Crest Nicholson PLC (LSE:CRST) shares slumped 9% as the housebuilder disappointed on even modest expectations with its half-year numbers.
House sales have fallen back since Easter due to the volatility in mortgage rates with the election causing more uncertainty, said the builder.
Interim revenue tumbled to £257 million from £282 million and as a result, half-year profits to the end of April dropped almost 90% to £2.6 million.
The group also doubled a provision for build-quality remedial work to £31.4 million from £15 million after reviewing all of its sites.
For the full year, Crest expects profits to be between £22 million and £29 million against previous market expectations of £35 million with the completions now forecast to be 1,900 against 2,000 previously.
The interim dividend was also slashed to 1p per share, from 5.5p last year.
New chief executive Martyn Clark takes over from current boss Peter Truscott tomorrow.
Broker Liberum pointed to comments that momentum has softened since Easter and the upcoming General Election is creating short-term volatility as it kept a hold rating and 210p share price target.
The shares are rated at a discount to the rest of the sector, but this merited added the broker.
Shares fell 19.4p to 221.4p.