Vistry avoids another profit warning but sees uncertainty ahead

Housebuilder Vistry has swerved another profit downgrade as it notched up a rise in completions, but cautioned over market uncertainty.

The firm, which issued its third profit alert in as many months at the end of last year, said it remained on track with the recently lowered guidance as it reported an around 7% rise in housing completions to about 17,200 for 2024.

Underlying pre-tax profits are expected to slump by 40% at around £250 million for the year, down from £419.1 million in 2023.

Shares, which have tumbled in the past six months on the slew of profit warnings, rebounded by as much as 14% on Wednesday.

But Vistry, which builds affordable housing and works with local authorities, said there is uncertainty over the outlook for the sector.

It said a “recovery in consumer confidence” is key to sales growth in the private market, while it is also waiting for the outcome of the Government’s upcoming spending review.

Vistry added: “For 2025 we are assuming open market demand to be at a similar level to 2024.

“The group launched a new national consumer marketing campaign on Boxing Day and is pleased to have seen an uplift in inquiries across the business over the past couple of weeks.”

Vistry – formerly known as Bovis Homes Group – is expecting “low single-digit” build cost inflation over 2025, while it is facing an annual cost of £7 million from the recent Budget move to increase national insurance contributions.