Crest Nicholson facing costs of £15million after finding defects on four sites

Crest Nicholson has said that build defects found on four sites recently will see it face costs of up to £15million.
In a trading update released today, the housebuilder said that the problems had come to light after it had published its full-year results in January of this year.
The statement said: “The group has become aware of certain build defects predominantly on four sites that were completed prior to 2019 when the group closed its regeneration and London divisions. These sites will require remediation over the next three years at an estimated cost of up to £15million.”
As a result of the costs, Crest Nicholson has appointed third party consultants to assess the sites in question, as well as others finished prior to 2019, which it says will “provide greater assurance on the adequacy of current provisions”.
The statement went on to say that, over the past eight weeks, its sales per outlet per week had risen by 0.8 to 0.52, while its reservations are in line with expectations. The developer also expects to complete 1,800 to 2,000 this financial year, after building 2,020 in the previous year.
The newly discovered defects add to the additional costs accrued by previous problems which Crest Nicholson announced in its full-year trading update in January. During the previous financial year, Crest saw its Brightwells Yard scheme in Farnham incur an additional £11million in build costs after being faced with delays, and the housebuilder was also hit with a £13million charge from a legal claim as a result of a fire in a building built by the company in 2021.
The additional costs combined with what the company called “challenging trading conditions” saw Crest’s profit fall by two-thirds from £137.8million to £41.4million, with chief executive, Peter Truscott also announcing his decision to step down as the results were announced.
Crest Nicholson boss steps down after profits plummet
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