Crest Nicholson Slumps on Annual Loss Warning

The firm now projects a loss of 10 million pounds before interest and taxes for the period ending in October. This marks a significant departure from previous guidance, which had anticipated an operating profit of up to 10 million pounds. Furthermore, management lowered its full-year sales target to a range of 1,350 to 1,400 units, down from an earlier forecast of 1,500.

Stretched buyer budgets and intense price competition have stifled demand throughout the summer. Data shows the net open-market sales rate per outlet dropped to 0.35 per week over the last six weeks, compared with 0.48 in the first half of the year and 0.55 during the same period in 2023. Chief Executive Martyn Clark noted that while the timing of a recovery is unclear, the group is prioritizing liquidity and execution to stabilize the business for when conditions eventually normalize.