Crest Nicholson hit by more build defect problems

Crest Nicholson has discovered build defects on another four completed sites which could cost the company £15m.

The house builder revealed another set of legacy contract problems in a trading update to the city this morning.

It said: “Since the publication of the FY23 results, 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 £15m. 

“As a result, the Board has decided to appoint third party consultants to provide greater assurance on the adequacy of current provisions around these and other sites completed prior to 2019. A further update will be provided at the Group’s interim results in June.”

Results released in January for 2023 showed a drop in pre tax profits to £41.4m from £137.8 as legacy build problems dogged the company.

Generated by Feedzy