Crest’s profit at “lower end” of guidance

Crest Nicholson’s year-end profit is likely be at the “lower end” of expectations, it said today (November 20), citing a higher proportion of affordable homes delivery and the business still trading out of low margin sites.

In an update for the year ending October 31 2024, the housebuilder said its adjusted pre-tax profit would be in the lower guidance range of £22 million to £29 million.

Crest’s ceo Martyn Clark said 2024 had brought both “internal and external” challenges, with private open market sales volumes continuing to face “ongoing affordability concerns”.

The housebuilder delivered 1,873 units during its financial year, around 45% of which were affordable and for the private rented sector (PRS).

Its open market sales rate was 0.48 against FY 2023’s 0.52. But Crest said that in the last ten weeks of the financial year, this rose to 0.53.

During the year, it made selective land investments in “appropriately scaled sites”, with 1,158 plots secured "to ensure a good land pipeline”.

Martyn Clark said Crest’s 2025 financial year would be one “of transition” for the business, with a greater focus on private sales and prioritising “value over volume to enhance returns and margins”.

Clark also …