Shares in Crest Nicholson PLC (LSE:CRST) sank over 11% to 145p on a warning that adjusted profit before tax for its financial year to 31 October 2025 is expected to be at the low end of, or marginally below, its previous guidance.
The housebuilder, which had previously guided to profits between £28 million and £38 million, said housing market conditions had been subdued over the summer, exacerbated by recent uncertainty ahead of this month's Autumn Budget.
Full-year completions totalled 1,691 units, at the lower end of guidance, with open market sales units up 5% to 1,095. The sales rate for the final 13 weeks of the year was 0.45.
An anticipated £8 million inventory adjustment related to prior years is not expected to materially affect past earnings.
The company reported good progress on its transformation plan, Project Elevate, including the disposal of five land parcels and improvements in build quality, sales and customer satisfaction.
Net debt at year-end was towards the better end of the £40 million to £90 million guidance range, supported by land sales and tighter cost controls.
Chief executive officer Martyn Clark said he was encouraged by progress made across several areas and believes "these will convert to positive financial contributions as we progress further".
"While near-term market conditions are expected to remain challenging, our enhanced operating discipline, improved balance sheet and clear strategic direction provide a robust platform to navigate the current environment and deliver long-term, sustainable growth."