Housebuilder reveals figure in interim results as firm returns to black
Crest Nicholson has said it has recovered more than 拢30m from its supply chain to cover the costs of a fire remediation programme.
The housebuilder said that its provision for the work, which covers close to 300 buildings, was a 鈥渂est estimate鈥� 拢223m.
But in its interim results, Crest said it has now got back over 拢32m with nearly 拢12m clawed back in the first half.
It said the recoveries were 鈥渋n respect of defective design and workmanship鈥� and added: 鈥淭he Group is continuing to review the recoverability of costs incurred from third parties where it has a contractual right of recourse.鈥�
Crest said it spent 拢34m on remediation in the first half, adding that the cost of the work had gone up by 拢2.4m.
The issue of who pays for fire safety remediation work is a growing one with Willmott Dixon last month saying that it has recovered over 拢20m to carry out fixes.
Yesterday, the firm said the amount if has spent on cladding repairs 鈥� as well as carrying out legal action 鈥� on a scheme in London has topped 拢50m.
Meanwhile, Crest said that a legal claim it is facing on a low-rise apartment block it built which was damaged by fire in 2021 is still ongoing.
It has made a 拢13m provision against the claim filed in 2023 with the freeholder now rebuilding the property. 鈥淭he claim and ultimate route to settlement is ongoing but the Group currently does not have a set timeline for when the matter will be concluded,鈥� Crest added.
Elsewhere, the firm returned to the black in its half-year results posting a pre-tax profit of 拢9.4m in the six months to April from a 拢31m pre-tax loss last time. Turnover was down 3% to 拢249.5m.
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