Auditor asks for more time to run rule over ‘appropriateness of fire remediation provision’
Crest Nicholson has said it will publish its 2024 results two weeks later than planned after being asked to delay the announcement by its auditors.
In a statement to the City this morning, the firm said its results for the year to 31 October 2024 will now come out on 4 February – and not next week on 21 January as planned.
It said the delay followed “a request from the Company’s auditors for additional time to complete standard procedures and audit the appropriateness of the fire remediation provision”.
It added: “The Company has made significant progress and is nearing completion of its assessment of all buildings within the scope of the Self Remediation Terms and is therefore now in a position to account for the expected costs for all 291 buildings.
“As a result, the total fire remediation provision at the FY24 year end is expected to be approximately £245m - £255m and compares to £145m at HY24 which was in respect of c.45% of buildings within scope. This is an overall increase in the future expected cost of remediation of £120m - £130m.
“In determining the quantum of the provision, the Company has applied its experience to date and the most plausible risk scenario to ensure it accounts for its probable liabilities and maintains a prudent and responsible approach to fire safety remediation provisions.
“The provision does not include any third-party recoveries or contributions that could offset these costs. The remediation programme is expected to be completed during FY29.”
Last August, rival housebuilder Bellway abandoned plans to buy Crest Nicholson which would have created a business with a turnover of £4.3bn. Bellway made three offers to buy the firm over several months last year.
In its last set of interim results for the six months to April 2024, Crest Nicholson made a £31m pre-tax loss on revenue down 9% to £257.5m, compared with a £28m profit the previous year.
No comments yet