Crest signals job cuts could be on the horizon as housing market slows
The business will ‘align headcount’ in its divisions to what their output is expected to be next year.
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Your support makes all the difference.Housebuilder Crest Nicholson has signalled it could start cutting jobs soon as a slowdown in the construction sector hit its business.
The company said that it would “align headcount” in its divisions to their “expected level of output” in the next financial year.
The announcement follows a trading update in August which warned that Crest would have to start reducing its overhead costs.
Chief executive 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.
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
“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.”
The company said that the restructuring would cost it around half a million pounds. Its adjusted pre-tax profit is expected to be between £45 million and £50 million this financial year.
Over the last 10 weeks, the average Crest outlet has sold 0.39 homes per week “reflecting the continued weakness in the housing market but on an upward trend,” the business said.
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.”