Crest delays annual accounts as it reviews ‘appropriateness’ of £250m fire safety bill

Its remediation provision for the full year 2024 is expected to be around £250m, up from £145m reported in its half-year results, when only 45% of buildings had been assessed.

Crest completed a review of remediation work needed on 140 sites in June 2024, which in turn pushed up its remediation bill. 

At the time, the Surrey-based group explained that it had extended its review “in order to achieve a higher level of confidence in the adequacy of the cost estimates”.

In estimating this increase, the house builder explained that it had “applied its experience to date and the most plausible risk scenario to ensure it accounts for its probable liabilities and maintains a prudent and responsible approach to fire safety remediation provisions”.

The provision does not include any third-party recoveries or contributions that could offset these costs. The remediation programme is expected to be completed during 2029, which is in line with the government’s Remediation Acceleration Plan.

The firm said it expected its profit before tax for 2024 to be in the region of £22-29m.

Crest said: “With expected fire remediation costs fully provided for, the company believes this will provide greater clarity for the business going forward and allow the new management team to re-invigorate the business on firmer foundations focused on its three key priorities: optimising value from the high-quality land portfolio; building homes of exceptional quality efficiently; and delivering outstanding service to customers.”

In August last year, a merger proposal with the house builder and rival Bellway came to an end after the latter stepped back from a potential £650m deal.