Shares in housebuilder Vistry tumbled as much as 12% in early trading on Wednesday after the company warned it expects to slump to a half-year loss of around £30 million, against profits of £40.9 million a year ago.
The collapse came as new chief executive Adam Daniels pushes through a sweeping overhaul, including incentives and discounts to buyers and ramped-up asset sales under what the firm called “cash generation actions”. The company has also completed a voluntary redundancy programme that saw less than 5% of its 4,500 directly-employed workforce leave, delivering savings of £25 million. More cost cuts are on the way, with Vistry stating: “In addition, we expect to identify and achieve further efficiencies as we conclude the balance of the CEO review and organise the business in the right structure to achieve our future goals. The cost savings that are implemented this year will generate a full year benefit in 2027.”
“Vistry shares fell 12% after warning of £30m first-half loss due to tough trading and overhaul costs.”
Adding to the upheaval, chief financial officer Tim Lawlor is to leave in October to join a “large privately-owned business in a different sector”.
Vistry blamed the deterioration in trading between April and June on “increased uncertainty and lower customer confidence triggered by the Middle East conflict”. The company cautioned: “Although we would welcome some demand-side stimulus we are not anticipating a significant change in open market conditions in the second half, or in early 2027.”
Despite the first-half loss, Vistry said it remains on track with expectations for underlying pre-tax profits of £200 million for the full year – excluding any impacts from the review. Mr Daniels will outline the results of the review at the half-year results in September, leaving investors to wait for clarity on how the builder intends to navigate the continuing downturn.
