Vistry shares fall 8% after wider-than-expected H1 loss

Vistry Group's shares experienced an 8.21% drop to 246.97 pence on Thursday, following the housebuilder's announcement of a wider-than-anticipated first-half loss. This loss was reported at £607 million, compared to the estimated £30.8 million loss, with revenue falling to £1.42 billion, below the forecasted £1.47 billion. Adjusted profit before tax turned to a £83.3 million loss, up from the expected £30.1 million loss.

The company now anticipates a broadly neutral cash position for the year, below the previous expectation of over £100 million in net cash, due to weaker private home sales and renegotiated or withdrawn partner deals. Vistry expects around £165 million in adjusted profit before tax, excluding strategic items, and a further £40 million reduction in year-end profit due to delayed partner deals.

The company forecasts adjusted profit before tax of about £185 million for FY27, assuming stable market conditions. Vistry also identified £50 million in additional overhead savings, in addition to the previously announced £25 million, and aims for lower leverage in the coming years. Jefferies stated that Vistry's CEO review reassured investors on the strategic direction, but execution will be crucial, with investors awaiting evidence of progress before re-engaging with the stock.

The broker noted that FY26 adjusted PBT guidance of £125 million is below the estimated £148 million, while FY27 guidance of about £185 million is above its previous forecast of £173.9 million.