Crest Nicholson cuts outlook as UK housing demand weakens

Crest Nicholson has cut its full-year profit and completions guidance due to weaker summer demand and pricing pressure, though it now expects year-end net debt to be significantly lower than previously forecast. The housebuilder's net open market sales rate fell to 0.35 over the past six weeks, down from 0.48 in the first half and 0.55 a year earlier. It now expects completions of 1,350 to 1,400 homes, down from 1,400 to 1,500, and an EBIT loss of around £10 million versus prior guidance for a profit of £5 million to £10 million. Year-end net debt is now expected at £70 million to £90 million, about £30 million better than prior guidance, helped by a fire remediation recovery and land disposal. Chief executive Martyn Clark noted tangible progress on controllable actions, while lender discussions over covenants remain constructive.