Overview
- Crest Nicholson, which disclosed the half-year figures on Thursday, posted a £35.2 million pre-tax loss for the six months to April, a swing from a £9.4 million profit a year earlier.
- The group said lender negotiations remain 'well progressed' and it has agreed temporary covenant waivers that give it time to document an amended facility with a runway to the end of September.
- To protect cash, management has cut back land purchases, slowed starts on some sites, put non-core land up for sale and said it expects to complete 1,400–1,500 homes this year.
- The company blamed weaker sales rates, higher borrowing costs and input-price pressure — with building-materials around 3–4% higher — plus political tax uncertainty for softer demand and tighter margins.
- The update sent the shares down about 10% on the morning of the announcement and pushed full-year underlying earnings guidance to the lower half of the £5m–£15m range, and failure to finalise amended lender terms by the extended deadline could force deeper asset sales or further cost cuts.