The 拢780m-turnover firm has been hit by 拢13m in 鈥渆xceptional鈥� costs linked to a fire amid other issues with 鈥漧egacy sites鈥�
Crest Nicholson has issued yet another profit warning, downgrading its profit forecast for a third time in a matter of months to 拢41m.
In November, the firm lowered its annual profit forecast for the second time to between 拢45m and 拢50m, after cutting its forecast last August from nearly 拢74m to 拢50m.
In a trading update published today, the firm said work on 鈥渓egacy sites鈥� had further hit its pre-tax profit figure for the year to 31 October 2023.
Last November, the firm revealed its 239-home 拢115m Brightwells Yard regeneration in Farnham, Surrey, had been hit by extra 拢11m in 鈥渋ncremental costs鈥�, which it said would impact profit for the second half of 2023.
In this morning鈥檚 update, the firm said it has now 鈥渃onducted a comprehensive review of the costs associated with the work required on this project as well as other legacy sites. Consequently, further additional costs have been identified which will impact FY23.鈥�
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The 拢780m turnover housebuilder also said it had to fork out an 鈥樷�渆xceptional鈥� 拢13m due to a legal claim relating to fire damage on one of its sites dating back to 2021. Crest said this was 鈥渦nrelated to the general fire remediation programme鈥� it is currently delivering.
Last year, Crest announced some details of its plan for cutting costs following a review of its cash commitments.
It said it intended to reduce administrative expenses by 拢3m, slow the pace of growth at its Yorkshire division to around 300-350 units by 2026 and merge its new East Anglia division into its eastern division.
In August, Crest warned its net cash would fall to below 拢100m, down from 拢277m the previous year.
The firm is due to publish its preliminary results on 23 January.
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