好色先生TV

Housebuilder Crest Nicholson is to review 鈥渁ll cash commitments鈥� next year as it faces up to a diminishing cash position in light of the weakening housing market, executives at the business have said.

The firm鈥檚 group finance director Duncan Cooper told analysts yesterday that Crest would likely end the year with less than 拢100m in net cash after the firm reported that sales had dried up in recent weeks in the face of soaring interest rates.

The value of the 拢913m turnover firm has dropped by 10% after it after sales rates in recent weeks had halved.

Cooper said there was no 鈥渁larm鈥� at the business, which still had a 鈥渧ery very strong鈥� financial position.

However, he said: 鈥淎s we look into next year, and start to think about the shape of the group, we鈥檒l need to give careful consideration to the liquidity position if these sales rates, and this sales environment persists.

鈥淲e want to make sure we are looking at all cash commitments into next year and [be] thinking our way that through very carefully.鈥�

In answer to a question, Cooper said that it was 鈥渟ensible鈥� to assume that net cash will fall to below 拢100m at the end of the firm鈥檚 financial year, which runs to the end of October. This compares to net cash of 拢277m at the same point last year.

Crest Nicholson, which until yesterday had been embarked on an expansion drive, yesterday announced a round of restructuring measures which will see its newly created East Anglia division merged into its neighbouring Eastern division, and growth slowed at the recently set up Yorkshire business.

>>See also: Top 150 Housebuilders and Contractors

Crest said it will report adjusted pre-tax profit of 拢50m for the year, compared to the 拢73m previously guided.

Chief executive Peter Truscott also yesterday played down the prospects of significant further investment in land in the second half of the current financial year, given the purchase of sites in the first half. Truscott said the current reservation rate, of 0.25 sales per outlet per week, was around half of what he would normally expect at this time of year in a usual market, and that selling conditions were tougher in the south where prices were higher.

However, Truscott said Crest wasn鈥檛 anticipating having to make land writedowns, and added that Crest now expected interest rates to come down and provoke stronger housing market conditions in the 鈥渟econd half of 2024 and 2025鈥�.