Crest Nicholson (CRST) Trading update summary

Sales and Trading Environment

• Macroeconomic uncertainty, including the Middle East conflict, has weakened consumer confidence and increased interest rate expectations.

• Sales remain positive in some regions but have slowed overall, with reduced new inquiries, visitor levels, and a softer outlook for future activity.

• Open market reservations have held steady at around 0.6 since mid-January, with selling prices stable and no significant increase in discounting, incentives, or cancellations.

• Full-year unit volume guidance reduced to 1,400–1,500 units (from 1,550–1,700), with the order book at 1,106 units.

Land Sales and Inventory Management

• Only one land sale completed year-to-date, with buyer sentiment softening and fewer transactions expected.

• Land sale revenue guidance reduced to £40 million from £75–100 million, with minimal profit expected from remaining disposals.

• Focus on reducing finished plots inventory, especially completed apartment schemes, with about 60 apartments outstanding.

• Land buyers are more cautious, with some stepping back and others seeking lower prices, but there is no intention to sell land at a loss.

Financial Guidance and Cost Management

• EBIT guidance for the year is now £5–15 million, with interest costs expected at £15 million.

• Year-end net debt is forecast at £100–120 million, and discussions have begun with lenders for temporary covenant relaxation.

• No material new NRV provisions are expected, and cost-cutting actions include a recent division closure.

• Focus remains on cash generation, balance sheet strength, and tighter WIP controls.