Housebuilder recovered nearly £12m from third parties for remediation cost in the half
Pre-tax profit increased on reduced revenue in Crest Nicholson’s half-year results.
Figures for the six months to 30 April 2025 revealed that pre-tax profit rose on a statutory basis to £9.4m, from a loss of £30.9m in the same period the year prior.
However revenue was down from £257.5m to £249.5m.
Pre-tax profit was also up on an adjusted basis, from £2.6m to £7.9m. This came after adjustment to remove exceptional items, which in 2024 were mostly comprised of changes to estimated costs associates with completed sites that were “no longer part of the core strategy”.
Chief executive Martyn Clark said he was pleased that the housebuilder had “delivered trading in line with expectations” and was on track to meet its full year guidance.
“We have taken swift action to reduce administrative expenses with the merger of the Midlands and Yorkshire divisions, amongst other initiatives delivering a 6% adjusted administrative expenses reduction year on year,” he said.
“”The housing market continues to show signs of stabilisation with an incrementally easing planning system, improving affordability and strong support from lenders.
“Customer appetite for the mid premium segment of the market, which is characterised by high-quality, well-designed homes in sought-after locations, and which is our focus segment remains robust.”
It completed 739 units in the period, compared with 788 in the same year prior. There was an increase in affordable delivery (from 176 to 197), but open market and bulk/PRS delivery dropped.
Crest Nicholson said that the overall reduction in volume was “driven by the Group’s new strategy to increase profitability by focusing on open market homes in the mid premium segment”.
>> Read more: ‘Tough and disappointing’ year for Crest Nicholson as it makes £144m loss
The firm expects to deliver up to 1,900 homes by the end of the year.
The group said it was making progress with its fire remediation programme, with 293 buildings now in the scope of the Developer Remediation Contract.
At the end of May, Crest Nicholson had completed 279 external wall and 270 internal assessments, and said it would complete all surveys by the July deadline.
Re-evaluation of the programme has resulted in a £2.4m increase in the total expected cost of the programme.
Crest Nicholson also said it was making “good progress pursuing third parties” and had recovered £11.8m in the half, with total recoveries now totalling more than £32m.
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