The British housebuilder Crest Nicholson has issued a warning of a surprise loss this year, citing challenging trading conditions in a "subdued" property market. In an unscheduled trading update, the company revealed it would complete fewer homes than previously expected in the year ending 31 October, forecasting between 1,350 and 1,400 homes, down from an earlier estimate of 1,400 to 1,500.
Market Conditions
Crest Nicholson noted that conditions in the property market have been "more subdued" than anticipated during the summer months, a period typically characterized by lower activity as many potential buyers go on holiday. The company reported a slowdown in its sales rate over the past six weeks compared to the first half of the year, attributing this decline to "affordability constraints and competitive pricing" that have dampened demand.
Financial Outlook
The company now expects to report an operating loss of approximately £10 million, reversing its earlier forecast of a profit between £5 million and £10 million. This marks the third profit warning issued by Crest since April. Following the announcement, the company's share price fell by more than 10% on Thursday morning.