Vistry avoids another profit warning but cautions on uncertainty ahead

Underlying pre-tax profits are expected to slump by 40 per cent at around £250m for the year, down from £419.1m in 2023.

Shares, which have tumbled in the past six months on the slew of profit warnings, rebounded by as much as 14 per cent on Wednesday.

But Vistry, which builds affordable housing and works with local authorities, said there is uncertainty over the outlook for the sector.

It said a “recovery in consumer confidence” is key to sales growth in the private market, while it is also waiting for the outcome of the Government’s upcoming spending review.

Vistry added: “For 2025 we are assuming open market demand to be at a similar level to 2024.

“The group launched a new national consumer marketing campaign on Boxing Day and is pleased to have seen an uplift in inquiries across the business over the past couple of weeks.”

Vistry – formerly known as Bovis Homes Group – is expecting “low single-digit” build cost inflation over 2025, while it is facing an annual cost of £7m from the recent Budget move to increase national insurance contributions.

During the period, Vistry also underwent an operational review.

The group said: “A review of the group's operational structure has been completed with the objective of reducing reporting lines and enabling the CEO to get closer to the business whilst ensuring the group is well positioned to execute upon its Partnerships strategy.

“The group's divisional structure has been consolidated from six divisions into three larger divisions, each being led by an executive chair reporting directly to the CEO. The three executive chairs are all former divisional chairs and have extensive partnerships experience.”

Issues in the group’s South Division also affected the firm during the year.

A statement from Vistry said: “On 8 October 2024, the group reported it had become aware of cost issues identified in its South Division. An update on November 8 2024, following both an independent and internal review process, stated that the expected impact to adjusted profit before tax from the adjustments identified in the review in the South Division would total £105m in FY24, £50m in FY25 and £10m beyond FY25.

“As part of the process all sites across the group's other five divisions were reviewed and no systemic issues were found outside the South Division.”