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Crest Nicholson has reduced its adjusted pre-tax profit guidance for the year that ended recently, placing expectations near the lower end of its earlier range due to weaker sales and slower home completions in a cooling UK housing market. The company completed 1,691 homes, just meeting the lower limit of its 1,700-1,900 target, and saw a drop in weekly open-market sales toward the end of the financial year. As part of its turnaround efforts, the company is reshaping its land bank, selling land parcels, and cutting about 50 jobs under its ongoing restructuring plan.
Crest Nicholson has revised its annual profit expectations after a subdued finish to its financial year in a slowing UK housing market. The homebuilder completed 1,691 units in the year that ended in the past week, narrowly reaching the lower end of its earlier target of 1,700 to 1,900 completions. The company noted that market activity remained weaker than expected, which directly affected both sales momentum and delivery volumes. Advertisement
Buyer demand slowed further toward the end of the year. Weekly open-market sales fell to 0.45 per site during the final 13 weeks, compared with 0.53 per site during the year's first half. This decline suggested a softer environment for new-build homes, reflecting broader caution among potential buyers.
Due to these conditions, Crest Nicholson now expects its adjusted pre-tax profit to fall at the lower end of its previous estimate of GBP 28 million to GBP 38 million, with the possibility of coming in slightly below that range. The company said market conditions are likely to remain challenging for the near term.
Chief executive Martyn Clark stated that the company is focusing on aligning its land bank with its long-term plan. He indicated that the organisation is working on rightsizing and adjusting its portfolio so it is better positioned for future conditions. These changes are being carried out under its ongoing 'Project Elevate' turnaround initiative.
As part of this plan, the company has begun consultations to close one divisional office and reduce its workforce by around 50 roles. Alongside these internal changes, Crest Nicholson has sold five land parcels from larger projects and has already secured about GBP 50 million in land-related receipts for its 2026 financial year. The company's net debt remains toward the better end of its guidance range of GBP 40 million to GBP 90 million.
Market analysts noted that the profit revision may not be welcomed by investors, particularly at a time when several other major UK housebuilders such as Barratt Developments, Redrow and Taylor Wimpey have already highlighted weaker demand and uncertainty around possible tax changes expected to be announced in the upcoming UK government budget later this month.
Over recent years, the UK housing sector has experienced shifts linked to rising interest rates, affordability pressures and broader economic uncertainty. These factors have contributed to uneven demand and cautious buyer sentiment, which are now being reflected more visibly across the industry.
Source Reuters
5th Jun, 2025
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