Crest Nicholson (CRST) Trading update summary

Debt reduction and cash optimisation progress

• Net debt at year-end now expected between £70m and £90m, an improvement of about £30m from previous guidance due to successful cash optimisation and fire remediation recovery.

• Additional land disposal completed at expected value, with potential for one or two more transactions before year-end.

Trading and market conditions

• Market conditions remained subdued over the summer, with affordability constraints and competitive pricing impacting sales rates.

• Net open market sales rate over the last six weeks was 0.35, down from 0.48 in H1 and 0.55 in the same period last year.

• Pricing pressure is particularly strong in bulk sales, leading to a disciplined and selective approach.

Profit guidance and operational outlook

• Full-year completions now expected between 1,350 and 1,400, down from previous guidance of 1,400 to 1,500.

• EBIT now forecasted to be a loss of around £10m, compared to previous guidance of a £5m–£10m profit, due to lower completions and continued pricing pressure.

• Build cost inflation remains at 3–4%, mainly on materials.