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Crest Nicholson signals potential job cuts amid construction slowdown

Crest Nicholson employees

Housebuilder Crest Nicholson has hinted at potential job cuts as it grapples with a construction sector slowdown.

The company is planning to align its headcount with the expected output level in the next financial year. 

The move follows an August trading update warning of necessary overhead cost reductions. 

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CEO Peter Truscott said: “Given the challenging trading backdrop we have experienced this year, the group has acted decisively in streamlining its operations to align our cost base with the operating environment.

“These are difficult decisions to take but will ensure the group is well positioned to recover strongly as more supportive market conditions return.

“I would like to thank all Crest Nicholson colleagues for their efforts this year and their professionalism in dealing with the changes we have made.”

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The restructuring is estimated to cost around £500,000, with an expected adjusted pre-tax profit between £45 million and £50 million for the current financial year. 

Crest Nicholson says the housing market continues to be weak.

It says an average of 0.39 homes sold per week have been sold per outlet over the last 10 weeks. 

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"Housing market will remain challenging"

Mr Truscott said: “We expect the housing market will remain challenging as we head into 2024 with elevated interest rates remaining in place until inflation comes back down to its target level.

“In addition, the absence of any Government support for first-time buyers, coupled with higher borrowing costs, continues to impact affordability.

“However, there are reasons to be optimistic with year-on-year inflation now halved and real wage growth starting to be felt in households across the UK.

“We have acquired some excellent sites that are at advanced stages in the planning process, leaving us well positioned to trade in whatever market conditions emerge.”

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