The chief executive of Crest Nicholson is set to reveal a strategy overhaul next month after the housebuilder's pre-tax earnings more than halved last year. Martyn Clark, who joined a day after Crest's fifth profit warning in under a year in June, told investors he had conducted a 'comprehensive' review of the business, allowing him to 'craft a strategy' to 'optimise the company for sustainable growth' and boost profits.

He said Crest would update investors on the finding of the review in March, with plans to 'formulate our strategic focus for the year and beyond and our pathways to achieve our strategic goals'. It came as the Surrey-based housebuilder posted a 53 per cent slump in pre-tax profits to £22.4million for the 12 months to 31 October, in-line with guidance, and following a slower than expected fall in interest rates and 'subdued' consumer confidence.

The Bank of England is expected to resume the easing of monetary policy on Thursday, with markets forecasting a 25 basis point reduction to 4.5 per cent. Concerns about the potential for an inflationary resurgence slowed the pace of rate cuts last year and dampened expectations for future BoE cuts, thereby weighing on mortgage rates, consumer affordability and ultimately the performance of Britain's housebuilders.

Crest's statutory revenues slipped 6 per cent to £618.2million in 2024, as the group swung to an operating loss of £128.7million. Crest had delayed the publication of its results by two weeks after warning investors profits would likely come in at the bottom end of its guidance range to account for fire remediation costs. Boss Martyn Clark said '2025 will be a year of transition' for Crest Nicholson.

Dozens of housing developers have agreed to spend billions of pounds this decade on fire safety works in large buildings, including removing unsafe cladding. The potential costs have weighed on Crest Nicholson shares. The group on Tuesday confirmed it paid £249.3million in total fire remediation provisions for 2024, in-line with January estimates of £245million to £255million. Crest, which was the subject of an ultimately unsuccessful takeover bid from rival Bellway last year, also built 7 per cent fewer homes in 2024 at 1,873 units.

Net debt came in better than expected at £8.5million thanks to 'rigorous focus on cash management', though this swung form a net cash position of £64.9million last year. Clark said: 'Previous failures to identify and implement appropriate internal controls within the Group, particularly in relation to legacy operational issues on complex developments and legacy sites have significantly impacted our financial performance. We have taken steps to address these shortcomings.

'2025 will be a year of transition for Crest Nicholson as we implement and start to deliver on our new strategy for profitable growth. We are well-positioned with sufficient land with full planning permission to support our planned outlets and volumes. 'The broader economic landscape is showing tentative signs of stabilisation, even if at a more tempered pace than expected, providing a slightly more supportive environment for growth in 2025.

'A more stable and benign interest rate climate will help to restore confidence among both developers and homebuyers, reducing financial pressures and enabling greater investment in housing projects.'. Crest Nicholson shares were down 2.3 per cent to 171p in early trading, having fallen 18.3 per cent over the last 12 months and around 66 per cent over the last five years. Oli Creasey, property research analyst at Quilter Cheviot: 'Following a two-week delay to the announcement of Crest Nicholson's full year results, one may have thought trouble was brewing, but the statement contains little in the way of surprise, positive or negative.

'Of some concern to investors will be the statement from the Directors suggesting that in a 'severe but plausible' downside scenario, the group may breach the interest cover covenant on its debt. 'While not a good sign, it is a low probability scenario, and one where we would expect the company and lenders to work together to find a solution. 'Overall guidance is cautious, with the expectation that most of the recovery will come in the second half of the year.'.