Crest Nicholson delays results as fire remedy costs mount
said on Tuesday that it was delaying publication of its full-year results amid a hike in fire safety provisions.
The FTSE 250 firm said results for the year to 31 October, due next week, would now be published on 4 February.
The decision was taken after the company's auditors, PwC, asked for more time to audit the appropriateness of Crest Nicholson's fire remediation provision as well as to complete "standard procedures".
The housebuilding sector is facing soaring costs as it looks to address historic safety issues in the wake of the 2017 Grenfell Tower fire, which killed 72 people. It has also faced criticism for failing to remedy unsafe buildings quickly enough.
Crest Nicholson said its assessment of all 291 tall buildings covered by the government's remediation agreement was nearing completion.
As a result, it now expects the total fire remediation provision to be between £245m and £255m, an overall jump of between £120m and £130m.
However, it maintained its most recent guidance for the 2024 year-end, with adjusted pre-tax profits set to come in around £22m.
Crest Nicholson said: "With expected fire remediation costs fully provided for, the company believes this will provide greater clarity for the business going forward, and allow the new management team to reinvigorate the business on firmer foundations focused on its three key priorities."
New chief executive Martyn Clark joined from rival Persimmon last June.
As at 0900 GMT, shares in the developer were up 2% at 160p.
Jefferies said: "While the increase in building safety provision knocks 15% from shareholder equity, we would argue this is more than reflected in Crest's valuation. Adjusting for the lower risk profile new disclosure brings, we leave our price target unchanged."
Jefferies, which has a 'buy' recommendation on the stock, currently has a price target of 185p.
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