Vistry Group Cuts Operations After £661 Million Half-Year Loss

Housebuilder Vistry Group reported a pre-tax loss of £661.3 million for the six months ending June 30, a sharp decline from the £40.9 million profit recorded during the same period last year. The losses were driven by a £475 million asset write-down, a £73.2 million provision for high-rise building safety, and steep discounts used to clear £600 million in unsold homes. The company attributed some financial pressure to cost inflation caused by the Iran war.

To stabilize the business, CEO Adam Daniels announced a turnaround plan to save £50 million. The restructuring includes more than halving regional operations from 25 to 12, exiting the private home sales market in the South East, and reducing the land bank from 51,000 to 36,000 plots. These changes will lead to further site closures and job losses among a workforce of approximately 4,150 employees, with 350 workers already having left since the summer.

Vistry has lowered its full-year profit guidance to approximately £165 million from £200 million and reduced its annual new homes target to 12,000 completions. Despite the slump and a year-to-date share price decline of nearly 60%, the company maintains lender support and does not expect to raise equity. Additionally, the company received £350 million in government funding to construct 3,000 affordable homes.