Rolling coverage of the latet economic and financial news
UK housebuilder Crest Nicholson has startled investors with a profits warning this morning, sending its shares sliding by over 12%.
Crest now expects to make a loss this financial year, and to build fewer homes than previously forecast.
Market conditions have been more subdued than expected through the seasonally quieter summer trading period, with affordability constraints and competitive pricing continuing to weigh on open market sales rates.
Challenging market conditions will see Crest Nicholson sell 50-100 fewer homes this year than it had previously guided, small numbers which will have a big impact on financial performance, turning small profit into a small loss.
Not what the Group will have wanted as it is currently renegotiating its banking covenants, however year-end net debt is expected to be c.£30m better than previously expected due to fire remediation recoveries and land sale revenues demonstrating that Crest is taking a proactive approach to challenging market conditions.
