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Crest Nicholson Holdings PLC on Monday announced another profit warning for financial 2023, following a cost review. The Surrey, England-based housebuilder said it now expects adjusted pretax profit to be around £41 million for the year ended October 31. This would constitute a 71% decline from the £137.8 million achieved in the prior year. Shares in Crest fell 4.1% to 207.64 pence each in London on Monday morning. Back in November, Crest had guided for a range of £45.0 and £50.0 million, which was cut from its prior guidance for £50.0 million. Crest explained that this stemmed from a ‘comprehensive’ review of costs associated with the Brightwells Yard, Farnham contract, as well as other legacy assets, which identified further additional costs. In November, it had recorded an incremental cost movement of around £11 million in its second half for Brightwells Yard. Additionally, Crest now expects an exceptional charge of £13 million relating to a legal claim that pertains to a low rise apartment scheme it had built, which was damaged by fire in 2021. The charge is not cash in financial 2023, it said. ‘The group is addressing this claim diligently and efficiently and will provide further details in our preliminary results. This is unrelated to the general fire remediation programme that the group is currently delivering,’ Crest added. More positively, it acknowledged the ‘more constructive backdrop’ for house buyers and the wider housing market stemming from the recent reduction in mortgage rates. ‘Although it is too early to gauge customer behaviour, we have been encouraged by an increase in customer interest levels and inquiries this calendar year,’ Crest said. The company releases its annual results next week Tuesday. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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