LONDON (ShareCast) - (Sharecast News) - UK housebuilder Crest Nicholson said it has seen a slight improvement in its sales performance since the start of the new year financial year, though tough conditions and one-off fire-safety charge over the 12 months to 31 October saw it swing to a substantial annual loss.
"Recent weeks have shown an ongoing incremental improvement in sales performance, supported by encouraging early indicators such as increased website visits and follow-up appointments," Crest Nicholson said.

"However, the slower than anticipated pace of interest rate reductions continues to weigh on the ability to convert indications of interest and is tempering the housing market recovery."

Annual results from the builder on Tuesday showed a 53.3% drop in adjusted pre-tax profit in the year to 31 October to £22.4m. A 7.3% decline in housing completions during the year resulted in a 6% drop in adjusted revenue to £618.2m, while the operating profit margin fell to 5.1% from 7.7%.

On a statutory basis, however, which includes exceptional items like a £127.3m net combustible materials charge - costs associated with fire safety defects - the company recorded a pre-tax loss of £143.7m, compared with a profit of £23.1m the year earlier.

Looking ahead, Crest Nicholson pointed to a pre-tax profit of between £28m and £38m for the current financial year.

"Early indicators, including increased customer interest and enquiries and sales rates in January, are encouraging, though we remain mindful of macroeconomic uncertainty and the pace of interest rate reductions and the impact this may have on 2025 profitability which remains below long term averages," said chief executive Martyn Clark.

Shares were 3.4% lower at 169.1p by 0822 GMT.

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