Crest Nicholson warns of £10m operating loss and fewer home completions
British housebuilder Crest Nicholson predicts an annual operating loss of roughly £10m in a property market described as subdued, cutting expected home deliveries to 1,350 to 1,400.
Crest Nicholson has revised its outlook downward after trading slowed significantly compared with the first half of the year. The company expects to complete between 1,350 and 1,400 homes in the year ending 31 October, a reduction from its prior estimate of 1,400 to 1,500 deliveries. Crest attributes weaker performance to affordable housing constraints and intense price competition that slowed sales over the last six weeks. Previously forecast profits between £5m and £10m are now replaced with an operating loss expected around £10m for the full year. This marks the third profit warning issued by the firm since April. Earlier financial results showed a pre-tax loss of £35.2m for six months ending in April. Building material costs average 3% to 4% higher than usual levels, and Crest has reduced its workforce by 50 jobs while closing one office division. Despite these headwinds, the company is accelerating debt repayment faster than anticipated, aiming for net debt between £70m and £90m by October. Management remains focused on renegotiating banking covenants to secure future funding.
