Housebuilder says it has been hit by ’subdued’ market and pre-Budget uncertainty
Crest Nicholson has warned its pre-tax profit may be lower than expected.
In a trading update for the year to 31 October, the housebuilder said its adjusted pre-tax profit may be at or below its guidance range of £28m to £38m.
It said this reflects “a housing market that has remained subdued through the summer, and the continued uncertainty surrounding government tax policy ahead of the forthcoming budget”.
Crest Nicholson said it is now consulting on closing one of its divisional offices and placing around 50 roles at risk of redundancy. This is part of its ‘Project Elevate’ transformation plan and follows a review carried out by new chief executive Martyn Clark after the firm made a loss of £144m last year.
Clark said progress across a number of areas is “evident”.
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He said: “A key focus area of our strategy is the balance sheet where we have tightened our grip on inventory and cost control.”
He said net debt for the year is at the “better end” of its guidance range of £40m to £90m.
The group said it has completed 1,691 units in the year, slightly below its guidance range of between 1,700 and 1,900 and down on the 2,020 completed the previous year.
Its open market sales increased by 5% to 1,095, which it said demonstrated enhancements to its sales strategy.
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