Housebuilder in earnings blow after ‘difficult’ period

Housebuilder Crest Nicholson says earnings are set to slide to a surprise loss after “difficult” summer trading.

The firm says it has been impacted by fewer-than-expected home completions amid a “more subdued” summer property market.

Bosses at the Surrey-based company say its sales rate slowed over the past six weeks as “affordability constraints and competitive pricing” pressed down on demand.

The operator – whose development portfolio stretches across England – now expects to deliver between 1350 and 1400 sales over the current financial year, which is down from previous guidance of 1400 to 1500.

The firm also revealed it is set for a loss in earnings before interest and tax of around £10 million, having previously guided towards a profit of between £5 million and £10 million.

The business reported a pre-tax loss of £35.2 million for the six months to the end of April in its previous update.

Officials said the firm is reducing its debt levels quicker than expected, cutting its previous debt guidance by around £30 million.

Chief executive Martyn Clark said: “While the trading backdrop has remained difficult through the summer, we are making tangible progress on the actions within our control.

“Although the timing of a broader market recovery remains uncertain, the group is taking the right actions to protect liquidity and improve operational execution, while positioning the business for recovery when market conditions normalise.”

The business’ development book features sites in Buckinghamshire, Essex, Leicestershire and Suffolk.

It has further estates in counties including Berkshire, Hampshire, Staffordshire, Sussex and Yorkshire.

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.