Huge losses force major rethink at Vistry
Plunging deep into the red and with little sign of industry headwinds improving, the housebuilder's new boss is taking drastic action. ii's head of investment has the details.
24th September 2026 08:45
by Victoria Scholar from interactive investor
Vistry Group (LSE:VTY) has reported an adjusted first-half loss before tax of £83.3 million, down from a profit of £80.6 million in the same period last year. It also lowered its annual profit outlook – the housebuilder now expects 2026 adjusted pre-tax profit of around £165 million, reduced from £200 million.
Include exceptional items like a £475 million impairment of goodwill and another £73.2 million building safety provision, the reported loss was £661.3 million compared with a £40.9 million profit a year ago.
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Total completions hit 6,304 in the six months ended 30 June, down 8% year-on-year, and net debt increased to £468.8 million, up from £293.1 million versus the same period in 2025.
Vistry’s replacement finance director for Tim Lawlor who resigned in July is yet to be confirmed, creating some C-suite uncertainty for investors. The company said the appointment of his replacement will be announced ‘imminently’.
New chief executive Adam Daniels is aiming to reposition Vistry as a smaller, more specialist mixed-tenure housebuilder with greater focus, discipline, and control. The company is resizing and simplifying to reduce leverage and achieve sustainable returns. As part of this the company is aiming to deliver overhead cost savings of £50 million per year by reducing regions and volumes and further cost savings from a recruitment freeze. It is aiming to reduce its net debt to around £500 million in FY27 and below £400 million the year after.
In terms of the current market, Vistry said open market conditions have become ‘more challenging over the summer’. The housebuilder has been faced with macro headwinds from this year’s energy shock leading to cost pressures, weaker affordability and consumer confidence amid the higher-for-longer interest rate backdrop.
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Shares had already had a painful run lately, shedding close to 60% year-to-date before this morning’s further sharp slide, underscoring the challenges at hand for its boss and the need for a drastic turnaround.
There was some positivity in August when Homes England confirmed Vistry as one of 33 strategic partners for its £39 billion, 10-year Social and Affordable Homes Programme (SAHP). But that hasn’t gone far to offset the recent disappointing performance. Previous profit warnings have hurt the company and ongoing uncertainty ahead of next month's Budget is another overhang.
Analysts remain cautious with Peel Hunt slashing its price target on the stock this morning.
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