Crest Nicholson has reported a statutory pre-tax loss of £35.2million in its half-year results, as it looks to amend its revolving credit facility.
The loss comes after a £9.4million profit in the same period the previous year.
The trading update, covering the six months to 31 April, saw the housebuilder’s turnover fall by 21% from £249.5million to £197.6million, while its completions also fell to 584 from 739.
As a result, Crest now expects its full-year house sales to total around 1,400, which would represent a 17% drop on the previous year. The housebuilder also predicts that its full-year earnings will reach the lower half of its £5million to £15million forecast.
The trading update said that market conditions in the second half of 2025 were challenging, due in part to speculation that property taxes would change in the budget. However, after the Group had seen an encouraging uplift in sales activity from mid-January to the end of March, consumer confidence weakened amid broader economic, political and geopolitical uncertainty. From April onwards, Crest says that pricing has generally remained resilient, but it had seen customer enquiries, visitor levels and land market sentiment soften.
As a result, the Group has adopted a more cautious outlook for the remainder of the financial year.
Martyn Clark, CEO of Crest Nicholson, commented: “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.”
“While near-term market conditions remain subdued, we are making clear progress with Project Elevate. We have strengthened governance and accountability, advanced our new mid-premium house type range, retained our 5-star HBF customer satisfaction rating and continued to improve construction quality metrics.”
“Our lending group remains supportive, and we are in constructive discussions with them to amend certain parts of the Revolving Credit Facility. These discussions are well-progressed but remain ongoing and we have agreed further temporary waivers to allow us time to document and complete a covenant amendment.”
“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.”
