Vistry has stated that it expects to report a loss before tax of £30m in the first half of its financial year.

The housebuilder said that in the six months to 30 June, it completed 6,100 homes, with over half being affordable housing.

While it expects to deliver a “modest profit” of £20m in the current financial year, cash generation actions, such as enhanced pricing discounts, accelerated asset sales, changes in site mix and changes in build rates have resulted in a loss of £50m, including one of impairments on low or nil margin sites.

Its CEO review process is also expected to lead to further one-off profit impacts, but the overall scale has not yet been determined.

As a result, the group expects to deliver a loss before tax of £30m in the first half of the year.

Vistry said that after a positive start to the year, open market conditions deteriorated in the second quarter, reflecting increased uncertainty and lower customer confidence triggered by the Middle East conflict.

It said that while it would welcome some demand-side stimulus, it is now anticipating a significant change in open market conditions in the second half of the year, or in early 2027.

Following the announcement, shares in Vistry dropped by almost 7%.

The trading update comes as the firm’s CFO, Tim Lawlor, announced that he is to step down from the role, and the housebuilder will start a process to identify a successor in due course.

Chief executive at Vistry, Adam Daniels, stated: "We are taking the necessary decisions to position Vistry for future success and to ensure that we can take advantage of the significant opportunities that our differentiated business model offers. The management team believes that the long-term success of the business must be at the core of our decision making, and as such we are treating 2026 as a transition year to reposition the business to operate with significantly and sustainably lower financial leverage and healthy profitability.

"These initiatives are well progressed, which positions the business to achieve a significant improvement in profitability in H2, as well as a materially stronger balance sheet position.
We continue to expect to deliver a substantial reduction in average net debt levels in the second half of 2026 and continue to forecast a net cash position in excess of £100m at the end of 2026.”

Head of markets at AJ Bell, Dan Coatsworth, described the firm’s trading update as "gloomy".

He concluded: "Investors have been getting jumpy about the state of the housebuilding and broader construction industry. Raw material and labour cost pressures have haunted the sector of late, and the prospect of possible interest rate hikes is bad news for mortgage affordability and housing sales.

"Vistry only recently changed CEO, and a review of the business is still ongoing. New boss Adam Daniels strikes an optimistic tone, but he’s putting on a brave face in what’s clearly a tough market."

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