Last October Crest warned that falling sales and historic contract issues would see 2023 profits at £50m rather than £74m as forecast at the half-year.
That has now been dropped again to £41m following further issues at its loss-making mixed-use scheme Brightwells Yard in Farnham and other sites.
It said: “The Group has subsequently conducted a comprehensive review of the costs associated with the work required on this project as well as our other legacy sites. Consequently, further additional costs have been identified which will impact FY23 and the Group now expects the Adjusted Profit Before Tax to be £41m for FY23.”
Crest also revealed it was facing a £13m claim on one of its schemes hit by fire damage.
It added: “In addition, the Group expects to recognise an exceptional charge of £13m (which is not cash in FY23) in respect of a legal claim that it has recently received relating to a low rise apartment scheme built by the Group which was damaged by fire in 2021.
“The Group is addressing this claim diligently and efficiently and will provide further details in our preliminary results. This is unrelated to the general fire remediation programme that the Group is currently delivering.”
Full year results will be published next week.
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