Crest Nicholson CEO to step down as profits drop 70%

Mr Truscott, who is now set to be replaced by Persimmon’s Martyn Clark later this year, said the year had been characterised by “significant uncertainty” in the housing sector, in contrast to the previous year’s “robust” market conditions.

He added: “While we have encountered challenging conditions, and performance was more disappointing than anticipated, the group remained profitable, concluding the year with a strong balance sheet which facilitated a dividend payout at the same level as FY22.”

Home completions for Crest Nicholson also fell by almost a quarter, with 2,020 completed in the financial year. The group completed 2,212 homes the year prior. Revenue also fell by 28 per cent, landing at £657.5m.

The firm said that following a comprehensive review, it had identified additional costs of £5.5m at its legacy and low-margin sites, including Brightwells Yard in Farnham.

This followed an announcement in November where the company revealed that it had recorded around £11m incremental build costs at its Farnham site within the year.

The Group said it had commenced a “thorough plan” to improve commercial processes and controls to mitigate the risk of future cost overruns.

Mr Trustcott said that the medium-term prospects for housing demand “remain positive”.

He added: “Recently there has been some positive macro trends with inflation and mortgage rates falling, which bode well for the housing sector. Although it is too early to gauge customer behaviour, we have been encouraged by an increase in customer interest levels and inquiries this calendar year.”