Surrey-based house builder Crest Nicholson reported a £144m pre-tax loss for last year after incoming chief executive Martyn Clark delivered a root and branch review of the ailing business
He said the house builder was working hard to draw a line under the expected cost of future fire remediation works and had also revised up site completion costs at two now-closed divisions.Total exceptional charges reported for the year to October 2024 soared to £166m, including an extra £132m to replace combustible materials and £25m for other remedial work at completed sites.
It brings Crest’s total provision so far for safety remediation works to £249m.He said the latest big provisions followed intensive work to assess all future risks with all building surveys expected to complete this summer.
Crest spent £33m last year across several buildings requiring further investigative costs and remediation works, including balcony and cladding-related works.
Clark also revealed that Crest had identified that controls were not operating effectively at the now-closed London and Regeneration divisions.
The control weaknesses related to the divisions’ management and forecasting of build costs and margin.
After a review Crest has made a £25m further writedown to complete defects at four sites.
Clark said: “My initial focus has been on implementing early operational changes at pace, and ensuring we have a solid foundation for the years ahead. “As part of that, I have reviewed the existing executive committee to ensure we have the right breadth of expertise and capability, in order to enhance decision-making, strengthen internal controls, address operational challenges and drive future strategic priorities. “I have also made considerable progress in reviewing our strategy and defining my long-term vision for Crest Nicholson to re-invigorate the business for growth.”
He added: “2025 will be a year of transition for Crest Nicholson as we implement and start to deliver on our new strategy for profitable growth.
“We are well-positioned with sufficient land with full planning permission to support our planned outlets and volumes.”
Over last year revenue slipped 6% to £618m, with pre-exceptional operating profit down 38% to £31m.
“We are well-positioned with sufficient land with full planning permission to support our planned outlets and volumes.”