Vistry, the housebuilder, has warned it expects to slump to a half-year loss of around £30 million, sending shares down as much as 12% in early trading on Wednesday. This compares with a profit of £40.9 million in the same period last year.
Loss Driven by Tough Trading and CEO Overhaul
The group attributed the expected loss to difficult trading conditions and the impact of “cash generation actions” implemented by new chief executive Adam Daniels. These include incentives, discounts, and an acceleration of asset sales. Vistry has also completed a voluntary redundancy programme, which saw less than 5% of its 4,500 directly-employed workforce leave, delivering savings of £25 million.
According to the company, further cost cuts are on the way as part of the overhaul led by Mr Daniels. The firm stated: “In addition, we expect to identify and achieve further efficiencies as we conclude the balance of the CEO review and organise the business in the right structure to achieve our future goals. The cost savings that are implemented this year will generate a full year benefit in 2027.”
CFO Departure and Market Outlook
Vistry also announced the departure of chief financial officer Tim Lawlor, who will leave in October to join a “large privately-owned business in a different sector”. The builder said market conditions worsened between April and June due to “increased uncertainty and lower customer confidence triggered by the Middle East conflict”.
The company cautioned: “Although we would welcome some demand-side stimulus we are not anticipating a significant change in open market conditions in the second half, or in early 2027.” Despite the first-half loss, Vistry said it remains on track with expectations for underlying pre-tax profits of £200 million – excluding any impacts from the review. Mr Daniels will outline the results of the review at half-year results in September.
