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Crest Nicholson Holdings PLC on Thursday reported an interim loss amid challenging market conditions, but noted that the long-term fundamentals of the UK housing market remain supportive. The Surrey, England-based housebuilder said it swung to a pretax loss of £17.3 million in the six months to April 30, from a profit of £7.9 million a year prior. Revenue fell 21% to £197.6 million from £249.5 million. The company noted that build cost inflation remained a headwind which it continues to manage via procurement discipline, value engineering and tighter programme control. It said it manages build cost inflation of around 3% to 4% on average, mostly on materials, via disciplined procurement. Crest Nicholson announced no interim dividend, compared to 1.3 pence a year prior. Chief Executive Officer Martyn Clark said: ‘While market conditions remain challenging and financial performance in the first half was below the prior year, the group has taken decisive actions to preserve liquidity, reduce capital intensity and strengthen operational discipline. Lender discussions are well advanced, and the board remains focused on completing the covenant amendment process while continuing to execute Project Elevate. ‘During the period, we reduced land buying, continued to market non-core land for disposal, moderated the pace of new site starts and aligned work in progress with revised sales expectations for FY26 and FY27.’ Looking ahead, Crest Nicholson said long-term fundaments of the UK housing market remain supportive amid a significant structural undersupply of homes, resilient employment levels and government policies aimed at increasing housing delivery. The company expects land sales revenue of around £40 million in the current financial year running until October 31, down 49% from £78.8 million a year prior. Further, it anticipates earnings before interest and tax at the lower half of the previously guided £5 million to £15 million range. The firm said: ‘The group is prioritising cashflow by reducing land buying, actively marketing non-core land for disposal, moderating the pace of new site starts and aligning work in progress with revised sales expectations.’ Crest Nicholson expects net debt between £100 million and £120 million for financial 2026, up sharply from £38.2 million in financial 2025, which had jumped from £8.5 million in financial 2024. CEO Clark said: ‘Our priorities are clear: manage cashflow and liquidity, control costs, continue to improve operational performance and execute Project Elevate. These actions are creating a more disciplined and resilient Crest Nicholson, positioned to benefit when market conditions improve.’ Crest Nicholson shares fell 9.1% to 66.80 pence each on Thursday afternoon in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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