- Crest Nicholson Holdings
- 19 November 2025 14:09:41
Source: Sharecast
The bank said challenging market conditions have resulted in FY25 profit coming in at the low end of expectations, which results in downgrades to its - and consensus - forecasts.
"Notwithstanding weaker trading, we note the progress the new management team is making on operational improvements, which will stand the company in good stead when customer demand recovers," it said.
"We also note a compelling TNAV valuation. However, without an obvious near-term catalyst, we retain our hold rating."
Berenberg pointed out that Crest Nicholson said FY25 pre-tax profit would be at the low end or "marginally below" its prior guidance range of £28m to £38m.
"Our prior PBT forecast of £34m was around the midpoint of the prior company guidance range, which we cut by 18% to the low end of the range (£28m).
"Reflecting an assumption of lower (but still positive) volume growth and margin recovery, we also cut our 2026 and 2027 PBT forecasts by 23% and 20% respectively. Overall, we cut our PBT and EPS forecasts by c20%, on average, over the period 2025-27."
Elsewhere, Panmure Liberum reiterated its ‘buy’ rating on pub group Young’s as it said that upgrade potential remains.
Panmure noted that Young’s interim report was consistent with its last trading update, delivering total sales growth of 5.4%.
"Combined with operating margin improvements and lower net debt, this drove a 9.9% improvement in PBT to £31.1m and an 8.5% rise in EPS to 34.95p," it said. "Importantly, this marks a return to EPS growth following Covid-related and City Pub acquisition share dilution, with further accretion to come from the newly announced £10m share buyback."
Panmure said current LFL sales growth of 4.2% puts Young’s ahead of its expectations. However, "we refrain from upgrading for now given tougher prior-year comparatives, persistent inflationary pressures, and caution ahead of the Budget.
"That said, upgrade potential remains, and we reiterate our buy recommendation."
Panmure Liberum has a 1,450p price target on the stock.
