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Crest Nicholson Holdings PLC’s lenders have hired consulting firm Alvarez & Marsal Holdings LLC for advice on managing the Crest’s finances, Sky News reported on Friday. The syndicate of lenders to the Surrey, England-based housebuilder includes Barclays PLC, HSBC Holdings PLC, Lloyds Banking Group PLC and NatWest Group PLC, according to Sky. Last month, Crest delayed the publication of its results for the six months ended April 30 until July 16, to facilitate ongoing discussions with its lenders. At the time, the housebuilder said it was seeking a temporary covenant relaxation and that the talks should ‘conclude by mid-July’. Sky on Friday cited a source close to Crest as saying that the company was not in financial distress, and still had headroom within its existing borrowing facilities. Crest Nicholson shares traded 2.3% higher at 70.80 pence late Friday morning in London, but have tumbled 60% over the past year. This follows an April trading update in which Crest Nicholson lowered full-year guidance and warned of higher-than-forecast debt amid ‘a marked softening in sentiment’. The company eyes earnings before interest and tax for financial 2026 from £5 million to £15 million and a year-end net debt position of £100 million to £120 million. JPMorgan said this implies pretax profit between breakeven and a loss of £10 million in financial 2026, compared with previous guidance of £32 million to £40 million, and profit of £2.9 million in financial 2025. More broadly, the UK housebuilding sector is suffering the knock-on effects of the US-Israeli war with Iran. UK construction activity saw its sharpest downturn in six years in May, survey results showed on Thursday. The S&P Global construction purchasing managers’ index fell to 38.2 points in May from 39.7 in April, well below the 50-point threshold separating growth from contraction. This marked the 17th consecutive month of decline for the index, and the steepest drop since May 2020. Excluding that coronavirus pandemic period, it marked the sharpest contraction since March 2009. All three major categories of construction reported a slowdown, though residential was the weakest performer, with its activity index falling to 36.0 points. Construction firms cited weak market conditions and the impact of elevated borrowing costs on UK housing demand. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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