Crest Nicholson boss steps down
THE chief executive of Crest Nicholson has announced plans to step down as the housebuilder announced a 70pc slump in profits.
Peter Truscott is leaving after more than four years in charge of the FTSE 250 company.
Mr Truscott, 61, said: “I joined about four and half years ago and at the time I said I want about five years and look at the five years I picked: the Covid pandemic, Ukraine war, build-cost inflation, interest rates. I’m looking forward to some free time and walking the dog.”
Meanwhile, Crest Nicholson confirmed a 70pc slump in pre-tax profit to £41m in the 12 months to October 2023. The housebuilder’s completions fell by around a quarter last year and revenues dropped by nearly 30pc to £657.5m.
Crest Nicholson was hit by cost overruns at its Brightwells Yard development in Farnham, Surrey, which went £5.5m over budget.
The project, which has residential, retail and leisure facilities, was delayed by planning issues and hit by inflation in building material costs.
The company also took a £13m charge related to a block of flats it built that was severely damaged by a fire in 2021. M&G is bringing a legal action over a blaze at the Reading building, the Financial Times reported. M&G was contacted for comment.
Crest Nicholson suffered a turbulent 2023, issuing three profit warnings in six months as high interest rates hammered the business. Interest rates, which typically dictate the strength of the housing market, are expected to fall this year and Mr Truscott said he believed 2024 would be a better year.
He said: “Buyers and sellers are sitting on the fence, but we expect them to gradually return.”
Mr Truscott will be replaced by Martyn Clark, who is currently chief commercial officer at rival housebuilder Persimmon. Mr Truscott will remain until Mr Clark joins later in the year.
Incoming chief executive Mr Clark said he was looking forward to “the next phase of the group’s growth”.