LONDON (ShareCast) - (Sharecast News) - Shares in Crest Nicholson dropped by almost a tenth on Tuesday after the UK housebuilder said that full-year profits would miss previous guidance.
The company said that adjusted pre-tax profit for the 12 months to 31 October would come in at the "low end of, or marginally below" the guidance range of £28m-38m.

The downgrade was blamed on a subdued housing market and uncertainty surrounding government tax policy ahead of the Autumn Budget scheduled for next week.

The company said it was also having to make an "opening reserves adjustment" to inventory of £8m due to overstated profit in a development in its Eastern division over the past three years - though the impact on the adjusted bottom line is not expected to be material.

"While near-term market conditions are expected to remain challenging, our enhanced operating discipline, improved balance sheet and clear strategic direction provide a robust platform to navigate the current environment and deliver long-term, sustainable growth," said chief executive Martyn Clark.

Full-year volumes totalled 1,691 units, below the lower end of the 1,700-1,900 guidance, while. open market sales units increased 5% to 1,095.

The stock was 9.3% lower at 148.2p by 0903 GMT.

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