Crest Nicholson defers opening of third division on economic worries

17th Nov 2022 07:42

(Sharecast News) - UK house builder Crest Nicholson said it was deferring the opening of a third business division due to economic uncertainty, but added that that annual earnings would be within guidance.

In a trading update on Thursday, the company said it expected full-year adjusted pre-tax profit to be within a previously guided range of £135m-£140m. However, trading in recent weeks had been weaker, reflecting "increased economic uncertainty".

Forward sales at November 11 were 2,038 units and £526.2m in gross development value (GDV), compared with 2,502 units and £623.9m GDV a year earlier.

"Given the well-publicised economic conditions we believe it is the right decision to defer the planned opening of a third new division and adjust the pace of growth in our existing ones until a more stable environment returns," the company said.

Reporting by Frank Prenesti for Sharecast.com