Crest Nicholson PLC (LSE:CRST) has cut its full-year profit and completions guidance after weaker summer demand and continued pricing pressure, although the housebuilder now expects year-end net debt to be materially lower than previously forecast.
The group said market conditions had been more subdued than expected, with affordability pressures and competitive pricing weighing on sales. Its net open market sales rate fell to 0.35 over the past six weeks, from 0.48 in the first half and 0.55 in the comparable period last year.
Crest Nicholson now expects full-year completions of between 1,350 and 1,400 homes, down from previous guidance of 1,400 to 1,500.
The company also expects to report an EBIT loss of around £10 million, compared with previous guidance for a profit of between £5 million and £10 million.
The downgrade reflects lower anticipated completions, weaker open-market demand and pricing pressure, particularly on bulk transactions, alongside additional net realisable value provisions on a small number of sites.
However, progress on the company’s cash optimisation programme has improved its debt outlook.
Year-end net debt is now expected to be between £70 million and £90 million, around £30 million better than previous guidance of £100 million to £120 million.
The improvement follows a further fire remediation recovery from a third party and an additional land disposal completed in the second half.
Chief executive Martyn Clark said: “While the trading backdrop has remained difficult through the summer, we are making tangible progress on the actions within our control.”
Crest Nicholson added that discussions with lenders over covenant amendments and future funding remain constructive, though the timetable is expected to slip.