Housebuilder Crest Nicholson has reported a £51.2m loss before tax during the first half of the year, against the backdrop of Covid-19.
This compared with £64.4m profit during the same period in 2019.
Revenue shrunk by 52.2% to £240m during the six months ending April. Forward sales fell to £575.1m, from £636.9m, while home completions dropped 34.7% to 775.
The open-market average selling price was down by 6.7% to £344,000.
The housebuilder expects adjusted profit before tax for the year to be between £35m and £45m, compared with £121.1m before exceptional items in 2019.
Peter Truscott, chief executive of Crest Nicholson, said: “Before lockdown the business was performing well and trading in line with our expectations. We were continuing to recognise further improvements to margin in our current developments and short-term land portfolio.
“However, we cannot ignore the risks that Covid-19 presents to the UK housing market even if we cannot predict with certainty what the impact of those risks will be.
“Therefore, we have adapted our strategy by deferring the planned opening of an additional division and targeting further reductions in overheads. Taking decisive action now will ensure Crest Nicholson is able to flourish in whatever market conditions may emerge in the future including if the market quickly returns to growth.”
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