Crest Nicholson secures breathing space from lenders as talks go on

Crest Nicholson said it has been given breathing space from its lenders as the housebuilder aims to shore up its finances after sinking into a loss.

The London-listed company said it had agreed to a further extension of a temporary waiver on an element of its loan agreement until November 30.

Crest told investors it remained in “constructive discussions” with lenders to “amend its covenants and ensure that it has the appropriate level of funding and liquidity going forwards”.

The company has been taking steps to reduce its debts at a faster pace while also seeking temporary relaxation of the terms of its agreements with lenders.

It is expecting debt levels to be between £70 million and £90 million by the end of the financial year – an improvement of about £30 million compared with previous expectations.

Crest reported a pre-tax loss of £35.2 million for the six months to the end of April and warned it was expecting to report an annual loss.

It comes as the housebuilder has flagged tougher conditions in the housing market and said it had been a quieter summer than it was expecting.

Consumer confidence has been squeezed by affordability constraints and took a hit in the spring as a result of wider political and economic uncertainty, the firm said.