Vistry warns of first half loss as CEO's strategic shift gathers pace
Vistry Group PLC on Wednesday said its chief financial officer is stepping down and forecast a first-half pretax loss as a review by its new boss continues.
The Kent, England-based housebuilder 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 Chief Executive Adam Daniels.
Daniels, who was promoted to chief executive at Vistry in April, is leading an operational review of the group, the findings of which will be shared no later than interim results in September.
Vistry said the review process is expected to lead to further one-off profit impacts, but the overall scale is not yet determined and nor is the timing.
Shares in Vistry fell 10% to 226.31 pence each in London on Wednesday and have fallen 63% in the last 12 months.
Initial findings of the review highlighted a "significant" opportunity to develop a more focused regional footprint, increased annual cost savings and "substantially" lower work in progress.
"We are taking the necessary decisions to position Vistry for future success and to ensure that we can take advantage of the significant opportunities that our differentiated business model offers," CEO Daniels said.
Recent initiatives include cutting prices on slower-moving stock, reducing exposure to higher average selling prices, reducing the amount of private work in progress and targeted reductions in the land bank, all of which "have had a sizeable adverse impact on the profit recorded in the first half of the year," the CEO added.
These initiatives position the business to achieve a "significant" improvement in profitability in the second half of 2026 and deliver a "substantial" reduction in average net debt levels, Daniels said.
In the first half of 2026, Vistry completed around 6,100 homes, down from 6,889 a year earlier, while its sales rate edged up to 1.03 homes per outlet per week from 1.01 despite average private sales discounting rising sharply to 7.1% from 1.4%.
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 continues to forecast a net cash position of more than £100 million by year-end, has a £3.9 billion forward order book and is around 80% forward sold for 2026.
The group also reiterated guidance for full-year adjusted pretax profit in line with market expectations of £200 million, down from £268.8 million in 2025.
In May, Vistry forecast adjusted pretax profit for 2026 in the middle of a £168 million to £283 million analyst forecast range, or £225.5 million at the midpoint.
Market conditions deteriorated in the second quarter, reflecting increased uncertainty and lower customer confidence triggered by the Middle East conflict.
Separately, Vistry said Chief Financial Officer 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.
Vistry has commenced a process to identify a successor.
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