Crest Nicholson suffers first-half loss of £51m

Aaron Morby 5 years ago
Share

Crest Nicholson has become the first house builder to report significant losses in the first half of the year.

Crest Nicholson chief predicts house builder will return to profit in full-year
Crest Nicholson chief predicts house builder will return to profit in full-year

The firm said a double whammy of political uncertainty in the run-up to last year’s election and sales deferrals in the face of the Covid-19 pandemic saw it suffer losses of £51m in the six months to April.

This compared to a £64m profit delivered during the same period previously.

Announcing revenue halved at £240m, the firm said it would make 130 job cuts to help deliver overhead savings of £5m a year.

Crest has also identified a further £30m of build cost savings from more disciplined design and procurement.

Peter Truscott, chief executive of Crest Nicholson, said: “Despite a difficult first-half performance we have made excellent progress implementing our updated strategy.

“We cannot ignore the risks that COVID-19 presents to the UK housing market even if we cannot predict with certainty what the impact of those risks will be.

“Therefore, we have adapted our strategy by deferring the planned opening of an additional division and targeting further reductions in overheads.

“Taking decisive action now will ensure Crest Nicholson is able to flourish in whatever market conditions may emerge in the future including if the market quickly returns to growth.”

Truscott said that business was stabilising since it resumed build activity in mid-May and reopened sales offices.

“Assuming that the lockdown continues to carefully unwind with supportive measures in place to facilitate building and selling homes, the group expects profit in the second half of the year to be significantly higher,” he added.

Truscott forecast that Crest would be back in the black by the end of the full year with pre-tax profits in the £35m-£45m range.

Latest news

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
15 hours ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
23 minutes ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
16 hours ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
16 hours ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
16 hours ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
2 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
1 day ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
16 hours ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
1 day ago

Major Building Safety Regulator shake-up to end tower delays

HSE stripped of control and top fire chiefs brought in to fast-track stalled schemes
2 days ago

Hinkley trio sign Sizewell civils deal

Balfour,Bouygues and Laing O'Rourke form Civil Works Alliance for new power station
2 days ago

£3.9bn data centre plan for Ravenscraig steelworks

Green energy to power massive new steel to silicon AI campus
2 days ago

Breakthrough on HS2’s second longest tunnel

8.4 mile Northolt to Old Oak Common drive completes
2 days ago

Neilcott on fast-track to debt-free employee ownership

£22.5m loan nearly paid down after big profit year
2 days ago

TfL kicks off race for £700m Tube station upgrade

South Kensington and Elephant & Castle top the pipeline list
2 days ago

Corbyn Plant Hire fleet goes under the hammer

Kit to be sold off by sister firm to collapsed groundworks contractor
2 days ago

Government wields procurement stick on late payment

New rules would block slow payers from bidding on big public jobs
5 days ago

Hercules buys power line labour firm for £15.7m

Labour supply specialist snaps up Advantage NRG to tap booming electricity upgrade market
5 days ago

Universal bid to fast-track planning for theme park

Entertainment giant eyes 2026 start at Bedford site
5 days ago

Developer Breck to transform former Ibstock brick factory

Ravenhead works to become 300-home development
5 days ago

SP Energy Networks awards contracts worth £1.4bn

First round of awards under £5.4bn national electricity grid upgrade programme
6 days ago

Travelodge to convert Liverpool Street office building

Office-to-hotel conversion in City of London
5 days ago

Plans lodged for 1m sq ft City of London office

Barbican landmark building will reuse 40% of existing structure
5 days ago

PTSG acquires roofing specialist HD Sharman Group

Premier Technical Services Group expands building maintenance division
5 days ago

Balfour Beatty lands £833m carbon capture power plant job

Work to start later this year on Teesside carbon capture gas-fired power station
6 days ago

Svella agrees deal to save Cubby Construction

Solvent purchase set to save 214 jobs and protect supply chain
6 days ago

J Coffey holds line on margins despite £52m revenue slide

Pre-tax profit down 14% but firm eyes strong pipeline to bounce back
6 days ago

Consultants called up for £2.3bn NHS SBS panel reboot

Market asked for views ahead of next-gen procurement rollout
6 days ago

Hochtief launches new UK data centre division

German business model to be introduced for UK construction
7 days ago

Construction skills body launches with 100,000 worker target

Industry to work closer with Jobcentres to find new talent
6 days ago