>> Vistry Group Trading Update 15th January 2025 <<

Vistry Group PLC provided a trading update for the year ending 31 December 2024, ahead of its full-year results on 26 March 2025. The Group reported total completions up by approximately 7% to 17,200 units, with adjusted revenue increasing by 9% to £4.4bn. However, adjusted profit before tax is expected to decline to approximately £250m, down from £419.1m in 2023, reflecting delays in partner agreements, canceled land transactions, and slower open market completions. Partner Funded units accounted for 73% of total completions, with significant growth in this segment compared to open market sales, which declined due to constrained consumer demand and mortgage affordability.

The Group continued to secure high-quality land and development opportunities, totaling 16,500 units for the year, and strengthened its partnership strategy with over 220 new agreements. Notable projects include a regeneration initiative with Homes England and a joint venture in Cornwall delivering 1,200 homes. Despite neutral build cost inflation and stable average selling prices, net debt increased to approximately £180m due to higher finished stock and work in progress. The Group emphasized improvements in customer satisfaction, achieving a 5-star HBF rating for the fifth consecutive year and receiving multiple industry awards.

Challenges emerged in Vistry's South Division, where cost issues impacted profits by £105m in FY24. The Group implemented tighter controls and restructured its operations, consolidating six divisions into three larger ones to streamline reporting and leadership. Looking ahead, Vistry remains committed to its asset-light, high-returns Partnerships strategy and aims to reduce stock and improve cash generation in FY25. With a strong forward sales position of £4.4bn, the Group expects steady demand from Partner Funded markets but acknowledges that open market conditions remain uncertain, reliant on consumer confidence and government housing policies.

For FY25, Vistry plans to mitigate low single-digit build cost inflation through scale efficiencies and operational improvements. The Group also aims to address challenges in the South Division under new leadership and build on its strong foundation in affordable housing and PRS markets, ensuring sustainable growth and profitability.