Housebuilder Crest Nicholson has issued a profit warning and lowered its sales and revenue expectations in the face of increased macro-uncertainty amid the war in the Middle East.
In a trading update, the group said it expected fewer land sales, with land-sale revenue for the financial year now forecast to stand at £40m, down from the £75 to £100m previously forecast.
While its sales performance has been in line with expectations so far this year, it said it is taking a “more cautious view” of sales for the rest of the year, reducing its expectations from between 1,550 and 1,700 homes to a range of just 1,400 to 1,500 homes.
The update said trading in the Midlands, South West and Eastern division remains positive, but warned of a reduction in new enquiries and visitor levels.
The group said sentiment among prospective land purchasers has become more cautious in recent weeks, reducing their engagement in the bidding processes and increasing their reluctance to trade at market values.
While the update said the firm “remains confident that it is well positioned to navigate the economic uncertainty”, as a consequence of “lower expected profitability”, it is in the early stages of seeking temporary banking covenant relaxation with its lenders.
Chief executive Martyn Clark said it is “increasingly clear that the current macroeconomic uncertainty is contributing to the prospect of a more prolonged higher interest rate environment, renewed cost pressures and a deterioration in consumer confidence”.
He added: “In the near term, the right and prudent course of action is to adapt quickly to the challenges presented by the current trading environment and focus on prioritising cash generation and optimising our balance-sheet position.
“We are doing what needs to be done to navigate this uncertainty to best position the business to deliver the attractive medium-term opportunity.”
The update comes after Crest Nicholson closed a divisional office, axing around 50 jobs, at the start of the year after its profits also fell below guidance in its full-year results to the end of October 2025.
A recent RICS UK residential survey revealed that demand from prospective buyers has weakened notably since March 2025 as a result of heightened geopolitical uncertainty, linked to the Middle East conflict.
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