Highlights

  • Jefferies has issued a buy rating on Crest Nicholson with a target price of GBP 251 per share.
  • Investec Bank (UK) Plc has also issued a buy rating on the company with a target price of GBP 190 per share.
  • The ratings coincide with Crest Nicholson’s trading update for FY25, which outlines progress across operational, land and sales activities.

Crest Nicholson Holdings plc (LSE:CRST) has received favourable analyst coverage as both Jefferies and Investec Bank (UK) Plc have issued buy ratings on the company. Jefferies set a target price of GBP 251 per share, while Investec placed its target at GBP 190 per share. The dual analyst support might have come on the back of the recent trading update for the year ending 31 October 2025, highlighting delivery against strategic priorities and operational improvements across the Group.

FY25 Trading Update Shows Progress in Sales and Operations

The Group reported FY25 volumes of 1,691 units, positioned at the lower end of its guidance range of 1,700 to 1,900 units. Around 35% of these were affordable and PRS units, reflecting the planned shift away from PRS during the year. Open market sales increased by 5% to 1,095 units, supported by enhancements to the company’s sales approach.

The FY25 open market sales rate reached 0.51 compared with 0.48 in FY24, with the final 13 weeks of the financial year delivering a rate of 0.45. The Group expects adjusted profit before tax (APBT) to be at the lower end of, or marginally below, the guidance range of GBP 28 million to GBP 38 million. Crest Nicholson also anticipates an opening reserves adjustment to inventory of approximately GBP 8 million, linked to profit levels recorded between FY22 and FY24 for one development in the Eastern division. The impact on APBT in each of those years is not expected to be material.

Year-end net debt is forecast to be at the better end of the guidance range of GBP 40 million to GBP 90 million. The company has secured around GBP 50 million of land receipts for FY26, supporting its land strategy and financial planning.

Strategic Execution and Land Activity Strengthen the Outlook

Across FY25, Crest Nicholson progressed its land strategy, completing the disposal of five parcels from larger sites. As part of Project Elevate, the Group has initiated a collective consultation regarding the proposed closure of one divisional office and potential reductions across overhead functions, affecting around 50 roles.

The Group reported continued improvements in build quality, customer satisfaction, and sales performance, complemented by external recognition from NHBC and Premier for five developments. Planning activity also advanced during the year, with 66% of the strategic land bank now allocated or at draft allocation stage, up from 50% in FY24.

Crest Nicholson has made progress on its new house type range, with the design phase expected to conclude by December 2025. Customer experience initiatives, including enhanced training, upgraded technology and a streamlined customer journey, have contributed to better engagement across the mid-premium market. The company also launched the Arteva upgrade range, giving buyers expanded personalisation choices and generating early financial benefits.