Crest Nicholson boost as lending talks continue

Housebuilder Crest Nicholson says it has been given breathing space by lenders as it aims to shore up finances after sinking to a loss.

The London-listed company has agreed a further extension of a temporary waiver on an element of its loan agreement until November 30.

Bosses say it remains in “constructive discussions” with lenders to “amend its covenants and ensure it has the appropriate level of funding and liquidity going forwards”.

The Surrey-headquartered firm has been taking steps to reduce its debts at a faster pace while also seeking temporary relaxation of the terms of its agreements with lenders.

It is expecting debt levels to be between £70 million and £90 million by the end of the financial year – an improvement of about £30 million compared with previous expectations.

Crest reported a pre-tax loss of £35.2 million for the six months to the end of April and warned it was expecting to report an annual loss.

It comes as the builder flagged tougher conditions in the housing market and said it had been a quieter summer than it was expecting.

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