By Aby Jose Koilparambil and Suban Abdulla
(Reuters) -UK housebuilder Crest Nicholson (LON:CRST) on Tuesday posted a 70% slump in 2023 adjusted pretax profit while flagging market challenges ahead and announcing CEO Peter Truscott will retire this year.
Truscott, 61, who took over in 2019, will be replaced by Martyn Clarke, chief commercial officer at rival Persimmon (LON:PSN).
RBC Capital Markets analysts said that the challenge for Crest during the transition was to stay focused on execution, adding that a change of management may present an opportunity to adjust strategy.
Despite some optimism spurred by easing mortgage rates, Britain's housing sector has been slow to recover from last year's pronounced slowdown.
The housebuilder said it expects the housing market to remain challenging in 2024 and noted the planning environment could slow volume growth.
Forward sales - a key measure of near-term demand - stood at 1,732 units as of Jan. 19, down 14% year on year, it said.
CEO Truscott told analysts in a post-earnings call that the company was targeting to build 1,800-2,000 homes this fiscal year, compared with 2,020 units constructed in 2023.
Crest Nicholson's 2023 adjusted pre-tax profit of 41.4 million pounds ($52.8 million) was in line with its guidance last week but short of the 44 million expected by analysts on average, LSEG data showed.
Shares in the FTSE midcap builder were down 0.2% as of 1035 GMT.
Besides the challenges in the wider housing sector, Crest's 2023 profits were marred by cost issues at Farnham redevelopment scheme and other legacy sites, and an exceptional charge of 13 million pounds for a legal claim related to a 2021 fire.
($1 = 0.7848 pounds)