Housebuilder Vistry slashes profit forecasts as losses balloon
Summary
Vistry Group, a large British housebuilder, cut its profit forecast after reporting big losses in the first half of the year. The company faces challenges like unsold homes, rising costs, and weaker sales, and plans to restructure and focus on building fewer homes in certain regions to improve its finances.Key Facts
- Vistry had a loss before tax of £661.3 million in the first six months, down from a £40.9 million profit last year.
- The company now expects a full-year adjusted profit before tax of £165 million, after an adjusted loss of £83.3 million in the first half.
- It has £600 million worth of unsold homes, down from which it discounted prices by an average of 7.1% to reduce the stock.
- Vistry completed 6,304 homes in the first half, 8% fewer than the previous year.
- The company’s debt rose to £468.8 million from £293.1 million.
- Rising costs, partly due to fuel price increases linked to the Iran war, and weak sales are pressuring the company.
- Vistry received £350 million in government funding to build 3,000 affordable homes under a national support program.
- The new CEO, Adam Daniel, plans to reduce the land bank and simplify operations, focusing more on northern and central England.
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