Jobs go as Crest Nicholson returns to profit and plans shift towards mid-market homes

Crest Nicholson has returned to profit in what it has described as a “year of transition”, following cuts to divisions and redundancies.

The housebuilder in its annual results, posted pre-tax profit of £2.9m, compared to a loss of £145.8m the previous year.

However, adjusted operating profit was £26.5m, which was lower than the £28m to £38m range the housebuilder had previously indicated it would achieve in the year.

Crest Nicholson said its figure had been impacted by “weaker market conditions in the second half of the year”.

The group’s turnover fell slightly from £618m to £611m while its completions dropped by nearly 10% from 1,873 to 1,691 homes.

The firm confirmed it closed its Chiltern division last month and merged its Yorkshire and Midlands arms. It made 50 roles redundant as a result of the changes, which were trailed in November and had been made to “maximise productivity”.

The changes are part of the housebuilder’s ongoing Project Elevate restructuring programme launched following the £145m loss the previous year amid increased building safety costs.

It said: “These changes were strategically necessary to create a more focused and efficient operating model, and will help reduce our overhead costs going forward.”

Crest also said it is reconfiguring its land bank to enable it to shift its focus to the ‘mid-premium market’, which it believed is steadier with firmer pricing and “less price-sensitive buyers”.

It added: “This housing segment has consistently demonstrated greater resilience and stronger performance than the traditional volume-led housebuilding market, particularly through periods of economic uncertainty.”

Crest Nicholson placed 13th in Building’s annual Top 50 Housebuilders table, which ranks firms by turnover.