Crest Nicholson: FY26E EBIT expected to be in lower half of previously guided range; conversations ongoing with lenders to amend covenants

Research evidence excerpt

Crest Nicholson: FY26E EBIT expected to be in lower half of previously guided range; conversations ongoing with lenders to amend covenants

C A Z E N O V E Europe Equity Research

16 July 2026

Crest Nicholson

FY26E EBIT expected to be in lower half of previously Neutral

guided range; conversations ongoing with lenders to CRST.L, CRST LN

amend covenants Price (15 Jul 26):74p

Price Target (Dec-27):80p

Our Take: Crest Nicholson reported H1 results with revenues of £197.6m, down European Building & Construction

21% y/y, and driven by completions falling from 739 to 584 as a result of and Infrastructure

challenging trading conditions, lower bulk sales and lower affordable completions. Zaim Beekawa AC

Adjusted gross profit was £13.9m, down 60.7% y/y, with a margin of 7% vs. last (44-20) 7134-4175

year’s level of 14.2%. Elsewhere, the company has stated that it is currently in zaim.beekawa@jpmorgan.com

productive and well-advanced discussions with its lenders to amend its covenants J.P. Morgan Securities plc

and ensure that it has an appropriate level of funding and liquidity going forward. Elodie Rall

Consequently, in order to allow further negotiations and associated (44-20) 7134-5911

elodie.rall@jpmorgan.com

documentation, the waiver of the interest cover covenant has been extended to 30 J.P. Morgan Securities plc

September 2026. The company has also noted that under the base case, once the Jamie Smallbone

existing waiver ends, the existing ICR covenant, which requires measurement at (44-20) 3493-7015

31 August 2026 and reporting by 30 September 2026, is not expected to be met. On jamie.smallbone@jpmorgan.com

FY guidance, management expects EBIT to be in the lower half of the previously J.P. Morgan Securities plc

guided £5m to £15m range.