Crest Nicholson Axes 50 Jobs to Focus on Mid-Market Homes
Crest Nicholson, the prominent house builder, has announced significant changes as part of its strategy to focus on mid-market homes. The company is undergoing a transformation in 2025, shifting away from volume-led operations towards higher-quality, mid-premium housing under the initiative named Project Elevate. Chief Executive Martyn Clark emphasized the aim to attract more resilient and less price-sensitive buyers, which would help improve long-term profit margins.
Financial Performance and Market Challenges
Despite facing tough market conditions in the latter half of the year, Crest Nicholson reported a pre-tax profit of £2.9 million. This marks a notable recovery from the previous year, which saw the company incur a staggering £146 million loss due to significant writedowns for fire safety issues. The adjusted pre-tax profit for the fiscal year ending 31 October 2025 rose to £27 million, up from £20 million, even as revenues held steady at £611 million.
- Completions decreased by 10% to 1,691 homes.
- Net debt increased to £38 million.
- Profitability slipped slightly, falling below the lower end of expectations.
Strategic Moves and Employment Impact
As part of its ongoing adjustments, Crest Nicholson merged its Yorkshire and Midlands divisions while closing the Chiltern division in December. This restructuring is expected to lead to approximately 50 job redundancies. Some restructuring costs may extend into 2026, indicating a thorough reevaluation of the company’s operations.
Focus on Mid-Market Homes
To align with its new direction, Crest Nicholson has completed the design of a mid-premium house type range. This new range will be utilized for all planning applications starting in January 2026 and is set to be produced by 2027.
Looking Ahead
The company reported subdued trading at the beginning of 2026, reflecting the softer market conditions of the previous months. However, early indicators since late December have shown a slight uptick in customer inquiries and improved sales rates as interest rates have started to ease.
- Forward order book: 848 units (as of late January).
- Continuing strategy to move away from bulk transactions.
Martyn Clark expressed confidence in the company’s medium-term trajectory, despite anticipating another transitional year in 2026. Crest Nicholson is committed to its transformation and aims to solidify its position in the mid-market housing sector.
