Vistry shares slide after Allianz ‘cuts insurance cover’

Vistry's shares plummeted nearly eight percent on Monday morning following rumors that insurance provider Allianz Trade had reduced its coverage for the housebuilder's suppliers. This news sent the stock price plummeting to 261p, marking a loss of over half Vistry's market value for the year. The Financial Times reported on Saturday that Allianz Trade may cut its coverage up to 70 percent, potentially jeopardizing Vistry's cash flow.

The company had previously tried to bolster its balance sheet by selling off land. Despite denying that any suppliers had withdrawn trade following the report, Vistry's spokesman stated that credit insurers are still providing substantial coverage for the supply chain. Vistry's boss, Duncan Cooper, sparked concerns over the company's credit situation last week when he mentioned that cover might have been pulled from a major housebuilder.

Vistry's shares dipped around 10 percent after Cooper's comments, and the decline continued into the start of this week. The company's troubles have drawn attention from short-sellers as it tries to regain direction after the sudden departure of chief executive Greg Fitzgerald. New CEO Adam Daniels offered investors a strategic review ahead of time, but the announcement revealed a projected pre-tax loss of £30 million for the first half of the year, prompting a further share price decline.

Daniels, a former Vistry employee, sought to reassure investors with his review update, but the news has left the market wondering what lies ahead for the struggling housebuilder.