Crest Nicholson has cut its earnings forecast for the second time in four months, now expecting a loss of about £10mn for the financial year ending October, down from a previous forecast of a £5mn to £10mn profit. The London-listed group also lowered its delivery target to 1,350 to 1,400 homes from 1,400 to 1,500. Shares fell 12 per cent in early trading.

The profit hit stems from muted demand and lower bulk‑sale prices to institutional buyers. “Market conditions have been more subdued than expected through the seasonally quieter summer trading period, with affordability constraints and competitive pricing continuing to weigh on open‑market sales rates,” the company said. Crest is still negotiating covenant amendments with lenders but warned of “some slippage in the current timetable.” Year‑end net debt is now projected at £70mn to £90mn, below the earlier £100mn to £120mn estimate, helped by a fire remediation recovery and a land disposal. The war in Iran has pushed energy and building costs higher, keeping interest rates elevated.