Crest Nicholson lowers profit expectations again as costs mount
Crest Nicholson, the housebuilder, has once again cut its profit forecast due to rising costs from a delayed housing project in Surrey.
The company also anticipates a legal bill following a fire at one of its sites last year. Crest now expects an adjusted pre-tax profit of £41 million for the financial year ending in October, down from its previous prediction of £45 million in November.
The firm has been hit by increased costs related to the delayed completion of a regeneration scheme in Farnham, on top of the roughly £11 million flagged last year. The Brightwells Yard regeneration scheme, which Crest won the contract for in 2003, has been slow to start and has seen several changes to the construction plans.
Once finished, it will feature hundreds of flats as well as a shopping centre, cinema and restaurants. Crest is currently reviewing the costs associated with this long-term project and other "legacy" housing sites, which will result in additional expenses.
The company shared some tough news, saying it's looking at losing £13 million because of a legal issue about a fire that hurt one of its housing sites in 2021. But they also had some good news about how people are feeling about buying houses now that mortgage deals are getting better.
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Big lenders like Barclays, HSBC UK, Halifax, and Yorkshire Building Society have all cut their rates this year. This has got people thinking that there might be more buzz in the property market soon.
"Although it is too early to gauge customer behaviour, we have been encouraged by an increase in customer interest levels and inquiries this calendar year," the firm said.
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