Housebuilder Vistry declares third profit warning in three months
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Vistry Group shares plunged on Tuesday after the firm issued its third profit warning in three months following delays to some home completions and transactions. The Kent-based housebuilder now expects its adjusted pre-tax profits for 2024 to be approximately £250million, compared with previous guidance of around £300million.
It said several transactions with partners were taking 'longer to conclude' and are now set to close in 2025. Vistry also revealed it had withdrawn from deals whose commercial terms were 'not sufficiently attractive' and observed a hold-up on some open market completions, although it said this had damaged profitability 'to a lesser extent.'.
Following this trading update, shares in Vistry Group plummeted on Tuesday morning by 16.2 per cent to 548p, taking their losses over the past six months to around 55 per cent. Back in October, the FTSE 250 business warned of a £115million hit to future profits, including £80million this financial year, due to higher-than-projected build costs on some developments in its south division.
Downgrade: Vistry Group shares plunged on Tuesday after the firm issued its third profit warning in three months. A month later, Vistry said the earnings impact would be worse than anticipated at £165million, while adjusted pre-tax profit guidance for 2024 was cut to £300million.
Greg Fitzgerald, the company's executive chairman and chief executive, reportedly considered resigning over the accounting blunder. However, chief operating officer Earl Sibley agreed to step down instead after almost a decade working for the firm, and Vistry axed his COO position.
