In a trading update for the annual shareholders meeting, housebuilder Crest Nicholson admitted to identifying more defects in their new build homes
New build defects have been revealed in Crest Nicholson’s latest trading update, three months after a fire remediation legal claim.
In a trading update for the shareholders’ annual general meeting taking place today [19 March], Crest Nicholson said: “Since the publication of the FY23 results [in January], 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.”
Remediation works will take three years to complete, “at an estimated cost of £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.”
Crest Nicholson operates across much of the south of England, as well as expanding into Yorkshire in recent years.
A legal claim was raised in January regarding damage caused by a fire on a previous Crest Nicholson build
In the year end results to 31 October 2023 released in early January of this year, Crest Nicholson said:
“In addition, the Group expects to recognise an exceptional charge of £13m (which is not cash in FY23) in respect of a legal claim that it has recently received relating to a low rise apartment scheme built by the Group which was damaged by fire in 2021. The Group is addressing this claim diligently and efficiently and will provide further details in our preliminary results.
“This is unrelated to the general fire remediation programme that the Group is currently delivering.”
The company also announced that it was anticipating to build fewer homes in the 2024 financial year, dropping from 2023’s target of 2,020 homes to between 1,800 and 2,000 homes.
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