Vistry delivers a strong second-half recovery while securing land for future expansion

Vistry Group has reported adjusted profit before tax of around £270 million for the year ended 31 December 2025, up from £263.5 million the previous year, despite completing nearly 9% fewer homes.

The housebuilder delivered approximately 15,700 units during the year, down from 17,225 in 2024.

However, revenue remained broadly flat at £4.2 billion, supported by a 3% increase in average selling prices to £282,000, primarily reflecting geographical mix changes. Investors should be encouraged by performance during the period.

But the backdrop of a slow UK property market weighed on the stock on Wednesday and shares fell by more than 8%.

Partnership focus delivers margin gains

The group’s distinctive partnership-focused strategy demonstrated resilience amid challenging open-market conditions over the past year. Partner-funded homes accounted for 74% of completions, maintaining the previous year’s mix, whilst open market volumes fell 11% to around 4,100 units.

Operating margins improved significantly, rising from 6.7% in the first half to 8.4% for the full year. This improvement was driven by the commencement of higher-margin developments, increased operating leverage, and reduced impact from previous cost issues in the former South division.

Partner-funded completions decreased 8% to approximately 11,600 units, mainly reflecting funding uncertainty in the first half.

Affordable housing volumes surged 30% in the second half following June’s Spending Review, which provided greater clarity on future funding. However, the Private Rented Sector (PRS), also known as Build to Rent, saw volumes decline by around 25% as several active partners paused deliveries for refinancing.

The wider UK property market is proving to be a constraint for the group. Vistry’s sales rate averaged 0.96 homes per site per week, down from 1.07, as uncertainty surrounding the Autumn Budget created a more subdued market in Q3 and early Q4. To combat the slowdown, Vistry supported its open-market strategy with incentives of up to 6% of the sale price to help encourage buyers.

Strategic land acquisition

Taking advantage of subdued market conditions, Vistry secured approximately 9,500 plots across 30 sites in the second half.

Notable acquisitions included three large strategic sites in Worcester, Rugeley and Bury St Edmunds, totalling some 5,000 plots between them.

The company also received the maximum £50 million award from Homes England as part of £2 billion additional grant funding for 2021-26, recognising its performance as a Strategic Partner. This is expected during Q2 2026.

“Our partnership housing strategy positions us well to play a key role in the delivery of the Social and Affordable Homes Programme (SAHP) 2026-2036,” said Greg Fitzgerald, Chief Executive.

“We will be targeting early deployment of allocations for our partners and ourselves to kick start the growth of affordable housing supply and we expect this to contribute to our second half performance in 2026. Encouragingly, we have already completed a first site acquisition for the Group’s joint venture with Homes England.”

Build cost inflation remained in low single digits, benefiting from the group’s scale and focus on standardisation. Vistry Works delivered over 4,600 timber frame units, up from 2,900 the previous year. Land sales contributed approximately £200 million of revenue, well above the prior year’s £91 million.

Net debt stood at approximately £145 million at year-end, down from £180.7 million, though average daily net debt rose to around £730 million from £698 million, reflecting higher opening debt and delayed partner-funded deals in late 2025.

Vistry is in a good position and should see further progress in 2026. The group enters the new period with forward sales of approximately £4 billion, and management believes government initiatives to boost house building will drive increased activity in the second half, whilst PRS pricing should strengthen as partners respond to portfolio delivery opportunities.

While Vistry is well-positioned to capture growth, it remains reliant on external factors beyond its control.

Governance, risk and compliance software developer Acuity RM (LON: ACRM) says 2025 revenues were maintained at £2.1m, while costs were much lower. The company was still loss making in the year, but it was profitable in the fourth quarter. Contracted revenues are £1.9m. The share price jumped 28.6% to 0.9p.

Plant-based polymers supplier Itaconix (LON: ITX) beat expectations for 2025 revenues ending the year with $10.3m, up from $6.5m in 2024. Growth was from existing and new customers. The cash outflow is also reducing. There will be an update on trading when the full figures are published in March. The share price increased 11.6% to 120p.

Eagle Eye (LON: EYE) has won a major US contract for its AIR loyalty platform and its AI services. The US retailer Wakefern Food Corp, which has more than 380 supermarkets, is the fourth major US client since last June. The contract business should be up and running by mid-2026. The share price rose 10.7% to 310p

Iodine producer Iofina (LON: IOF) reports second half iodine production 23% ahead at 438 tons, taking the total for the year to 743 tons. Net cash was better than expected at $5.2m. Canaccord Genuity raised its 2025 revenues forecast from $62.8m to $65.2m and earnings edged up from 2.6 cents/share to 2.8 cents/share, while the 2026 figure has been increased from 3.5 cents/share to 3.7 cents/share. The share price improved 6.73% to 27.75p.

FALLERS

Shuka Minerals (LON: SKA) has received the £815,000 payment from Gathoni Muchai Investments, but it has received a payment instruction transfer for value. A placing has raised a further £1m at 4p/share. This will fund the completion of the acquisition of Leopard Exploration and Mining and the Kabwe zinc mine. The share price declined 22.7% to 4.25p.

Marketing services provider The Mission Group (LON: TMG) says trading was resilient since the interims despite difficult trading conditions. However, some projects have been delayed. Net debt is £9m. Canaccord Genuity has reduced its forecast 2025 revenues from £73m to £68m and pre-tax profit cut from £6.5m to £2.9m. The 2026 pre-tax profit forecast is reduced from £8.1m to £6.9m. Jon Kempster and Emma Wright have joined the board as non-executive directors, while Mark Lund has stepped down. The share price slipped 16.2% to 15.5p.

Retailer Shoe Zone (LON: SHOE) reported 2024-25 results in line with the October trading statement, but Zeus has reduced its expectations for this year. Full year revenues fell 8% to £149.1m due to store closures and reduced footfall. Online sales did increase. Higher wage costs meant that pre-tax profit dropped from £10m to £2.4m. This year’s pre-tax profit forecast has been cut from £4.5m to £1m on a further fall in revenues for £145.8m. The share price fell 14.8% to 57.5p.

Online fashion retailer Sosandar (LON: SOS) increased third quarter revenues 10% higher at £13.4m and gross margin improved. Sales from the company’s own site were 27% ahead, but the Marks & Spencer business is still being affected by the cyber incident. Net cash is £9.7m. Trading is in line with expectations of a full year pre-tax profit of £400,000. The share price decreased 9.37% to 7,25p.

Lexington Gold (LON: LEX) has raised £1.19m at 4p/share and converted £350,000 of loan notes at the same price. This will fund the Jelani joint venture and undertake drilling programmes in South Africa, as well as continuing work on options for projects in the US. Lexington Gold has received updated JORC mineral resource estimates for Jones Keystone and Loflin deposits on the Jones Keystone-Loflin project in the US. After a reduction in the cut off grades, there is a 53% increase in contained gold at the project. The total inferred resource is 12.9Mt @0.78g/t for 323,500 ounces of contained gold. Additional targets have been identified. The share price dipped 5.68% to 4.15p.

The FTSE 100 traded in a tight range on Tuesday as investors digested the latest wave of macroeconomic developments, while Whitbread shares jumped on an encouraging trading update.

London’s leading index was 2 points higher at the time of writing after trading in a 15-point range for most of the session.

“The FTSE 100 held steady just below its recent record highs early on Tuesday despite the ongoing geopolitical tensions which have been a feature of 2026 so far,” said AJ Bell head of markets Dan Coatsworth.

“This followed a new record for the Nikkei 225 overnight in Japan. A weak yen, which boosts an export-reliant economy, and the possibility of increased stimulus helped generate significant investor excitement after a public holiday.

“The Trump administration’s announcement of a 25% tariff on countries doing business with Iran, and continuing suggestions of potential military intervention amid the escalating protests in the country, do not seem to be spooking markets too much right now.

Whitbread, one of the UK Investor Magazine’s ‘Top 20 Stock Picks for 2026’, was the FTSE 100’s top riser after releasing an encouraging trading statement that goes a long way towards squashing any fears of a significant slowdown for the group. 

“Whitbread’s shares have been under pressure, with investors questioning the company’s ability to absorb the impact of business rate rises following Rachel Reeves’ November Budget,” explained Derren Nathan, head of equity research, Hargreaves Lansdown.

“Today’s Q3 statement should provide some relief for investors, with demand accelerating in both the core UK and fledgling German operations.

“On the cost side, the group’s estimate of the next financial year’s business rate impact has been reduced below the previous range of £40-£50mn to £35mn, and the group is now set to drive greater-than-planned cost efficiencies this year. It’s also playing its part in the growing clamour by the hospitality industry for more supportive government policy.

“Whether this is enough to keep activist shareholder Corvax happy remains to be seen.”

Whitbread shares were over 4% higher at the time of writing. 

Barclays was among the risers as bargain hunters stepped in to buy into the dip yesterday caused by Trump’s decision to cap US credit card rates at 10%. 

Kingfisher was the FTSE 100’s top faller, losing 2.5%, as a bout of profit taking accelerated.

Games Workshop was also among the losers after a 10% increase in revenue didn’t do enough to spark a fresh wave of buying in the shares, which are up 39% over the past year.

“Games Workshop’s latest results didn’t offer anything to get the market too excited after a 40%-plus surge for the shares seen over the last 12 months,” Dan Coatsworth said.

“There’s no doubt 2025 was a banner year for the fantasy miniatures specialist as it joined the ranks of the FTSE 100 and delivered several upgrades to guidance. The latest figures may have been another record set of results, accompanied by a healthy increase in the dividend despite a hit from US tariffs, but a pause for breath in the share price is no major surprise in the circumstances.”

Shoe Zone shares sank on Tuesday after the retailer reported a significant decline in revenues and profits for the year ended 27 September 2025, as challenging trading conditions and reduced consumer spending took their toll on the budget footwear retailer.

Results make horrible reading for investors. The company recorded revenue of £149.1m, down 7.6% from £161.3m in the previous year, whilst profit before tax fell 67% to £3.3m from £10.1m.

Earnings per share dropped to 4.08p from 16.04p, and the company did not pay a dividend, compared with 2.5p per share the prior year.

The revenue decline was driven primarily by store closures, with Shoe Zone operating 269 stores at the period end, down from 297 the previous year, a 9.4% reduction. Store revenue fell to £113.1m from £126.1m, partly offset by digital revenue growth of 2.3% to £36.0m.

The company closed 39 stores during the period whilst opening 11 new locations and refitting six stores to its larger format. Digital performance was supported by the introduction of free next-day delivery on all shoezone.com orders and strong Amazon sales.

The form was persistent macro-economic pressures as the primary cause of weak trading, particularly in the second half, and pointed to declining consumer confidence following the Government’s October 2024 budget, alongside persistent inflation, higher interest rates, and reduced disposable income. A grim picture.

“Sales were good when there was a reason to buy, such as the warm summer and the Back-To-School period, however, discretionary spending remained subdued as consumers exercised greater caution,” the firm wrote in results.

The company warned that trading conditions have remained difficult into the new financial year, with revenue below forecast in the first quarter. Shoe Zone expects profit before tax of approximately £1.0m for the financial year ending 3 October 2026, representing a further substantial decline.

The Gym Group has reported upbeat trading momentum through the second half of 2025, with full-year revenue climbing 8% to £244.9m from £226.3m the previous year.

Shares in the group rose on Tuesday as investors cheered rising revenues and news that management expected performance for the year to be at the top end of guidance.

Average membership reached 945,000, up 4% from 906,000 in 2024, whilst the group closed the year with 923,000 members, up from 891,000 at 31 December 2024. These are steady gains and show that even at the current scale, the group still has room to grow.

Average revenue per member per month improved 4% to £21.60, up from £20.81 in 2024, reflecting the operator’s pricing power in the value gym segment.

Expansion Programme Delivers

The company opened 16 new sites during the year, at the top end of its 14-16 site target range, bringing the total estate to 260 gyms. Forty locations are now trading in the enhanced format and are performing well.

Net debt fell to £59.3m from £61.3m the previous year, coming in £5m below analyst consensus expectations. The deleveraging positions the group well for its accelerated growth plans.

Outlook and Capital Returns

Group Adjusted EBITDA Less Normalised Rent for FY25 is expected to be slightly above the top end of the current analyst consensus range of £52.5-54.9m. The company anticipates maintaining this momentum into 2026, with FY26 Group Adjusted EBITDA Less Normalised Rent also projected slightly above the top end of the £55.2-59.3m consensus range.

Buoyed by strong trading performance, The Gym Group is accelerating its expansion programme. The company now expects to open around 75 new sites over the next three years, funded from free cashflow, with approximately 20 new gyms set to launch in 2026 alongside ongoing reinvestment in existing sites and technology platforms.

The board has also announced plans to commence a share buyback programme of up to £10m, reflecting confidence in the business model and surplus financing capacity. The programme is expected to be completed by the end of 2026.

The FTSE 100 recovered early losses on Monday as investors fretted about the future of the US central bank following news that the US DOJ will launch a probe into Fed Chair Jerome Powell.

The blow to sentiment weighed on UK stocks, sending London’s leading index sharply lower on the open before the gap was closed. The FTSE 100 was up 3 points at 10,126 at the time of writing.

“Markets dipped as investors feared about the independence of the Federal Reserve,” says Russ Mould, investment director at AJ Bell.

“US prosecutors launched a criminal investigation into Fed chair Jay Powell over a renovation of the central bank’s headquarters. Powell implied the root of the issue was the Fed’s refusal to cut interest rates as fast as Trump wants, rather than any matters involving a building.

“The probe has unnerved markets and raised questions about what might happen to the Fed once Powell steps down in May. There is a fear that Trump is meddling too much with policies that are meant to be set independently.”

Around 60 of the FTSE 100’s constituents were trading negatively at the time of writing.

Barclays was the top faller, losing 3.5%, after Trump said he would cap credit card rates in a move that will damage the profitability of Barclays’ US business.

Russ Mould explained: “Barclays fell 4% after Trump called for a one-year 10% cap on credit card interest rates. The UK bank entered the US credit card market in 2004 with the acquisition of Juniper Financial and it is now one of the largest issuers in the country via partnership brands.”

Mondi shares didn’t fare much better than Barclays, falling 3.2%, after a Morgan Stanley analysts cut their rating on the stock to underweight.

Fresnillo shares jumped to the top of the FTSE 100 leaderboard, up 6.2%, as gold prices soared amid concerns about the Federal Reserve’s independence.

“Gold has surged to a new high on the news, while US futures are weaker,” explained Chris Beauchamp, Chief Market Analyst at IG.

“This certainly wasn’t on our bingo card for 2026, but it represents a major crisis for markets and has the potential to restart worries about the dollar and US monetary policy.”

Gold miner Endeavour Mining rose 2%.

BAE Systems’ good start to 2026 continued with another 2.4% gain amid rising geopolitical tensions.