Vistry's Shares Drop as Housebuilder Forecasts £30m H1 Loss
The housebuilder said discounts, asset sales and other cash-generation actions cut first-half profit and are expected to support a recovery later in the year.
- Vistry shares tumbled 12% in early trading on Wednesday after the FTSE-250 listed group forecast a first-half loss of around £30 million, compared with profits of £40.9 million a year ago.
- New chief executive Adam Daniels initiated 'cash generation actions' to reduce debt, including deep pricing discounts, accelerated asset sales, and changes in site mix. These measures impacted current profitability but aim to reshape the company's balance sheet.
- Chief financial officer Tim Lawlor will leave in October to join a large privately-owned business in a different sector. Vistry also recently completed a voluntary redundancy programme affecting less than 5% of its 4,500 directly-employed workforce.
- Market conditions worsened between April and June due to 'increased uncertainty and lower customer confidence triggered by the Middle East conflict,' Vistry said. Higher financing costs and fewer housing association deals compounded the impact.
- Despite the loss, Vistry remains on track for underlying pre-tax profits of £200 million and forecasts a net cash position exceeding £100m by the end of 2026. The firm expects second-half improvement as current initiatives take hold.
12 Articles
12 Articles
Vistry angers market with £30m loss as new boss face shaky start
Vistry has attracted the ire of shareholders and analysts after it revealed a £30m first-half loss, as the firm stutters under its new chief executive. The FTSE 250 housebuilder delivered an unscheduled update to shareholders this morning, revealing that chief financial officer Tim Lawlor will quit in October after being headhunted by a “large privately-owned business”. The firm also revealed an expected £30m loss in the period. It said it has s…
Vistry's shares drop as housebuilder forecasts £30m H1 loss
Vistry has warned it expects to post a first-half loss of £30m, as profit took a hit from what the company termed “cash generation actions”, which included deep pricing discounts, accelerated asset sales, changes in site mix and changes in build rates. The FTSE-250 listed… The post Vistry’s shares drop as housebuilder forecasts £30m H1 loss appeared first on Construction News.
Evening Standard
Vistry shares plunge on warning over first-half losses
The housebuilder said it was now set to tumble to a loss of around £30 million in the first half of the year.
Vistry expects £30m loss after discounting unsold homes
Vistry Group has announced it expects to make a £30m loss in the first half of the year after implementing significant discounts to clear unsold housing stock. The company's shares fell 8% following the announcement, which also revealed the departure of its finance director. The post Vistry expects £30m loss after discounting unsold homes appeared first on PropertyWire.
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