News: TRM UPDATE 2-UK homebuilder Crest Nicholson CEO to step down after tough 2023

(Recasts, adds CEO retirement in paragraph 1, shares in paragraph 7, analysts' comment in paragraph 9)

UK housebuilder Crest Nicholson CRST.L 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 PSN.L .

Despite some optimism spurred by easing mortgage rates, Britain's housing sector has been slow to recover from last year's pronounced slowdown.

The company said in 2024 it expects the housing market to remain challenging 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.

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 .FTMC builder were up 2.5% as of 0934 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.

"Given the valuation discount to the sector, the key issue for the shares is how the group can reach sector average margins and returns over the medium term," Investec analysts wrote in a note.

($1 = 0.7848 pounds)