Crest Nicholson is a UK housebuilder that in 2025 set out to move up-market, lift margins and cut debt. By autumn 2026 it was making losses, net debt had reached £142m at April, and it was running on waivers of a bank covenant (a lender-set financial test). The shares fell from about 150p in February 2026 to about 59p in October.
Mid-premium homes, built on a large land bank
Crest Nicholson builds and sells houses and flats across England. It sells to private buyers (open market), to investors who rent out homes (bulk or PRS), and to housing providers (affordable). It completed 1,691 homes in the year to October 2025, and about 1,100 of them were open market.
It trades through regional divisions, including Eastern and a merged Midlands and Yorkshire. It also holds strategic land, which it promotes through the planning system and sells on or builds out. It also sells some land that it could not build on for several years. In 2025 management repositioned the group from volume builder to 'mid-premium': well-designed homes in sought-after areas, with a designer upgrade range called Arteva. 29 Jan 2026 16 Jul 2026 12 Jun 2025 23 Jan 2024
Cost overruns, a legal claim and a new chief executive
Housing demand fell in 2023. Revenue dropped 28% to £658m and completions fell to 2,020 homes. Cost overruns at the Brightwells Yard scheme in Farnham added about £11m of extra build cost. A £13m legal claim followed over a fire-damaged apartment block.
In 2024 a review of completed sites led to a £31.4m one-off charge. The dividend fell from 17.0p to 2.2p for the year. Peter Truscott retired, and Martyn Clark became chief executive on 3 June 2024. 23 Jan 2024 15 Jan 2024 13 Jun 2024 23 Jan 2024 8 Apr 2024 4 Feb 2025
“Nevertheless, this has been a very tough and disappointing year for the business.” 4 Feb 2025
Bellway came, then walked away
In June 2024 Bellway, a larger housebuilder, proposed an all-share takeover. The board rejected a 253p-a-share proposal and later received a revised 273p proposal. It also declined to engage with an unsolicited approach from Avant Homes while the Bellway process ran.
On 13 August 2024 Bellway said it would not make an offer. The shares reached 266p in July 2024 and were 205p a month later. 14 Jun 2024 5 Jul 2024 10 Jul 2024 13 Aug 2024
A £245m fire bill, then a reset plan
In January 2025 the fire-safety provision for 291 buildings rose to £245m-£255m, from £145m at the half-year. The company said the work should finish in FY29 and be funded from its own cash flow. The provision pushed the FY24 statutory loss before tax to £144m.
On 20 March 2025 a Capital Markets Day set FY29 targets: 2,300 or more completions, gross margin of 20% or more and return on capital employed of 13% or more. It also set overheads at about 7% of revenue by FY27. The plan, called Project Elevate, rests on eight workstreams. It cuts bulk deals, sells land and reduces stock.
FY25 delivered part of this. Inventory fell £73m, net debt of £38m beat guidance and the £250m bank facility was renewed to October 2029. Adjusted profit before tax of £26.5m was just below the £28m-£38m guidance range. A £8.3m reserves adjustment also showed profit had been overstated on one Eastern division development between 2022 and 2024. 14 Jan 2025 4 Feb 2025 20 Mar 2025 29 Jan 2026 18 Nov 2025
2026: demand weakens and the banks step in
In January 2026 the company guided to adjusted profit before tax of £32m-£40m. On 21 April it cut FY26 volume guidance to 1,400-1,500 homes (from 1,550-1,700) and land sales to about £40m (from £75m-£100m). It guided to EBIT (operating profit) of £5m-£15m. Management cited macroeconomic uncertainty and weaker demand. The shares had already fallen from 152p in February to 101p in March, and the company has not given a reason for that fall.
Half-year results slipped from June to 16 July pending talks with lenders. They showed gross margin of 7.0% against 14.2% a year earlier, an operating loss of £26m and net debt of £142m. On 3 September it forecast a full-year EBIT loss of about £10m and 1,350-1,400 completions. The new mid-premium house types are now due to contribute from the end of FY27. 21 Apr 2026 19 May 2026 16 Jul 2026 3 Sep 2026
Balance sheet gains were not enough to protect profit
Cash discipline worked in 2025: inventory, land creditors and net debt all improved. Margin did not follow, because the plan relied on a recovering market and on new homes that only arrive from 2027. When sales weakened, weak margins and charges on unsold completed apartments led to losses.
The 2024-25 guidance was met or nearly met. The 2026 guidance was cut twice in five months. The reserves adjustment and the large fire provision also show how much legacy exposure sat on the balance sheet. 29 Jan 2026 16 Jul 2026 21 Apr 2026 3 Sep 2026
A new team, small share purchases and a changing board
Martyn Clark (chief executive) and Bill Floydd (finance director since November 2023) set the 2025 strategy. Both buy shares monthly through the employee share plan in small amounts. The CEO also received a long-term incentive award of 562,073 shares in March 2026.
On the board, Gillian Kent joined as a non-executive director on 1 November 2025. Octavia Morley is leaving at the March 2026 AGM, and Louise Hardy will step down in March 2027. Aidan de Brunner joined on 1 October 2026. Among shareholders, Aberforth holds about 12%, FIL 11%, Janus Henderson 10% and Richard Griffiths 6%. The Wellcome Trust sold its stake. 13 Oct 2023 13 Nov 2023 28 Oct 2025 30 Sep 2026 26 Mar 2026 3 Sep 2025
Losses, higher debt and waivers
The bank facility is a £250m revolving credit line to October 2029. The company also has £65m of loan notes, of which £50m is due in August 2027. Lenders have waived the interest cover test (profit against interest costs). The waiver now runs to 30 November 2026 while an amended covenant is documented.
Net debt was £142m at April, or £210m including land creditors. Contracted land sales of about £50m should settle in the second half and bring year-end net debt down to a forecast £70m-£90m. The company says it has cut land buying, slowed new site starts and is selling finished apartments. 16 Jul 2026 3 Sep 2026 30 Sep 2026
“Our lending group remains supportive, and we are in constructive discussions with them to amend certain parts of the Revolving Credit Facility.” 16 Jul 2026
Covenant deal first, new house types from FY27
Management's stated priorities are a covenant amendment, cash and liquidity, cost control and Project Elevate. It reports build cost inflation of about 3-4%. Planning applications for the new house types are due in FY26, with rollout expected in the first half of FY27. The company has not said whether the FY29 targets set in March 2025 still stand.
On fire safety, the company says it is substantially on track for the Government's remediation targets. It reports cumulative recoveries from third parties of over £35m. Management says long-term demand is supported by a shortage of homes, but customer enquiries have softened since April. Six-week open market sales rates to early September were 0.35 per outlet per week, against 0.48 in the first half. 16 Jul 2026 3 Sep 2026 20 Mar 2025 21 Apr 2026
Written by AI from Crest Nicholson Holdings's own announcements since Oct 2023 · every paragraph links to its sources