IN Brief:
- FY26 completions guidance has fallen to 1,350–1,400 homes from 1,400–1,500.
- Crest Nicholson now expects an EBIT loss of around £10m instead of a £5m–£10m profit.
- Year-end net debt guidance has improved to £70m–£90m as cash optimisation and asset disposals continue.
Crest Nicholson has cut its full-year completion guidance and now expects an EBIT loss of around £10 million after weaker summer trading put further pressure on open-market sales and pricing.
The housebuilder expects to complete between 1,350 and 1,400 homes in the year to 31 October 2026, down from previous guidance of 1,400 to 1,500. Its earlier expectation of £5 million to £10 million of EBIT profit has been replaced by the loss forecast, reflecting lower anticipated completions, weaker open-market demand, competitive pricing, and further net realisable value provisions on a small number of sites.
Trading slowed during the seasonally quieter summer period. Crest Nicholson recorded a net open-market sales rate of 0.35 during the latest six weeks, compared with 0.48 in the first half and 0.55 during the equivalent period last year, while affordability constraints continued to weigh on demand.
Pricing pressure has been particularly evident in bulk transactions, where the company says it is maintaining a selective approach. Build-cost inflation remains at around 3% to 4%, broadly in line with previous guidance and concentrated mainly in materials.
The weaker operating outlook sits alongside an improvement in expected debt. Crest Nicholson now forecasts year-end net debt of £70 million to £90 million, around £30 million better than the previous £100 million to £120 million range.
The improvement follows progress under its cash-optimisation programme, including an additional land disposal and a material fire-remediation recovery from a third party. The recovery will be treated as an exceptional profit item, and the group continues to expect one or two further land transactions before the financial year closes.
Operating performance and cash preservation are consequently moving in different directions. Sales and profit expectations have weakened, while disposals, remediation recoveries, and tighter capital management are reducing the forecast debt position more quickly than previously anticipated.
The company entered the summer from a difficult first half. For the six months to 30 April 2026 it reported a statutory operating loss of £26.2 million and a statutory loss before tax of £35.2 million, while net debt stood at £141.8 million at the half-year point.
Management had already responded by reducing land buying, marketing non-core land for disposal, moderating the pace of new site starts, and aligning work in progress with revised sales expectations. Those actions reduce capital requirements but also illustrate how housebuilders are having to adjust construction activity when reservation rates do not support previous volume plans.
Martyn Clark, Chief Executive of Crest Nicholson, said: “While the trading backdrop has remained difficult through the summer, we are making tangible progress on the actions within our control. Our cash optimisation programme is delivering with the expected year-end net debt position now materially better.”
Lender discussions remain unresolved. Crest Nicholson is seeking amendments to its covenants and says talks remain constructive, although the timetable has slipped and a further market update will be required.
The half-year accounts had already identified uncertainty around the covenant amendments and refinancing arrangements. The revised debt guidance therefore provides additional headroom, but it does not remove the dependence on completing the required discussions while operating results remain under pressure.
Project Elevate and the company’s revised housing range sit further ahead. New house types are expected to begin contributing from the end of FY27 as Crest Nicholson repositions towards the mid-premium segment, with management targeting greater product consistency, build efficiency, and margin improvement.
Those changes will not alter the immediate FY26 outcome. Current guidance points to fewer completions, weaker operating profit, continued build-cost inflation, and a sales market in which affordability and pricing remain significant constraints.
The revised figures also show how quickly weaker reservations flow back through live construction programmes. Lower sales rates affect site pacing, work in progress, land decisions, and the number of units capable of reaching legal completion within the financial year, leaving operational teams to adjust output while fixed project and corporate costs continue.
Crest Nicholson’s full-year results are due in January 2027. They will show whether the reduced completion range, approximately £10 million EBIT loss, and improved debt position held through the final weeks of the year, as well as how much further the group has progressed with covenant discussions, land sales, and its efforts to bring construction activity into line with current demand.
