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Finance

UK's Crest Nicholson sees annual profit at lower end of forecast range

Published by Global Banking & Finance Review

Posted on July 16, 2026

1 min read

· Last updated: July 16, 2026

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Crest Nicholson Forecasts Lower End of Annual Profit Amid Economic Uncertainty

Company Outlook and Financial Updates

Profit Forecast and Market Conditions

July 16 (Reuters) - British homebuilder Crest Nicholson said on Thursday it expects annual operating profit to come in at the lower end of its previously forecast range, amid subdued housing demand and challenging economic conditions.

Fiscal 2026 Guidance

The company expects fiscal 2026 operating profit at the lower end of previously guided range of £5 million to £15 million ($6.77 million-$20.30 million), as economic and geopolitical uncertainty weigh on customer enquiries, visitor levels and sentiment in land market.

Covenant Waiver and Ongoing Discussions

Crest Nicholson also said that the waiver of its interest cover covenant has been extended to September 30, 2026, and discussions to amend its covenants remain ongoing, after it earlier warned of a going concern risk if covenants were not relaxed.

(Reporting by Simone Lobo in Bengaluru; Editing by Nivedita Bhattacharjee and Eileen Soreng)

Key Takeaways

  • Operating profit forecast remains at £5m–£15m, but now expected at lower end due to subdued housing demand and land market challenges
  • Interest cover covenant waiver extended to September 30, 2026, as discussions with lenders continue amid going-concern concerns
  • The revised forecast reflects broader macroeconomic and geopolitical pressures, including higher borrowing costs and investor caution

Frequently Asked Questions

Why is Crest Nicholson expecting lower annual profits?
Crest Nicholson cites subdued housing demand and challenging economic conditions as primary reasons for expecting annual profits at the lower end of its forecast range.
Has Crest Nicholson made any changes to its financial covenants?
Yes, Crest Nicholson's waiver of its interest cover covenant has been extended to September 30, 2026, with further discussions to amend covenants ongoing.
What risk did Crest Nicholson previously warn about?
Crest Nicholson previously warned of a going concern risk if its covenants were not relaxed.

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