Vistry Profit Forecast Slashed as Losses Balloon to £661m 2026

Vistry Group, one of Britain’s biggest housebuilders, has slashed its annual profit forecast after half-year losses ballooned to £661.3m, as the company grappled with a £600m pile of unsold homes. The owner of Bovis Homes and Countryside reported a loss before tax for the first six months of the year, versus a profit of £40.9m the year before, dragged back by a £475m writedown and a £73m provision for building safety works.

New CEO Adam Daniel Unveils Turnaround Plan

Adam Daniel, the new chief executive, insisted that “the issues can be fixed” as he set out a detailed turnaround plan. The strategy involves pulling out of private sales in south-east England and slimming operations to turn Vistry into a more focused, 12,000-homes-a-year builder. Further job losses loom, however, after Vistry announced new cost savings of £50m, on top of a £25m voluntary redundancy programme and hiring freeze earlier this year.

The company reduced its workforce to 4,150 at the end of July, with 350 people leaving since the summer. It is also closing some regional offices, moving from 25 to 12 regions.

Financial Performance and Comparisons

Vistry completed 6,304 homes, down by 8% from a year earlier. After resorting to steep discounts to sell a £600m pile of houses, it is now left with £220m of unsold stock. For the year as a whole, it now expects to post an adjusted profit before tax of £165m, after making an adjusted loss of £83.3m in the first half, far worse than expected.

Key Takeaways for Investors and Homebuyers

• Profit forecast slashed: Vistry now expects adjusted profit before tax of £165m for the full year, down significantly from previous guidance.
• Job cuts and restructuring: 350 jobs lost since summer, with further losses expected as the company aims for £50m in cost savings.
• Regional consolidation: Moving from 25 to 12 regions, closing offices and pulling out of private sales in south-east England.
• Unsold homes challenge: Steep discounts reduced unsold stock from £600m to £220m, but at a cost to margins.
• Turnaround plan: New CEO Adam Daniel focuses on a leaner, more focused builder targeting 12,000 homes annually.

What This Means for the UK Housing Market

Vistry’s troubles reflect broader challenges in the UK housing sector, including softening demand, higher interest rates, and building safety costs. The company’s decision to pull out of private sales in the south-east suggests regional disparities in the market. As Vistry slims down, its ability to deliver affordable housing and meet government targets may be impacted.

For investors, the key question is whether Daniel’s turnaround plan can restore profitability. The £50m cost savings and regional consolidation are steps in the right direction, but the company still faces a tough trading environment. Homebuyers may see fewer options in some areas, but Vistry’s focus on partnerships and affordable housing could provide stability.

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