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The company reported an adjusted pre-tax profit of £2.6 million / Image source: Adobe
  • Adjusted operating profit of £6.2 million for first half
  • Martyn Clark will take over as CEO on 14 June
  • Dividend slashed to 1p per share

Shares in Crest Nicholson (CRST) were down over 8% to 221p in morning trading as the housebuilder warned on profit. Other housebuilding shares fell, albeit more modestly, in sympathy.

It reported an adjusted operating profit of £6.2 million for the six months ending 30 April, a 71.9% fall compared to the same period a year ago.

The adjusted operating profit figure included a one-off £5.9 million charge related to completed sites.

‘As a result, and including the one-off pre-exceptional charge for completed sites, the group expects full year 2024 adjusted pre-tax profit to be between £22 million to £29 million,’ said Crest Nicholson. This is materially below analyst expectations of £38 million.

The company reported an adjusted pre-tax profit of £2.6 million, a fall of 87.6% for the first six months of the year.

Crest Nicholson shareholders ‘felt the pinch’ as the board declared an interim dividend of 1p per share compared to 5.5p per share in the same period a year ago.

It has not been a good year so far for the company, back in March the firm had decided to take a large remediation charge for build defects.

Crest Nicholson shares slide 10% on unexpected build-quality issues

The company said: ‘The imminent general election is creating some short-term uncertainty, but this is anticipated to be alleviated in July once the outcome is known.’


As previously announced on 23 January 2024, CEO Peter Truscott will retire from the board on 14 June after joining Crest Nicholson in 2019.

Martyn Clark will take over as CEO on 14 June. Clark was previously the (chief commercial officer) COO of rival housebuilder Persimmon (PSN).

Russ Mould, investment director at AJ Bell said: ‘The housebuilding sector was supposed to be on the path to recovery, but Crest Nicholson’s latest results are at odds with that narrative.

‘The company says since Easter it has seen a softening of the momentum which had built up at the start of the year.

‘The company and the wider sector will hope this relates more to short-term uncertainty around the election than the fact interest rates look set to stick at a higher level for longer than hoped.

‘This has translated into volatility in the mortgage market and slowed the hoped-for reduction in borrowing costs which is such a crucial driver of demand.’

DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Tom Sieber) own shares in AJ Bell. 



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Issue Date: 13 Jun 2024