Vistry, the º£½ÇÊÓƵ's largest housebuilder by output, has reiterated its previously downgraded profit guidance for the coming year amid uncertain market conditions. The company stated that the outcome of the government's spending review and a "recovery in consumer confidence" would be crucial in determining its performance in 2025.
Vistry anticipates an adjusted pre-tax profit of around £250m following a profit warning issued in December, which is nearly half of the £419.1m reported the previous year, as reported by .
Despite this, shares rose almost five per cent in early trading as investors were relieved that another profit warning had been avoided.
Total completions increased approximately seven per cent to 17,200, resulting in revenues of £4.4bn, a rise of about nine per cent. Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, commented: "After delivering three consecutive profit downgrades in the three months prior, Vistry has finally broken its streak of bad news," He added: "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."
Cost overruns in Vistry's South Division posed a significant challenge towards the end of 2024, impacting profit by approximately £105m last year.
The company noted that it had implemented a "series of control enhancements" across the group during the fourth quarter, including monthly site cost reviews.
In an update delivered on Wednesday, Vistry Group assured investors that the significant problems identified in their South Division appear to be localised. "Whilst these control enhancements have been applied group-wide, the Board remains confident that the significant issues identified in the South Division have not existed elsewhere in the group," they reported.
Additionally, for full-year 2025, the company predicts "low single digit build cost inflation," alongside an approximate £5m impact on profits due to the National Insurance increases announced in the Autumn Budget.
