Housebuilder Vistry has flagged further redundancies as it seeks to save an additional £50 million, following a first-half loss of more than £660 million and a warning over full-year profits.
The group's newly appointed chief executive Adam Daniels unveiled sweeping measures to reverse the struggling builder's fortunes, including slashing its regional operations from 25 to 12 and withdrawing from the private homes sales market in the South East.
Restructuring and job losses
The restructuring will result in additional job losses across its workforce of approximately 4,150, as well as site closures, though the firm has not disclosed the precise number of roles at risk.
Around 350 employees have already departed the group since the summer, including some who left under a recent voluntary redundancy scheme that generated savings of £25 million earlier this year.
Financial results and outlook
The latest round of cost-cutting comes as Vistry posted pre-tax losses of £661.3 million for the six months to June 30, compared with profits of £40.9 million in the same period a year earlier, after absorbing a £475 million write-down and a further £73.2 million provision for building safety on high-rise properties in the wake of the Grenfell Tower tragedy.
On an underlying basis, the firm recorded pre-tax losses of £83.3 million, against profits of £80.6 million a year earlier.
Vistry also issued a warning over its full-year outlook, trimming its guidance to around £165 million from a previous forecast of £200 million, though this excludes a £40 million impact from delayed deals and approximately £470 million in write-downs anticipated at the full-year stage. The group moved to reassure investors that it did not anticipate needing to launch a cash call and has secured the backing of lenders, who have waived certain banking covenants in light of the sweeping restructuring announced.
Chief executive's response
Mr Daniels said the measures – which follow a comprehensive review initiated after he took the helm in April – will see the business become considerably leaner but more focused, cutting its new homes target to approximately 12,000 completions annually.
The group said it would have a "greater focus on regions and site profiles where the mixed-tenure model performs best, with increased exposure to the North, Midlands and West".
Mr Daniels added: "Whilst the challenges we have experienced in the last couple of years have been exacerbated by market headwinds, the review has also made clear that our execution, regional discipline and capital allocation have not been consistent enough."
"These issues can be fixed, and we are taking the necessary steps to ensure the strong performance we have seen across many of our sites is replicated across the group as a whole."
"We are committed to entering 2027 on the right footing and following the actions taken, do not anticipate any need to raise equity."
