BUSINESS LIVE: PageGroup profits slip; Crest Nicholson costs rise; Audioboom returns to growth

Crest Nicholson has cut its annual profit forecast for the third time in six months, with the housebuilder citing higher costs related to certain legacy sites and an exceptional charge of £13million on a legal claim.

The company now expects full-year adjusted profit before tax of £41million, compared with the £45million to £50million range previously expected.

After a tough 2023 amid high inflation and elevated interest rates, Britain’s housing market is set for a boost as home loan rates start to fall back. However, broader economic worries could temper any recovery.

‘Although it is too early to gauge customer behaviour, we have been encouraged by an increase in customer interest levels and inquiries this calendar year,’ Crest Nicholson said in a statement.

Last week, peers Persimmon and Taylor Wimpey were cautiously optimistic about near-term prospects and tight-lipped on their profit outlook and build targets for this year.

Meanwhile, Vistry struck a more optimistic tone than its sector peers.

Recruitment slumped to a decade low in December and is expected to fall further this year.

Research showed hiring intentions among business leaders tumbled to the lowest level since August 2013 last month.

Unemployment is expected to grow and job vacancies fall over the next year, according to analysis by accountancy firm BDO. But bosses remain more optimistic about 2024 than last year.

PageGroup has trimmed its annual profit forecast, with the recruitment firm citing persistently longer hiring time and weak demand for permanent hiring amid low candidate and client confidence.

Group gross profits were down 8.9 per cent year-on-year to £237.3million in the fourth quarter with UK recenues slumping almost 20 per cent.

‘We produced a resilient performance in challenging market conditions. Despite the year-on-year decline in gross profit, we are still seeing good activity levels, albeit we did see a deterioration in job flow through Q4. However, these activity levels are not all converting into gross profit due to ongoing lower levels of candidate and client confidence.

‘Looking ahead, macro-economic uncertainty persists. However, we have a highly diversified and adaptable business model, a strong balance sheet, and our cost base is under continuous review and can be adjusted rapidly to match market conditions.

‘Given these fundamental strengths, we believe we will continue to perform well in these challenging markets, and we are confident in our ability to implement our new strategy driving the long-term profitability of the Group.

‘We are also seeing the benefits from our investments in innovation and technology, where Customer Connect is supporting productivity and enhancing customer experience, and Page Insights is providing real time data to inform business decisions.’