PRESS: Allianz Trade to cut insurance cover for Vistry suppliers - FT
Credit insurer Allianz Trade plans to reduce the amount of cover that it provides to Vistry Group PLC's suppliers, the Financial Times reported Saturday.
Shares in the Kent, England-based housebuilder fell 8.1% in response to the newspaper report, trading at 260.61 pence each on Monday morning in London. The stock is down 58% over the past 12 months, leaving Vistry with a £828.2 million market capitalisation.
The move by Allianz Trade, part of Munich, Germany-based Allianz SE, could result in insurance cover for Vistry suppliers being reduced by up to 70%, the FT reported, citing "people familiar with the decision".
The final level of cover will depend on Vistry's financial performance in the weeks ahead, one person said.
Vistry will publish half-year results on September 24.
The planned reduction in cover could worsen a squeeze on Vistry's cashflow.
The adjustments to credit limits will affect new trading agreements with Vistry and do not apply retroactively, the FT said.
Suppliers acquire credit insurance for protection in case a customer fails to pay for goods and services. If coverage is withdrawn, suppliers to an affected company may demand payment upfront.
In July, Vistry said Chief Financial Officer Tim Lawlor is stepping down and forecast a first-half pretax loss, as a review by its new chief executive officer continued.
Vistry expects to report a pretax loss of around £30 million in the first half of 2026, before any further impact from the strategic review led by Adam Daniels, who became CEO in April. For the first half of 2025, Vistry had reported a pretax profit of £80.6 million, a 33% dive from £120.7 million in the first half of 2024.
Vistry said it is treating 2026 as a "transition year" focused on lowering leverage and strengthening profitability, while remaining committed to its partnerships strategy.
It continued to forecast a net cash position of more than £100 million by year-end, has a £3.9 billion forward order book and was around 80% forward sold for 2026.
CFO Tim Lawlor will leave the company after the publication of interim results and completion of the CEO review in October to take up a CFO role in a "large privately-owned business in a different sector".
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