Crest Nicholson
{{Short description|Housebuilder in Chertsey, U.K.}}
{{Infobox company
| name = Crest Nicholson
| logo=Crest Nicholson logo.png
| logo_size =
| type = Public
| traded_as = {{ubl|{{lse|CRST}}|FTSE 250 component}}
| foundation = 1963
| location = Weybridge, Surrey, UK
| key_people = Iain Ferguson (Chairman)
Martyn Clark (CEO)
| industry = Housebuilding
| products =
| revenue = {{decrease}} £618.2 million (2024){{cite web|url=https://www.crestnicholson.com/uploads/pdf/media/reports/financial/2024/183-reports-media-item.pdf|title=Annual Results 2024|publisher=Crest Nicholson|access-date=9 February 2025}}
| operating_income = {{decrease}} £31.3 million (2024)
| net_income = {{decrease}} £(103.5) million (2024)
| num_employees =
| parent =
| subsid =
| homepage = [http://www.crestnicholson.com/ www.crestnicholson.com]
| slogan =
| footnotes =
}}
Crest Nicholson is a British housebuilding company based in Weybridge, Surrey. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
History
File:London Colney, Napsbury Park - geograph.org.uk - 475660.jpg, a Crest Nicholson redevelopment in Hertfordshire]]
=1963-2000=
The company was founded by Bryan Skinner in 1963 as Crest Homes and floated on the London Stock Exchange in 1968. One of the characteristics that differentiated Crest from most other housebuilders of the time was “not to hold large stocks of land”.Company prospectus September 1968
During 1969, Crest made its first diversification via the acquisition of En-Tout-Cas, a leading firm in tennis court construction. Two years later, it purchased Tony Pidgley’s earth moving business; Pidgley teamed up with Jim Farrer, a board member and originally the estate agent who had provided Skinner with his first land. These two ran Crest’s housing until 1975, at which point they left to form Berkeley Homes.{{cite book |last = Wellings |first = Fred |title = Dictionary of British Housebuilders |date = 2006 |publisher = Troubador |isbn = 978-0-9552965-0-5}}
In 1972, a new holding company, Crest Securities, was formed to facilitate further diversification.Company prospectus March 1972 At the end of that year, Crest bought Camper & Nicholsons, a leading yacht manufacturer, leading to the firm changing its name to Crest Nicholson. Additional acquisitions followed, such as the Lamson Engineering (1975), the spectacle makers Crofton (1979) and Greenwood Electronics (1983). Crest also bought the west-country construction firm of CH Pearce in 1985.{{cite web |url=http://www.building.co.uk/isg-snaps-up-pearce-and-plans-asian-shopping-spree/3100179.article |title=ISG snaps up Pearce and plans Asian shopping spree |publisher=Building |date=11 March 2008 |access-date=26 March 2015}}
During 1983, Bryan Skinner retired due to ill health; following management changes, many of the moves towards diversification were reversed. Non-housing businesses were sold in the late 1980s while in the housing division Crest started to pursue the acquisition of a long land bank.
Crest Nicholson encountered considerable challenges in 1991; in addition to incurring a £34 million loss for the six months to April of that year, its head office was permanently closed and 150 jobs were lost as the company was restructured while chief executive Roger Lewis stepped down from his position.{{cite web |url = https://www.constructionnews.co.uk/sections/news/05jul91-uk-crest-nicholson-reports-loss-of-34m-for-six-months-to-april-1991-04-07-1991/ |title = 05Jul91 UK: CREST NICHOLSON REPORTS LOSS OF £34M FOR SIX MONTHS TO APRIL 1991 |website = constructionnews.co.uk |date = 4 July 1991}} On 1 January 1991, John St Lawrence was appointed as chairman of Crest Nicholson; job losses increased to 300 around this time.{{cite web |url = https://www.constructionnews.co.uk/sections/news/20feb92-uk-appointment-at-crest-nicholson-20-02-1992/ |title = 20Feb92 UK: APPOINTMENT AT CREST NICHOLSON |website = constructionnews.co.uk |date = 20 February 1992 }}{{cite web |url = https://www.constructionnews.co.uk/sections/news/20feb92-uk-internal-reorganisation-at-crest-nicholson-leads-to-300-job-losses-20-02-1992/ |title = 20Feb92 UK: INTERNAL REORGANISATION AT CREST NICHOLSON LEADS TO 300 JOB LOSSES |website = constructionnews.co.uk |date = 20 February 1992}} Six months later, the company had recorded a pre-tax loss of £1.7 million for the first half of the year; it has also sold its loss-making sports surface business.{{cite web |url = https://www.constructionnews.co.uk/sections/news/09jul92-uk-crest-nicholson-unveils-sharply-reduced-pretax-losses-in-six-months-to-april-1992-of-1-7m-09-07-1992/ |title = 09Jul92 UK: CREST NICHOLSON UNVEILS SHARPLY REDUCED PRETAX LOSSES IN SIX MONTHS TO APRIL 1992 OF £1.7M |website = constructionnews.co.uk |date = 9 July 1992 }}
During early 1993, the firm reportedly became profitable once again.{{cite web |url = https://www.constructionnews.co.uk/sections/news/18feb93-uk-back-to-black-for-crest-nicholson-18-02-1993/ |title = 18Feb93 UK: BACK TO BLACK FOR CREST NICHOLSON |website = constructionnews.co.uk |date = 18 February 1993}} Profits would increase during the following years as the housing market recovered from the early 1990s recession.{{cite web |url = https://www.constructionnews.co.uk/sections/news/increased-profits-at-crest-nicholson-bryant-point-to-recovery-outside-south-east-house-builders-look-buoyant-in-regions-13-02-1997/ |title = Increased profits at Crest Nicholson, Bryant point to recovery outside South-East House builders look buoyant in regions |website = constructionnews.co.uk |date = 13 February 1997 |first = Bill |last = Fishlock}} In 1999, Crest Nicholson set up a dedicated construction management arm that focused on urban development opportunities.{{cite web |url = https://www.constructionnews.co.uk/sections/news/house-builder-forms-construction-management-arm-after-government-push-for-brownfield-development-crest-gears-up-for-city-sites-04-02-1999/ |title = House builder forms construction management arm after government push for brownfield development Crest gears up for city sites |website = constructionnews.co.uk |date = 4 February 1999 |first = Aaron |last = Morby}}
=2000-2019=
During June 2000, Pearce Group, the construction division of Crest Nicholson, reported an operating loss of £100,000 over a six month period, which was attributed to its retail activities;{{cite web |url = https://www.constructionnews.co.uk/sections/news/retail-leaves-pearce-seeing-red-29-06-2000/ |title = Retail leaves Pearce seeing red |website = constructionnews.co.uk |date = 29 June 2000}} despite this, the division benefitted from a housing boom at that time.{{cite web |url = https://www.constructionnews.co.uk/sections/news/pearce-riding-on-the-crest-of-a-house-building-wave-03-02-2000/ |title = Pearce riding on the crest of a house-building wave |website = constructionnews.co.uk |date = 3 February 2000 }} In the following year, chief executive John Callcutt publicly voiced his opposition to both mergers and quotas in the housebuilding sector.{{cite web |url = https://www.constructionnews.co.uk/sections/news/house-builder-shuts-the-door-on-mergers-01-02-2001/ |title = House builder shuts the door on mergers |website = constructionnews.co.uk |date = 1 February 2001}}{{cite web |url = https://www.constructionnews.co.uk/sections/news/crest-says-housing-quota-is-unrealistic-05-07-2001/ |title = Crest says housing quota is unrealistic |website = constructionnews.co.uk |date = 5 July 2001}} During early 2002, Crest Nicholson began seeking a buyer for Pearce Group,{{cite web |url = https://www.constructionnews.co.uk/sections/news/crest-seeks-a-buyer-for-contracting-arm-07-02-2002/ |title = Crest seeks a buyer for contracting arm |website = constructionnews.co.uk |date = 7 February 2002}} although it went on to reject an offer submitted by Montpellier in June of that year.{{cite web |url = https://www.constructionnews.co.uk/sections/news/crest-turns-down-montpellier-offer-13-06-2002/ |title = Crest turns down Montpellier offer |website = constructionnews.co.uk |date = 13 June 2002 }} In the latter half of 2002, Pearce Group was reoriented towards the public sector and its high-tech unit was permanently shuttered amid losses.{{cite web |url = https://www.constructionnews.co.uk/sections/news/pearce-in-red-as-its-hi-tech-arm-closes-04-07-2002/ |title = Pearce in red as its hi-tech arm closes |website = constructionnews.co.uk |date = 4 July 2002}}{{cite web |url = https://www.constructionnews.co.uk/sections/news/pearce-looks-to-public-sector-to-restore-profit-12-12-2002/ |title = Pearce looks to public sector to restore profit |website = constructionnews.co.uk |date = 12 December 2002 }} Pearce Group was eventually sold via a management buyout.{{cite web |url = https://www.constructionnews.co.uk/sections/news/pearce-in-black-for-first-buyout-accounts-19-02-2004/ |title = Pearce in black for first buyout accounts |website = constructionnews.co.uk |date = 19 February 2004}}
During the mid 2000s, Crest Nicholson placed an increased emphasis on the affordable housing sector of the market,{{cite web |url = https://www.constructionnews.co.uk/sections/news/crest-and-berkeley-put-faith-into-regeneration-01-07-2004/ |title = Crest and Berkeley put faith into regeneration |website = constructionnews.co.uk |date = 1 July 2004}} and continued to pursue organic growth of the business.{{cite web |url = https://www.constructionnews.co.uk/sections/news/crest-to-carry-on-growing-organically-says-calcutt-05-02-2004/ |title = Crest to carry on growing organically, says Calcutt |website = constructionnews.co.uk |date = 5 February 2004 }} In March 2005, Heron Corporation submitted a £480 million bid to takeover Crest Nicholson which was rejected by the firm's management;{{cite web |url = https://www.independent.co.uk/news/business/news/crest-nicholson-spurns-acirc-pound-480m-offer-from-ronson-s-heron-528827.html |title = Crest Nicholson spurns £480m offer from Ronson's Heron |work = The Independent |first = Michael |last = Jivkov |date = 17 March 2005}}{{cite web |url = https://www.propertyweek.com/news/heron-faces-takeover-battle-for-crest-nicholson |title = Heron faces takeover battle for Crest Nicholson |website = propertyweek.com |date = 16 March 2005}} two months later, Heron walked away from talks.{{cite web |url = https://www.house-builder.co.uk/news/crest-fights-off-heron-bid-2005-03-17/ |title = Crest fights off Heron bid |website = house-builder.co.uk |date = 17 March 2005}}{{cite web |url = https://www.house-builder.co.uk/news/crest-nicholson-gives-heron-final-chance-to-make-formal-takeover-bid-2005-05-01/ |title = Crest Nicholson gives Heron final chance to make formal takeover bid |website = house-builder.co.uk |date = 1 May 2005}}
In March 2007, the company was taken private after it accepted a £715 million offer from a consortium led by HBOS and Sir Tom Hunter, the Scottish entrepreneur.{{cite web |url=http://www.building.co.uk/news/finance/crest-nicholson-goes-private/3083041.article |title=Crest Nicholson goes private |publisher=Building |date=16 March 2007 |access-date=1 March 2013}}{{cite web |url = https://www.marketwatch.com/story/crest-nicholson-shareholders-approve-715-million-pound-takeover-bid |title = Crest Nicholson shareholders approve 715-million-pound takeover bid |website = marketwatch.com |first = Molly |last = Dover |date = 16 April 2007}} The company was re-listed on the London Stock Exchange in February 2013.{{cite web |url=https://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/9868696/Housebuilder-Crest-Nicholson-enjoys-first-float-of-the-year.html |title=Housebuilder Crest Nicholson enjoys first float of the year |publisher=The Telegraph |date=13 February 2013 |access-date=29 June 2013}}
During 2010, subsidiary company Crest Nicholson (Londinium) Ltd. was party to a high court and Court of Appeal case which addressed the difference between the court's role in construing the terms of a contract which two parties had agreed, and its role in assessing whether an offer capable of acceptance had been made, and if so, whether it had been accepted.England and Wales Court of Appeal (Civil Division), [https://www.bailii.org/ew/cases/EWCA/Civ/2010/1331.html Crest Nicholson (Londinium) Ltd. v Akaria Investments Ltd.], 2010, EWCA Civ 1331 (25 November 2010), accessed 26 December 2020
In May 2018, it was reported that Stephen Stone, the then chief executive of Crest Nicholson, had stepped down after heading the housebuilder for 12 years. Strong became the firm's executive chairman while Patrick Bergin was appointed chief executive.{{Cite news |url=https://www.constructionnews.co.uk/markets/sectors/housing/crest-nicholson-boss-steps-down-as-profit-rises/10027390.article |title=Crest Nicholson boss steps down as profit rises |work=Construction News |access-date=15 May 2018 |language=en-GB}}{{Cite news |url=https://www.telegraph.co.uk/business/2018/01/24/crest-nicholson-boss-steps-housebuilder-reports-growing-profits/ |title=Crest Nicholson boss steps down as housebuilder reports growing profits |last=Fraser |first=Isabelle |date=2018 |work=The Telegraph |access-date=15 May 2018 |language=en-GB |issn=0307-1235}}
During June 2018, it was reported that the company would be pulling back from the London housing market as a cost-cutting measure.{{Cite news |url=https://www.theguardian.com/business/2018/oct/17/crest-nicholson-issues-profit-warning-as-houses-sales-in-london-slow-brexit |title=Crest Nicholson issues profit warning as house sales in London slow |last=Monaghan |first=Angela |date=17 October 2018 |work=The Guardian |access-date=5 December 2019 |language=en-GB |issn=0261-3077}} It will close its central London office and will be less likely to buy land in London.{{Cite web |url=https://www.ft.com/content/a559503c-6e3a-11e8-92d3-6c13e5c92914 |title=Crest Nicholson pulls back from faltering London market |work=Financial Times |date=12 June 2018 |language=en-GB |access-date=9 July 2018 |last1=Evans |first1=Judith }}
In January 2019, Crest Nicholson put a £400 million housing development in Hove on hold in response to the company achieving lower profits. The company's chief executive, Patrick Bergin, informed The Times that "It would be imprudent of us to make a commitment on a scheme of that type when we’ve got limited visibility on future pricing."{{Cite news |url=https://www.thetimes.com/article/crest-nicholson-forced-to-halt-building-project-gmzd88prg |title=Crest Nicholson forced to halt building project |last=Clarence-Smith |first=Louisa |date=30 January 2019 |work=The Times |access-date=5 December 2019 |language=en-GB |issn=0140-0460}}
During September 2019, the company appointed Peter Truscott as chief executive along with the adoption of a new strategy of reducing overhead costs and repositioning its margins.{{Cite web |url=https://www.insidermedia.com/news/south-east/crest-nicholson-working-on-value-generating-strategy |title=Crest Nicholson working on 'value generating strategy' |last=Rannard |first=Storm |date=31 October 2019 |website=Insider Media Ltd |language=en-GB |access-date=5 December 2019}} That same month, it announced the appointment of Iain Ferguson as its new chairman.{{Cite web |last=Daniel |first=Alex |date=11 September 2019 |title=Former Stobart chair Iain Ferguson takes charge at house builder Crest Nicholson |url=https://www.cityam.com/former-stobart-chair-iain-ferguson-takes-charge-at-house-builder-crest-nicholson/ |access-date=19 June 2024 |website=CityAM |language=en-GB}}
=2020-present=
In January 2020, Truscott said the company had over-concentrated on building off-site manufacturing capabilities, and would now focus on improving on-site operational efficiency and on introducing group-wide construction specifications to cut material buying costs.{{cite news |last1=Prior |first1=Grant |title=Crest Nicholson blames profit wobble on offsite focus |url=https://www.constructionenquirer.com/2020/01/28/crest-nicholson-blames-profit-wobble-on-offsite-focus/ |access-date=28 January 2020 |work=Construction Enquirer |date=28 January 2020}} Poor financial performance was blamed on political uncertainty and the impact of the COVID-19 pandemic and led to the company consulting on 130 redundancies from its 966-strong workforce.{{cite news |title=Crest Nicholson interims show £51m loss; job losses to come |url=https://www.theconstructionindex.co.uk/news/view/crest-nicholson-interims-show-51m-loss-job-losses-to-come |access-date=24 June 2020 |work=The Construction Index |date=24 June 2020}}
During June 2023, Crest Nicholson was found liable for the actions of a site manager who an employment tribunal stated to have raped a colleague after a work Christmas party.{{cite news |last1=Weinfass |first1=Iain |title=Housebuilder held liable for rape committed after its Christmas party |url=https://www.constructionnews.co.uk/legal/housebuilder-held-liable-for-rape-committed-after-its-christmas-party-05-06-2023/ |access-date=12 June 2023 |work=Construction News |date=5 June 2023}}
In June 2024, Crest Nicholson reported a pre-tax loss of £30.9 million in the half year to April 2024 on turnover of £257.5 million. Having reported provisions for £15 million of legacy contract problems relating to its former Regeneration division, it increased the provision to £31.4 million following a review supported by external consultants. The company also set aside £145.2 million relating to historic building fire safety costs. CEO Peter Truscott stepped down and was replaced by former Persimmon executive Martyn Clark.{{cite news |last1=Prior |first1=Grant |title=Build problems plunge Crest Nicholson to a £31m loss |url=https://www.constructionenquirer.com/2024/06/13/build-problems-send-crest-nicholson-to-a-31m-loss/ |access-date=13 June 2024 |work=Construction Enquirer |date=13 June 2023}}
Also in June 2024, Crest Nicholson said it had rejected a takeover bid from Bellway after receiving all-share proposals on 25 April and 14 May, the latter valuing the firm at £650 million.{{cite news |last1=Croft |first1=Jane |title=UK housebuilder Crest Nicholson rejects £650m Bellway bid |url=https://www.theguardian.com/business/article/2024/jun/14/crest-nicholson-rejects-bellway-bid-property-market |access-date=14 June 2024 |work=Guardian |date=14 June 2024}} As a further all-share offer from Bellway remained possible until 11 July 2024, Crest Nicholson rejected a competing approach from rival housebuilder Avant Homes.{{cite news |last1=Prior |first1=Grant |title=Crest Nicholson rebuffs approach from another rival |url=https://www.constructionenquirer.com/2024/07/05/crest-nicholson-rebuffs-approach-from-another-rival/ |access-date=8 July 2024 |work=Construction Enquirer |date=5 July 2024}}{{cite news |title=Crest Nicholson parks Avant bid pending new Bellway offer |url=https://www.theconstructionindex.co.uk/news/view/crest-nicholson-parks-avant-bid-pending-new-bellway-offer |access-date=8 July 2024 |work=The Construction Index |date=8 July 2024}} On 10 July 2024, the Crest Nicholson board said it was "minded to recommend" an improved Bellway takeover offer of £720m to the company's shareholders.{{cite news |last1=Gayne |first1=Daniel |title=Crest Nicholson board 'minded to recommend' Bellway's improved £720m takeover offer to shareholders |url=https://www.building.co.uk/news/crest-nicholson-board-minded-to-recommend-bellways-improved-720m-takeover-offer-to-shareholders/5130382.article |access-date=10 July 2024 |work=Building |date=10 July 2024}} On 8 August, the two companies were given a further 12 days to finish their due diligence work regarding the proposed merger,{{cite news |title=Crest Nicholson given more time to vet Bellway's offer |url=https://www.theconstructionindex.co.uk/news/view/crest-nicholson-given-more-time-to-vet-bellways-offer |access-date=9 August 2024 |work=The Construction Index |date=8 August 2024}} but Bellway called off its bid on 13 August 2024.{{cite news |last1=Marrs |first1=Colin |title=Bellway calls off £720m Crest Nicholson merger bid |url=https://www.constructionnews.co.uk/financial/bellway-calls-off-720-crest-nicholson-merger-bid-13-08-2024/ |access-date=13 August 2024 |work=Construction News |date=13 August 2024}}
In January 2025, Crest Nicholson delayed publication of its latest financial results to give its auditors more time to confirm historic building fire safety costs.{{cite news |last1=Prior |first1=Grant |title=Crest Nicholson delays results over £250m fire safety provision |url=https://www.constructionenquirer.com/2025/01/14/crest-nicholson-delays-results-over-250m-fire-safety-provision/ |access-date=14 January 2025 |work=Construction Enquirer |date=14 January 2025}} In February 2025, Crest Nicholson reported a £143.7m pre-tax loss for the year to 31 October 2024 on revenue of £618.2m. The results included a total fire remediation provision of £249.3m. Total home completions were down 7.3% at 1,873 (2023: 2,020).{{cite news |title=Crest Nicholson posts £144m loss |url=https://www.theconstructionindex.co.uk/news/view/crest-nicholson-posts-144m-loss |access-date=4 February 2025 |work=The Construction Index |date=4 February 2025}}
References
{{reflist|30em}}
External links
- [http://www.crestnicholson.com/ Official site]
{{FTSE 250 Index constituents}}
{{Construction industry in the United Kingdom}}
{{Real estate in the United Kingdom}}
{{Authority control}}
Category:Housebuilding companies of the United Kingdom
Category:Companies based in Surrey
Category:Construction and civil engineering companies established in 1963
Category:Companies listed on the London Stock Exchange