Crest Nicholson (LSE:CRST) has lowered its forecast for year-end net debt following progress with its cash optimisation programme, while updating its expectations for full-year operating performance amid lower housing demand.
The housebuilder now expects year-end net debt of between £70 million and £90 million, compared with previous guidance of £100 million to £120 million.
The revised forecast reflects factors including a third-party recovery relating to fire remediation and additional land disposals. The company also cited cost controls and operational measures as part of its balance-sheet management programme.
FY26 EBIT Loss of Around £10 Million Expected
Crest Nicholson said trading during the summer was subdued, with affordability pressures and price competition affecting demand and margins. The company identified bulk sales as an area experiencing particularly high price competition.
As a result, the group has reduced its guidance for full-year home completions.
Crest Nicholson now expects to report an EBIT loss of approximately £10 million for FY26, compared with its previous expectation of an EBIT profit.
Discussions With Lenders Continue
The company said it remains in discussions with its lenders regarding amendments to its financial covenants and appropriate funding arrangements.
Those discussions are ongoing, and no completed agreement with lenders was included in the supplied information.
New House Types Planned From FY27
Crest Nicholson is also progressing plans to introduce new house types from FY27 as part of its strategy to increase its focus on the mid-premium segment of the residential market.
The company expects the changes to support build efficiency, its customer offering and margins over time. These outcomes remain management expectations and will depend in part on future market conditions.
Crest Nicholson Operations
Crest Nicholson Holdings is a UK housebuilder focused on residential development.
Its current strategy includes managing land and work-in-progress, controlling costs and developing a more consistent range of housing products as it increases its focus on the mid-premium segment of the market.
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