House builder Crest Nicholson has postponed the release of its annual financial accounts as it reassesses its estimated £250m fire safety remediation costs for hundreds of its properties.

The FTSE 250 company announced that the publication of its revised financial data for the year ending 31 October has been pushed back to 4 February, instead of the previously scheduled 21 January. This delay follows a request from the company’s auditors for additional time to complete standard procedures and review the appropriateness of the fire remediation provision.

Crest stated:

“The company has made significant progress and is nearing completion of its assessment of all buildings within the scope of the self-remediation terms and is therefore now in a position to account for the expected costs for all 291 buildings.”

The total remediation provision for 2024 is expected to rise to around £250m, a substantial increase from the £145m reported in its half-year results, when only 45% of the affected buildings had been assessed. This jump follows a review of remediation work required on 140 sites, completed in June 2024. At that time, the Surrey-based company extended its review to ensure greater confidence in the adequacy of its cost estimates.

In explaining the increase, Crest commented 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 estimated provision does not include potential recoveries or contributions from third parties that could offset these costs. Crest’s remediation programme is expected to conclude in 2029, aligning with the government’s Remediation Acceleration Plan.

The company also shared that its profit before tax for 2024 is forecast to be in the range of £22-29m. Crest emphasised the strategic importance of this provision, stating:

“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.”

The announcement comes months after a proposed merger between Crest Nicholson and Bellway, valued at £650m, fell through when Bellway stepped back from the deal in August 2024.

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