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Crest Nicholson has warned pre-tax profit may be lower than expected and admitted around 50 jobs are at a risk under a restructuring plan.

In a trading update for the year to 31 October, the housebuilder said its adjusted pre-tax profit may be at or below its guidance range of £28m to £38m.

It said this reflects “a housing market that has remained subdued through the summer, and the continued uncertainty surrounding government tax policy ahead of the forthcoming budget”.

Crest said it was now consulting on closing one of its divisional offices and placing around 50 roles at risk of redundancy.

The review is part of an initiative called Project Elevate which was begun by new chief executive Martyn Clark after the firm made a loss of £144m last year.

He said: “A key focus area of our strategy is the balance sheet where we have tightened our grip on inventory and cost control.”

He said net debt for the year is at the “better end” of its guidance range of £40m to £90m.

The group said it has completed 1,691 units in the year, slightly below its guidance range of between 1,700 and 1,900 and down on the 2,020 completed the previous year.

Crest is due to announce its full-year results on 29 January.