Crest Nicholson flags surprise £10m loss as UK housing market stays weak

Crest Nicholson warned that it will record an operating loss of roughly £10 million for the year ending 31 October, reversing a previous expectation of a modest profit. The firm cut its home-completion guidance to 1,350-1,400 units, citing a softer summer market and a six-week dip in sales caused by tighter affordability and competitive pricing. The announcement triggered a share price drop of over 10 % and follows a pre-tax loss of £35.2 million for the six months to April.

In response, Crest has closed one divisional office, reduced staff by 50, and accelerated debt reduction, aiming for net borrowings of £70-90 million instead of the earlier £100-120 million range. The builder continues negotiations with lenders to amend banking covenants, describing the talks as constructive but slower than hoped. Chief executive Martyn Clark said the group is focusing on liquidity and operational efficiency while awaiting a broader market recovery.