The housebuilder Crest Nicholson issued its third profit warning in two years on Wednesday.
The company expects pre-tax profits to be between £170-190 million for the year to 31 October, which is below market expectations of £205 million.
“The usual autumn pick up in sales volumes has not been evident during September and October, with many customers put off decisions to buy whilst current political and economic uncertainties persist,” said Stephen Stone, Crest Nicholson’s executive chairman.
Shares fell by 14% in early trading.
The group have warned that demand is low amid Brexit uncertainties, with shares also falling at rival groups such as Berkeley (LON: BKG) and Persimmon (LON: PSN).
Demand has fallen so much that Crest Nicholson has closed its London office.
Demand for homes targeted at “aspirational” buyers have “suffered from a lack of confidence among discretionary buyers, who cite economic and political uncertainty as a disincentive to transact”.
The group’s board asked Stone to lead a new strategy which will “focus on shareholder returns by prioritising cash flow and dividends, maximising value in the land and development portfolio and improving operational efficiencies”.
The group’s finance director, Robert Allen, plans to leave the company after a short handover period.
Housebuilder Barratt (LON: BDEV) has seen a more positive set of results, with a strong start to its financial year.
David Thomas, Barratt’s chief executive, said: “The group has started the new financial year in a strong position, with a good sales rate, healthy forward order book and customer demand supported by an attractive lending environment.”
Shares in Crest Nicholson (LON: CRST) are trading down 4.84% at 307,40 (1253GMT).
