Key facts
- Vistry Group has slashed annual profit forecasts and reported a £661.3 million pre-tax loss for the first half of the year.
- The housebuilder is grappling with £600 million worth of unsold homes and has £220 million in unsold properties remaining.
- New CEO Adam Daniel is implementing a turnaround plan that includes exiting private sales in southeast England and reducing operations.
- The company plans to become a more focused builder of 12,000 homes annually.
- Vistry announced new cost savings of £50 million, alongside previous job cuts and a hiring freeze.
- The company's debt increased to £468.8 million from £293.1 million.
Vistry Group, one of the UK's largest housebuilders, has significantly reduced its annual profit expectations and reported a substantial pre-tax loss for the first half of the year. The company is contending with a large inventory of unsold homes, valued at £600 million, and has £220 million of properties still on its books. New chief executive Adam Daniel, who took the helm in April, has outlined a detailed turnaround strategy aimed at refocusing the business. This plan includes withdrawing from private sales in southeast England, simplifying operations, and aiming to build 12,000 homes annually. The company has also announced new cost-saving measures, including £50 million in savings on top of earlier redundancy programs and a hiring freeze, leading to a reduction in its workforce and the closure of regional offices.
The company's financial performance was impacted by a £475 million writedown and a £73 million provision for building safety works. Vistry blamed disappointing summer sales of private homes and issues with affordable housing deals, alongside cost inflation driven by global events. Despite these challenges, Vistry secured £350 million in government funding in August to build 3,000 affordable homes.