Crest Nicholson Forecasts £10 Million Loss Amid Housing Slump

The UK homebuilder Crest Nicholson Holdings Plc reversed its previous financial guidance, now projecting a full-year loss of approximately £10 million before interest and tax. This replaces a previous forecast of a £5 million to £10 million profit. The company attributed the downturn to a subdued housing market, lackluster pricing, and constrained buyer purchasing power resulting from high mortgage costs.

As part of the revised outlook, the company downgraded its completion targets to between 1,350 and 1,400 units. While expected year-end net debt improved to between £70 million and £90 million following land sales, the company warned that negotiations with lenders to amend borrowing terms are taking longer than anticipated.

Chief Executive Officer Martyn Clark stated that the group is taking actions to protect liquidity and improve operational execution to position the business for recovery when market conditions normalize. The company also noted it will book an exceptional profit item following a fire remediation recovery from a third party related to safety repairs.