Crest Nicholson Shares Tumble After Housebuilder Slashes Profit Guidance

Shares in Crest Nicholson Holdings plc (LON: CRST) tumbled on Thursday after the housebuilder issued a profit warning alongside a trading update, with the stock down over 10% to around 54.8p, having opened at 55.7p and fallen as low as 53.5p during the session.

The FTSE-listed housebuilder told investors that market conditions had been “more subdued than expected” over the seasonally quiet summer period, with affordability constraints and competitive pricing continuing to weigh on sales.

The company’s net open market sales rate fell to 0.35 over the last six weeks, down sharply from 0.48 in the first half of the year and 0.55 in the same period last year.

As a result, Crest Nicholson now expects full-year completions of between 1,350 and 1,400 homes, down from previous guidance of 1,400 to 1,500. More strikingly, the group now expects a full-year EBIT loss of around £10m, a reversal from prior guidance of a £5m to £10m profit, driven by weaker demand, aggressive pricing in bulk sales, and additional net realisable value provisions on some sites.

On a brighter note, the company reported progress on debt reduction, with year-end net debt now expected between £70m and £90m, roughly £30m better than previous guidance, aided by a further fire remediation recovery and a land disposal.

However, Crest Nicholson flagged delays in talks with lenders over amending covenants, saying it now anticipates “some slippage” in the timetable. CEO Martyn Clark said the group was making “tangible progress” on controllable actions despite a “difficult” trading backdrop, pointing to new house types due to contribute from late FY27.