Housebuilder Crest Nicholson's new boss warns on profits

Crest Nicholson’s new boss on Thursday said he will help the housebuilder cope with “volatile” market conditions, as he warned on profits.

Peter Truscott, who joined the FTSE 250 firm from Galliford Try last month, said: “We have found life rather tough of late. Consumer confidence has been a problem.”

Pre-tax profits for the year to October 31 are expected to be between £120 million and £130 million. Analysts had forecast £152 million.

The shares fell 30.2p, or more than 7%, to 379.2p.

Crest Nicholson was hit by a number of one-off costs. That included £10 million to reduce some prices in London where Brexit is deterring buyers. In addition, £17 million was put aside to make sure the company can deal with any implications from new government guidelines on cladding and fire risks. There has been heightened focus on fire risks following the tragic Grenfell blaze in 2017.

Truscott plans to generate value for shareholders through a “material” reduction in overheads and being more “selective” about selling land to rivals. He will provide details in January.

He said: "We are taking decisive action to ensure the business moves further and faster to make the most of the opportunities in front of it. While current market conditions remain uncertain, the prospects for Crest Nicholson over the medium term remain highly attractive."