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Crest Nicholson Holdings PLC on Thursday said it expected profit to decline amid ongoing housing market challenges, but noted some cause for optimism looking further ahead. The Surrey, England-based housebuilder said it expects adjusted pretax profit to be between £45.0 and £50.0 million for the financial year ended October 31, having guided for £50.0 million in August. At the top end of the range, it represents a 64% decline from the £137.8 million achieved in the prior year. The company said it added several ‘high quality’ sites to its portfolio, with planning approvals underway. Crest also updated on the planned streamlining of its operations, noting the deterioration in trading conditions seen in the second half. It plans to cut administration costs by around £3.0 million for financial 2024, moderate the pace of growth in Yorkshire, incorporate its new East Anglia division into the existing Eastern division, and ‘align headcount and resources to the expected level of output’. Administrative expenses in financial 2022 were £51.1 million, flat from a year prior, despite revenue growth of 16% to £913.6 million. ‘These are difficult decisions to take but will ensure the group is well positioned to recover strongly as more supportive market conditions return,’ said Chief Executive Peter Truscott. ‘We expect the housing market will remain challenging as we head into 2024... However, there are reasons to be optimistic with year-on-year inflation now halved and real wage growth starting to be felt in households across the UK. We have acquired some excellent sites that are at advanced stages in the planning process, leaving us well positioned to trade in whatever market conditions emerge,’ he added. Crest Nicholson shares were 1.1% lower at 187.10 pence each on Thursday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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