024, we renewed our focus on quality
and customer service, consistently achieving
a customer satisfaction rating above the 90%
threshold required for 5 star status from the
Home Builders Federation. We enhance the
energy efficiency of our homes by incorporating
sustainable technologies and efficient building
fabric, helping reduce emissions and lower
energy costs for homeowners. More details
can be found on page 5.
Make a positive impact on our communities
2
Thriving communities
More than 160 colleagues
participated in the annual
charity challenge raising funds
for Young Lives vs Cancer.
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Responsible practice
We are dedicated to running
our business responsibly,
fostering a safe, inclusive
workplace and working
closely with our supply chain
to drive positive outcomes
for our stakeholders.
SUSTAINABLE SUPPLY CHAIN AND
RESPONSIBLE PROCUREMENT
Collaboration with our supply chain partners
is crucial to the successful delivery of our
strategy and sustainability objectives. Our
Sustainable Procurement Policy and Supply Chain
Code of Conduct (Supplier Code) outline clear
environmental, ethical and social obligations for our
partners, ensuring safe and fair working conditions.
We remain a Gold status partner of the Supply
Chain Sustainability School (the School),
an industry initiative that provides valuable
sustainability-related learning resources to our
supply chain and colleagues. This partnership
enhances the skills and knowledge of our
suppliers through targeted learning modules on
key sustainability topics such as climate change,
waste management and modern slavery.
One of our sustainability-linked Revolving Credit
Facility targets focuses on supplier engagement
with the School. We aim for 90% of suppliers with
Group Trading Agreements to achieve bronze,
silver or gold membership of the School by 2026.
In 2024, 66% (2023: 56%) of these suppliers had
reached at least bronze membership, of which
48% achieved gold status.
SUSTAINABLE TIMBER
Our Sustainable Timber Policy commits us
to sourcing certified timber from responsibly
managed forests, including Forest Stewardship
Council (FSC) and Programme for the
Endorsement of Forest Certification (PEFC)
certified timber. This promotes sustainable forest
management and helps mitigate the risk of illegal
deforestation. In our most recent audit, 99%
of our timber procured from suppliers was FSC
or PEFC certified.
HUMAN RIGHTS AND ANTISLAVERY
We are committed to conducting our business
with integrity, helping to ensure that human
rights are respected and protected throughout
our operations. This extends to our colleagues,
supply chain, customers and the communities
we serve. Our Human Rights Policy supports the
principles set out in internationally recognised
standards, including the UN Guiding Principles on
Business and Human Rights and the UN Universal
Declaration of Human Rights.
We expect our supply chain partners to act
responsibly, with respect for human rights.
Our Supplier Code clearly sets out expectations
on environmental and social issues, and all
partners are contractually required to comply with
these standards.
To raise awareness of modern slavery, we
require all new employees to complete anti-
slavery training during induction, with existing
employees undertaking an annual update. We
provide updates through our intranet and display
posters across our sites in multiple languages,
to help those working on our sites identify signs
of modern slavery. We maintain a zero-tolerance
approach to all forms of modern slavery, including
forced labour and child labour.
Our Speaking Up (whistleblowing) helpline and
website allow our colleagues, subcontractors,
suppliers and the local community to report
concerns. In 2024, no substantiated grievances
related to human rights were reported, and no
instances of modern slavery were identified.
REAL LIVING WAGE
We maintained our accreditation as a Living Wage
Employer in 2024. The real Living Wage exceeds
both the government’s minimum wage and the
National Living Wage, being the only wage rate
in the UK calculated based on the actual cost
of living.
We ensure that all direct employees are paid
at least the real Living Wage, with annual
reviews to ensure compliance. Our Supplier
Code requires that subcontractors working
on our sites are also paid the real Living Wage,
and we actively communicate this across our
sites. We also provide information on how to
report any concerns of non-compliance through
our Speaking Up channels.
Group suppliers at bronze, silver
or gold status with the Supply Chain
Sustainability School
66%
of which
48%
received gold
Operate our business responsibly
3
Read more in our Speaking Up policy and our Supply Chain
Code of Conduct at: crestnicholson.com/supply-chain
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Operate our business responsibly continued
3
Safety, health and environment
The safety and welfare of
everyone who comes into
contact with our operations
is our number one priority.
There is nothing more important than the health,
safety and wellbeing of our people, subcontractor
workforce, customers and the public. As a Home
Builders Federation Health and Safety Charter
Signatory organisation, we are committed to
continuous improvement and to the charter’s
core aims of driving improved performance and
growing a positive health and safety culture. We
have continued to make improvements in the way
that we manage workplace health and safety risks
throughout 2024.
There is a Group Safety, Health and Environment
(SHE) Committee whose role is to ensure oversight
and stewardship of the Group’s SHE management
system, and performance and compliance with
applicable laws and standards. Responsibilities
of the Committee include setting policy, developing
strategic objectives, ensuring resources
are available to manage risk and ensuring
operational processes are being controlled
effectively. SHE Committee actions and progress
are reported to the Board at every meeting.
Everything we do is built on a foundation of
integrity, quality and care. Our SHE mission
is to promote a culture and environment that
empowers everyone to work collaboratively and
responsibly, promoting operational excellence
and wellbeing, centred around keeping people
and places healthy and safe.
This includes the occupiers of legacy buildings
which we are now revisiting to ensure they
comply with the latest fire related standards.
Additional measures and processes have been
put in place to ensure this work is carried out
to the highest health and safety standards and
monitored by both senior management and our
SHE team.
2024 HIGHLIGHTS
The Group has had no health and safety
prosecutions, prohibition or improvement notices,
work related fatalities or environmental breaches
resulting in prosecution during the year.
A total of 519 site inspections were completed,
by a combination of divisional and Group senior
management, build and site managers, the in-
house SHE team and our independent external
consultants. SHE compliance inspections on
all active sites were carried out measuring our
compliance with industry best practice guidance
and legal requirements. Compliance has steadily
improved over the past four years and we have
raised our Group target for compliance from 90%
to 95% for 2025.
A key focus area was accidental buried cable
strikes, which are both dangerous and costly.
We implemented new working practices and
engaged our supply chain, and as a result we
were able to reduce cable strikes by nearly 50%
over the second half of the year.
Our Annual Injury Incident Rate (AIIR) increased
compared with 2023. AIIR is the ratio of accidents
to the number of people exposed to the risk.
In 2024, the number of people working on our
sites and other premises fell while the number of
reportable incidents remained the same as the
previous year, leading to a rise in the AIIR.
2025 FOCUS AREAS
We have set targets for reducing accidents
in 2025. Our priorities include focusing on
the causes of accidents, and increasing
our expectations of tidiness and material
management on our sites.
We want to make sure that customers moving
into their new homes have the best possible
experience while construction of additional
homes continues on the development. We are
introducing new public safety processes and
monitoring to ensure occupied areas of new
and established developments are as safe as
possible and being managed to provide an
excellent experience for our customers.
We will continue to work with stakeholders
on our remedial schemes to improve how they
are managed.
AIIR
396
2023: 305
SHE inspection compliance
92.3%
2023: 89.9%
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Our people
We want our people to feel
valued, heard and included.
Our people are at the heart
of everything we do, and
their commitment and hard
work are critical to our
long-term success.
There has been a level of uncertainty for our
people throughout this financial year, with some
major changes within the business as well as
external factors having an impact. Our people
have shown true resilience, and we have sought
to champion them with a continued aim of being
an employer of choice.
TRAINING AND DEVELOPMENT
We have invested time and resources into how
we train and develop our employees and have
focused on compliance and mandatory training.
To enhance the skillset of our people on a more
personal level, we have facilitated a number of
learning avenues.
Personal skills programme
We partner with an external provider to deliver
a series of short management training modules.
We have different modules which come under
three key themes, which are Myself, My Team
and My Relationships.
Recognising and preventing harassment
and bullying training
We have developed and provided a new
training programme to reinforce our stance on
harassment, especially sexual harassment,
in line with new legislation which came into force
in October 2024.
We have invested time and resources in its
development to ensure it is as impactful as
possible. Working with an external trainer and two
actors, we launched the training in person for all
employees with line management responsibilities,
with live online training for all other employees.
The training encompasses what does it mean to
be respectful at work, what is harassment, what
our standards are in terms of our code of conduct,
what is banter, what constitutes being ‘at work’,
implicit bias and speaking up.
Positive feedback has been received on this and
we have heard our employees saying how they
will change their mindset, especially given the
industry we are in and that a different approach
is required.
Hours of in-person and
online training delivered
6,130
“ If only courses like this
were available many
years ago, perhaps
all industries, or even
everyday life, would be in
a better place.”
Cliff Thomas
Senior Site Manager – Recognising and
preventing harassment and bullying training
Operate our business responsibly continued
3
“I joined Crest Nicholson
in January 2022 as a
Sales and Marketing
Director.
After a year I expanded my role to include
overseeing customer service and later
supported the commercial department,
which broadened my knowledge of the
business. In my second year, I attended a
Senior Leadership course which included
1:1 coaching with an external, professional
coach. This was to help us, as leaders,
drive business performance and face into
challenges with authenticity, agility and
bravery. This gave me the confidence to
apply for the Managing Director role for the
South West division, which I was delighted
to be offered.”
Charlie Joseph
Managing Director, South West
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Sales management team – coaching skills
Sales is a key focus for our business and we have
invested in broadening the skillset of our sales
management team by giving them an in-depth
dive into what coaching is, so that they can better
support our sales executives in their roles.
We have received positive feedback on
the coaching training delivered to our sales
management team, which also includes a follow
up with divisional teams to truly embed the
coaching mindset.
Trainees
We continue to invest in our trainees, noting the
importance of having a future talent pipeline
within the business. We achieved the Gold
Award with the government-recognised 5% Club
scheme for our 2024 financial year.
SIte employee development
We continue to enhance the technical knowledge
and expertise of our site management population,
by partnering with the Chartered Institute
of Building and ensuring our site managers,
assistant site managers and trainee assistant
site managers have the option to complete an
enhanced qualification to broaden their horizons
in site management.
Operate our business responsibly continued
3
EMPLOYEE TURNOVER
Our voluntary employee turnover has slightly
increased to 22% in 2024. Our focus on
recruitment process improvements, onboarding
and management communication has been
in the service of improving the turnover of our
people and to ensure we have the right people
in place to implement our strategy and achieve
our goals. We will continue this focus in 2025
specifically around upskilling leaders and
managers in our business.
ONBOARDING
We have invested time in how we can improve
our onboarding experience for new starters.
We focused on the responsibility of hiring
managers to be accountable for a new starter
as part of their preboarding and onboarding
experience, looking to show that we are a
business that cares about and values our people.
We have created a series of new documents
to aid our hiring managers and others involved
in the process and introduced a buddy system
where each new starter is assigned someone
from another division to widen their support
network and build relationships further afield for
their future career.
We are also utilising our HR system to bolster how
we receive feedback from new starters and look to
continually improve our onboarding experience.
HEALTH AND WELLBEING
It is important for our people to feel valued,
happy and healthy in their workplace. We
promote an agile working environment, valuing
the importance of work-life balance.
We continue to invest in having Mental Health
First Aiders in the business, and understand
the impact of the training these people have
received, should a situation arise where these
skills are required.
EQUALITY, DIVERSITY AND INCLUSION
It is essential to have a diverse workforce who
bring different experiences and perspectives to
our workplace, who feel valued, included and
empowered to succeed.
Our policies are clear that we do not
discriminate, either in hiring, development or
career progression, based on any protected
characteristic including gender, race, age, sexual
orientation or disability.
We held a Diversity and Inclusion Forum during
the year, to further discuss how we could embed
an equality, diversity and inclusion strategy across
the business. Given the uncertainty the business
and industry faced this year, the implementation
of the strategy will be a focus for 2025.
We continue to be a Silver Award holder with
the Employer Recognition Scheme, showing our
ongoing support of the armed forces, especially
being an employer that has a reservist policy
in place.
We are currently developing new guidance for
both line managers and employees on managing
neurodivergence in the workplace. We aim to
ensure all employees are supported in working to
the best of their ability, and gaining the advantages
that a neurodiverse workforce can bring.
Voluntary employee
turnover
22%
2023: 19%
Employees promoted
through the year
66
2023: 61
Male
63%
Female
37%
Ethnicity split
White British or other white 88%
Mixed/multiple ethnic groups 1.5%
Asian/Asian British 4%
Black/African/Caribbean/Black British 3%
Other including Arab 0.5%
Not specified/prefer not to say 3%
Ethnicity categories as specified in Listing Rule 9, to align with
data on diversity on the Board and in executive management
shown on page 92.
Gender balance
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Key performance indicators
Measuring our performance
FINANCIAL KPIS
We use key performance
indicators to monitor our
progress against our strategy.
These are how we measure
the performance and health
of our business.
Return on capital
employed (ROCE)
1
4.1%
2024
7.3%
2
2023
22.4%2022
Definition
Adjusted operating profit before joint ventures
divided by average capital employed.
Why we measure
Illustrates how effective the Group’s capital
allocation is in delivering returns.
Land creditors as a %
of net assets
1
18.1%2024
24.0%2023
22.5%2022
Definition
Land creditors divided by net assets.
Why we measure
Ensures that the Group is maintaining its
financial position when entering into future
landcommitments.
Earnings before interest
and tax (EBIT) margin
1
5.1%2024
7.7%
2
2023
15.4%2022
Definition
EBIT margin (operating profit margin) reflects the
adjusted profit before interest, joint ventures and
tax achieved by the Group, divided by revenue.
Why we measure
Assesses the financial efficiency of our Group
operations before any one-off costs.
Net (debt)/cash
1
£(8.5)m2024
£64.9m2023
£276.5m2022
Definition
Cash and cash-equivalents plus non-current and
current interest-bearing loans and borrowings.
Why we measure
Illustrates the Group’s overall liquidity position
and general financial resilience.
Unit completions
1,8732024
2,0202023
2,7342 022
Definition
Sales of homes recognised in the year including
100% of those held in joint ventures and on an
equivalent unit basis.
Why we measure
Reflects overall business activity and output
and enables us to forecast future capacity
requirements.
Land portfolio forecast
gross margin
23.1%2024
23.2%2023
25.0%2022
Definition
The forecast gross margin after sales and
marketing costs of land we hold in our short-term
land portfolio.
Why we measure
Indicates the earnings potential of current
and future land development and the sale
of associated homes.
Link to remuneration
To align the focus of the Board and Executive
Committee with the interests of stakeholders,
some KPIs are reflected in our senior
management incentive schemes.
Land Portfolio
Strategic Land and Partnerships
Placemaking and Quality
Operational Efficiency
5 Star Customer Service
Links to Strategic Priorities
KPI used in the annual bonus scheme
KPI used in the Long-Term Incentive Plan
1
2
Further information on remuneration can be
found on pages 74-91
2 2
1 ROCE, EBIT margin, net debt/cash and land creditors as a percentage of net assets are alternative performance measures. See pages 158-159 for further details.
2 Represented as per note 29 of the financial statements.
4.1%
18.1%
5.1%
£(8.5)m
1,873
23.1%
1
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Key performance indicators continued
NONFINANCIAL KPIS
Greenhouse gas
emissions intensity
1.832024
2.092023
1.822022
Definition
The greenhouse gas emissions intensity reflects
our scope 1 and 2 emissions (tCO
2
e) per 100 sq. m
of completed floor area. It includes business
travel via company cars, fuel and energy used
on sites and in offices.
Why we measure
Tracks our progress on reducing our impact on
the environment. There is also a financial benefit
from increased operational efficiency
and reduced cost of fuel used.
Waste intensity
7.152024
10.982023
8.722022
Definition
Waste intensity reflects tonnes of construction
waste per 100 sq. m of completed floor area.
Why we measure
Tracks our progress on reducing our impact on
the environment. There is also a financial benefit
from the reduced cost of materials purchased
and waste generated in the construction process.
Annual Injury
Incidence Rate (AIIR)
3962024
3042023
4682022
Definition
AIIR represents the number of accidents in the
year normalised per 100,000 people working
on-site.
Why we measure
The safety, health and welfare of everyone who is
part of our operations is our number one priority.
Voluntary employee
turnover
22%2024
19%2023
27%2022
Definition
The percentage of leavers during the year
by reason of resignation or retirement as a
proportion of total employees at the end of
theyear.
Why we measure
Low employee turnover supports greater depth
of experience, continuity and development of
skills within ourteams.
Affordable and bulk housing
completions
44%2024
40%2023
35%2022
Definition
Proportion of unit sales of homes recognised in
the year to affordable housing, including open
market bulk sales.
Why we measure
Partnerships form part of our strategic priorities.
The number published for 2023 in last year’s report has been
updated to include open market bulk sales.
2
Customer satisfaction
4*2024
4*202 3
5*2022
Definition
The annual HBF’s customer satisfaction rating
based on the NHBC survey which new home
buyers receive. Survey results are published
in March each year.
Why we measure
Providing 5 star customer service is one of
our strategic priorities. In 2024, we have
consistently achieved a customer satisfaction
rating above the 90% required to achieve 5 star
status in March 2025.
1
4*
1.83
396
7.15
44%
22%
11
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