3rd Sep 2026 12:08
(Alliance News) - Crest Nicholson Holdings PLC on Thursday announced reductions to its full-year guidance, citing a "difficult" summer trading environment.
In response, its stock fell 9.0% to 55.80 pence around midday in London.
The Surrey, England-based housebuilder anticipates a loss before interest and tax of around GBP10 million for 2026, having previously guided for Ebit profit of between GBP5 million and GBP10 million. Previously, alongside its half-year results, it had forecast Ebit at the lower half of this range.
This "reflects lower expected completions following weaker open-market demand, and continued competitive pricing, particularly in bulk transactions," Crest Nicholson said.
The firm expects between 1,350 and 1,400 completions for the year, down from prior guidance of 1,400 to 1,500. It said build cost inflation remains in line with previous guidance of around 3% to 4%, mainly due to materials prices.
"Market conditions have been more subdued than expected through the seasonally quieter summer trading period, with affordability constraints and competitive pricing continuing to weigh on open market sales rates," it explained.
However, Crest Nicholson said it continues to make good progress with its cash optimisation programme, having concluded a further material fire remediation recovery and an additional land disposal.
Consequently, Crest Nicholson expects to report net debt of between GBP70 million and GBP90 million as of December 31, down from previous guidance of GBP100 million to GBP120 million.
It also said it "remains in constructive discussions with its lenders to amend its covenants and ensure that it has an appropriate level of funding and liquidity going forwards". However, it expects "some slippage in the current timetable".
"While the trading backdrop has remained difficult through the summer, we are making tangible progress on the actions within our control," Chief Executive Martyn Clark commented, adding: "We are building a stronger operational platform through tighter cost control, improved procurement, disciplined land and WIP management, and a continued focus on build quality and customer service.
Looking ahead, our new house types remain on track to contribute from the end of FY27...the group is taking the right actions to protect liquidity and improve operational execution, while positioning the business for recovery when market conditions normalise."
By Emma Curzon, Alliance News reporter
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