Vistry Shares Plummet Amid Warning of First-Half Loss and Finance Chief's Departure

Vistry shares experienced a significant drop of over 8% on Wednesday, following a warning from the company that it anticipates a £30 million pre-tax loss for the first half of the year. This downturn comes as finance director Tim Lawlor announced his departure after a challenging period for the housing sector, marked by a slump in demand.

The housebuilder's stock fell 8.16%, or 20.6 pence, to 231.8 pence on Wednesday. Over the past year, Vistry shares have declined by more than 60%.

Financial Setbacks and Strategic Repositioning

According to the company's update, the anticipated £30 million loss for the six months ending June 30 is attributed to a £50 million charge. This charge stems from actions including increased discounts on slower-moving homes, asset sales, and a reduction in the company's landbank. Without these measures, Vistry would have reported a pre-tax profit of approximately £20 million, a substantial decrease from the more than £260 million profit recorded over the previous two years.

The first half of the fiscal year was also impacted by a reduced number of transactions with housing association partners, delays in land sales, and elevated finance costs. The average daily net debt for the group rose to £799 million in the first half, with net debt standing at £470 million by the end of June.

Home sales completed during the period numbered around 6,100, down from 6,889 in the same period last year. The average discount applied to private sales increased to 7.1%, up from 1.4%.

In response, Vistry has more than halved the value of unsold private homes under construction to below £300 million and further curtailed land acquisitions during the second quarter.

Outlook for the Second Half

Despite weaker open market conditions in the second quarter, which the company attributes to reduced consumer confidence following the Middle East conflict, Vistry expects to end 2026 with net cash exceeding £100 million. This projection is supported by the pausing of the company's share buyback program.

New group boss Adam Daniels described 2026 as a "transition year" to "reposition the business to operate with significantly and sustainably lower financial leverage and healthy profitability." Daniels is currently leading a review of the company's strategy and execution, with findings scheduled for release in September.

Daniels expressed confidence in the "differentiated partnerships strategy" and sees "significant opportunity to develop a more focused Vistry with improved profitability, a stronger balance sheet, higher returns on capital, and more consistent delivery."

Looking ahead, Vistry anticipates a stronger second half of the year. This is expected to be driven by higher completion volumes, increased partner-funded activity following anticipated affordable housing funding allocations, reduced overheads, and profits from land sales.