Chief executive officer at Crest Nicholson, Peter Truscott, has announced that he is to retire, as profits at the firm fell by 70% year-on-year.

In its full-year results, the housebuilder recorded profits of £41.1m in the year to the end of October 2023, down from £137.8m in the year previous.

This was lower than the £46.8m that analysts had forecast, but Crest put this down to an extra £5.5m charge to its books after a review of some of its poorer-performing sites.

As part of the announcement, Truscott said that he will leave the housebuilder’s board after five years at the firm and will retire, with the current chief commercial officer at Persimmon, Martyn Clark, set to replace him.

Truscott said: "Recently there has been some positive macro trends with inflation and mortgage rates falling, which bode well for the housing sector. 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. However, we remain mindful of ongoing uncertainties within the broader economy.

"The medium-term prospects for housing demand remain positive with the structural under supply of housing, however the challenging planning environment is likely to slow volume growth in the sector. We have acquired some excellent sites that are at advanced stages in the planning process, and have a strong strategic land pipeline, leaving us well positioned for the future when market conditions improve."

Revenue at Crest Nicholson also fell by 28% in the same period to £657.5m, which the firm said reflects the "weakness in the housing market", with home completions also falling by 26% from 2,734 in 2022 to 2,020 in 2023.

As part of the results, there was an exceptional charge of £13m, which was recorded for a legal claim the group received in relation to a fire at one of its low-rise apartment blocks in 2021.

Head of money and markets at Hargreaves Lansdown, Susannah Streeter, said: "Crest Nicholson has set its sights on an improved outlook in the UK, hoping to leave a disappointing 2023 behind it. Adjusted pre-tax profits came in sharply lower, at £41.1m, compared with £137.8m a year earlier. Investors had been warned though, with the company having issued three profit warnings in just six months.

"However, with other housebuilders making progress as hopes have risen that interest rate cuts could be in sight there had been hopes of a slightly better final number. But there was little concrete to smooth over the cracks that have appeared for Crest Nicholson."

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