UK’s national housebuilder Crest Nicholson Holdings has revised its financial outlook for FY26, citing challenging market conditions as a key factor.
The company reports a slowdown in open-market sales, influenced by affordability constraints and competitive pricing.
In the latest trading update, the housebuilder revealed a decline in the net open market sales rate to 0.35 over the past six weeks, compared to 0.48 in the first half and 0.55 in the same period prior year.
This has led to a reduction in expected home completions for the full year, now anticipated to be between 1,350 and 1,400, down from a previous range of 1,400 to 1,500.
Crest Nicholson now forecasts an EBIT loss of approximately £10m ($13.2m), altering its earlier expectation of a potential profit ranging from £5m ($6.61m) to £10m. The revision is primarily due to decreased open-market demand and persistent pricing pressures, especially in bulk sales.
Alongside subdued market conditions, the update notes that build cost inflation remains at 3-4%, in line with previous projections, primarily driven by material costs.
Despite these pressures, the company maintains a cautious approach to transactions, aiming to navigate the current economic landscape effectively.
Crest Nicholson CEO Martyn Clark said: “While the trading backdrop has remained difficult through the summer, we are making tangible progress on the actions within our control. Our cash optimisation programme is delivering with the expected year-end net debt position now materially better.
“The Group continues to make good progress against its strategic priorities. We are building a stronger operational platform through tighter cost control, improved procurement, disciplined land and WIP management, and a continued focus on build quality and customer service.
“Looking ahead, our new house types remain on track to contribute from end of FY27. These homes will support Crest Nicholson’s repositioning towards the mid-premium segment, with a more consistent product range, improved customer proposition and the potential for greater build efficiency and stronger margins over time.”
