Vistry has announced that its profit guidance currently remains in line with expectations, after delivering three profit downgrades in consecutive months.

The housebuilder said it now expects its pre-tax profit to fall from £419m to around £250m, which is in line with its previous guidance for the full financial year.

It also expects revenue to rise by around 9% to £4.4bn, beating expectations, while the number of total home completions is set to reach 17,200, a year-on-year increase of 7%.

However, the firm has stated that in order to cut costs following issues in 2024, it is now cutting its six divisions down to three.

Following the announcement, Vistry’s shares increased by as much as 10%, according to Reuters, after the firm’s shares dropped by 38% in 2024.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, said: "After delivering three consecutive profit downgrades in the three months prior, Vistry has finally broken its streak of bad news.

"The trading update wraps up a truly disastrous 2024 for the group, where despite new home completions and revenue rising, profits have been on a downward spiral. That’s largely down to the group’s strategy shift to a partnerships-only model, where it teams up with local authorities and housing associations.

"These partners foot most of the bill, freeing up Vistry to deploy its cash on more projects. That’s seen the group chase faster-than-average growth, but a series of managerial missteps and accounting issues that have led to profit downgrades have raised serious questions about the new structure and internal controls."

Looking ahead, Vistry said it "continues to believe the partnerships market remains very attractive", having secured a pipeline of new land and development opportunities in 2024 totalling 16,500.

However, it did address that market conditions for both partner funded and open market sales "remain uncertain".

It added that the Government’s spending review and transition to an new affordable homes programme was "important for unlocking a step in momentum" and a recovery in consider confidence.

Chiekrie concluded: "Given the recent macroeconomic woes, today’s update may not be enough to calm investors' nerves.

"Looking forward, Vistry expects profits to grow in 2025, albeit from a very low base. But after a series of disappointing profit downgrades late in 2024, Vistry’s going to need to string together several periods of hitting targets before investors can take what it says at face value again."

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