Crest Nicholson reports first-half loss as liquidity measures and lender talks continue

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Crest Nicholson first-half loss

Highlights

Crest Nicholson reports an interim adjusted gross margin of 7.0%, operating loss of £11.9 million, and loss before tax of £17.3 million for H1.
Home completions reached 584 units, with management reducing land buying, aligning work in progress to lower sales expectations, and advancing lender negotiations and covenant amendments.
Project Elevate and tighter cash controls drive Crest Nicholson's operational reset amid ongoing UK housing sector weakness and efforts to enhance business resilience for future market recovery.

Interim results and financing discussions

According to London Stock Exchange, Crest Nicholson said in its interim results published through the London Stock Exchange that adjusted gross margin is 7.0%, while operating loss is 11.9 million pounds and loss before tax is 17.3 million pounds.

The adjusted operating loss for the half reflects low completions and increased NRV charges. Home completions total 584, made up of 414 open market homes, 107 affordable homes and 63 bulk or PRS units.

Chief executive Martyn Clark said the group is taking decisive action to preserve liquidity, reduce capital intensity and strengthen operational discipline. He said lender discussions are well advanced, temporary waivers have been agreed and the board remains focused on completing the covenant amendment process for parts of the revolving credit facility.

Operational reset and housing market implications

During the period, the company says it reduces land buying, continues to market non-core land for disposal, moderates the pace of new site starts and aligns work in progress with revised sales expectations for FY26 and FY27.

Crest Nicholson says Project Elevate remains central to its recovery plan, alongside tighter cash management and an advanced product strategy. The group also reports progress in fire remediation, sustainability work, technology-led customer experience improvements and construction quality, while retaining its 5-star HBF customer satisfaction rating.

The update points to continuing pressure in the UK housing sector as builders adjust output, land investment and financing arrangements to weaker near-term demand. Crest Nicholson says the actions are intended to create a more disciplined and resilient business positioned to benefit when market conditions improve.

Crest Nicholson’s FY26 profit outlook and covenant talks were the focus of our earlier report, as the builder warned that weak buyer enquiries and softer land sentiment were pushing expected operating profit to the lower end of its £5m–£15m range. The company also said its interest cover covenant waiver was extended to September 30, 2026, while further amendments remained under discussion to address ongoing balance-sheet and going-concern pressures.

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