MARKET REPORT: Vistry shares rocket as it reassures investors
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After three profit warnings in as many months at the end of last year, investors could be forgiven for fearing the worst ahead of the latest update from troubled Vistry. But their anxiety proved misplaced as the FTSE 250 housebuilder stuck to its most recent earnings forecasts and revealed it has streamlined the business following the shocks of 2024.
Shares jumped 15.7 per cent, or 81p, to 595.5p, but remain down some 60 per cent since September. Other housebuilders were also on the rise as a slight drop in inflation to 2.5 per cent fuelled hopes of interest rate cuts – and cheaper mortgages – this year.
Among the blue-chips, Taylor Wimpey rose 4.8 per cent, or 5.25p, to 114.35p, Barratt Redrow gained 4.4 per cent, or 17.8p, to 420.6p, Berkeley Group advanced 3.8 per cent, or 132p, to 3594p and Persimmon, which issued its own upbeat update a day earlier, surged 4.4 per cent, or 49p, to 1163p.
But it was Vistry that stood out after a what Hargreaves Lansdown analyst Aarin Chiekrie described as ‘a truly disastrous 2024’ that saw it warn that cost overruns in its South Division would knock £165million off profits. Shares boost: Vistry stuck to its most recent earnings forecasts and revealed it has streamlined the business following the shocks of 2024.
In an update yesterday, there was no further downgrade, Vistry saying it looks set to hit its most recent profit forecast of £250million for 2024, while revenues are heading for a better than expected £4.4billion. Julie Palmer, a partner at corporate restructuring group Begbies Traynor, said: ‘After a tumultuous end to 2024 that saw Vistry issue a trio of profit warnings within as many months, today’s update should provide some relief that the housebuilder has entered the New Year with a more upbeat outlook.’.
