CREST NICHOLSON POSTS £35M LOSS AS LENDER TALKS CONTINUE

Crest Nicholson, the London-listed housebuilder, reported a pre-tax loss of £35 million for the six months to the end of April, a reversal from a £9 million profit in the equivalent period the previous year. The company said it remains in talks with its lenders to secure amended terms on its debt, with discussions described as "well-progressed but ongoing". The firm has been granted temporary waivers and has until the end of September to reach a final agreement. Its share price fell nearly 10 per cent on Thursday morning to 66p, having shed more than half its value so far this year.

Crest Nicholson attributed the loss to high interest rates, rising costs and weakened consumer confidence. The company's gross margin contracted from 14 to 7 per cent during the period. The firm reported that customer enquiries, visitor levels and land market sentiment softened since April, although pricing remained generally resilient. In response, Crest Nicholson said it is reducing land purchases, slowing development starts and selling non-core land to preserve cash.

The housebuilder revised its completion forecast to between 1,400 and 1,500 homes this year, down from 1,691 homes last year, and guided towards the lower end of its earnings forecast of £5 million to £15 million. Crest Nicholson stated that the fundamental UK housing market conditions remain supportive, citing undersupply of homes and recent government planning reforms. The company has called on incoming Prime Minister Andy Burnham to implement measures to accelerate housebuilding.