Housebuilder Vistry has warned over more job cuts as it looks to save another £50 million after slumping to a half-year loss of over £660 million and warning over full-year profits.
The group’s new boss Adam Daniels announced sweeping changes to turn around the troubled builder’s fortunes, including cutting its regional operations from 25 to 12 and leaving the private home sales market in the South East.
Further job losses and site closures
The overhaul will lead to further job losses among its workforce of around 4,150 as well as site closures, but the firm is not revealing how many will be affected.
Around 350 workers have already left the group since the summer including some departures under a recent voluntary redundancy programme, which delivered savings of £25 million earlier this year.
Half-year results and write-downs
The latest cost-cutting efforts come as Vistry reported pre-tax losses of £661.3 million for the six months to June 30, against profits of £40.9 million a year earlier after taking a £475 million write-down and another £73.2 million provision for building safety on high rise properties in the wake of the Grenfell Tower tragedy.
On an underlying basis, it reported pre-tax losses of £83.3 million against profits of £80.6 million a year earlier.
Full-year outlook and lender support
Vistry gave an alert over its full-year outlook, cutting its guidance to around £165 million from a previous forecast of £200 million, but this is excluding a £40 million hit from delayed deals and some £470 million in write-downs expected at the full-year stage.
The group looked to reassure that it did not expect to need to launch an investor cash-call and has the support of lenders, who have waived certain banking covenants due to the swingeing overhaul announced.
Mr Daniels said the actions will see the business become much smaller but more focused, slashing its new homes target to around 12,000 completions a year.
