Crest warns again on profits

Crest Nicholson has issued another profit warning for its 2023 financial year due to legacy scheme issues.

Giving an update on its year ending October 31 2023, the housebuilder said that it now expects adjusted pre-tax profit to be £41 million after anticipating a range of £45 million to £50 million as reported on November 16. This followed an originally anticipated profit of £73.7 million.

Crest cited “further additional costs” associated with legacy sites following a “comprehensive review” of the work required on these. This was after the business recorded £11 million of incremental costs for its long-running Brightwells Yard in Farnham, prompting the last profit revision in November.

It also now expects an exceptional charge of £13 million for a legal claim on a fire-damaged low-rise apartment scheme that it built. Crest said this was not part of its ongoing fire remediation programme.

“The group is addressing this claim diligently and efficiently and will provide further details in our preliminary results,” the firm stated.

Crest also said it was “encouraged” by an improvement in customer interest and enquiries since the start of 2024, following a reduction in mortgage rates. But as with Taylor …