British housebuilder Crest Nicholson issues profit warning as sales fall

The company, which has struggled with its operational problems and low operating margins, said exceptional charges increased to £30.3m from the previously disclosed £15m.

It reported adjusted pre-tax profit of £2.6m for the six months ended April 30, compared with £21m a year ago.

Homebuilder Crest Nicholson warned that its annual profit would fall at least by a third and reported an 88% slump in half-year earnings, as the British housing sector faced slowing demand, sending its shares sharply lower in early trade.

Shares in the company, which have lagged the FTSE All-Share index over the past year, were trading about 12% lower at 212.40 pence. Sticky inflation has clouded the UK's monetary policy easing outlook, tempering expectations of a swift recovery in the housing market.