Vistry shares rose on Thursday after the group reported results broadly in line with expectations and drew a line under the troubles with their South Division that rocked shares last year.
The housebuilder’s accounting woes now seem to be behind them, and investors have the opportunity to focus on the company’s outlook.
Vistry may well be a story for 2026. It is expected to benefit from the government’s initiative to increase spending on social and affordable housing, which is scheduled to take effect early next year. However, near-term constraints due to the poor economic environment will cap any major investor excitement.
“The Government’s recently announced £39 billion Affordable Homes Programme is hugely welcome, and this unprecedented funding, together with a 10-year rent settlement and the expected reintroduction of rent convergence measures, will drive the delivery of the high-quality affordable homes the country so badly needs,” said Greg Fitzgerald, Chief Executive of Vistry.
“Vistry’s Partnerships strategy is firmly aligned with the Government’s plans and we are looking forward to playing a key role in the delivery of this new Affordable Homes Programme and, in doing so, supporting the Board’s long-term value creation strategy.”
Adjusted profit before tax fell to approximately £80 million from £120.7 million in the same period last year. The company’s adjusted operating profit also declined to around £125 million, down from £161.8 million in H1 2024.
Revenue for the first half came in at roughly £1.8 billion, representing a decrease from the £2.0 billion recorded in the previous year. This reflects the challenging market conditions that have persisted throughout the period and is evident across most London-listed housebuilders.
The group completed approximately 6,800 homes during the first half, down from 7,792 in H1 2024. Partner-funded developments accounted for 73% of completions, with the remaining 27% comprising open market sales. Sales rates averaged 1.02 per week, compared to 1.21 in the prior year period.
Despite the slowdown in completions in the first half, Vistry has a robust forward order book, which stands at £4.3 billion, with the company 79% forward sold for the full financial year.
Vistry shares were 2% higher on Thursday.
“Visty showed some signs of returning to life in the first half of 2025, after its share price collapsed by around 60% at the end of 2024. Partner-funded activity remained subdued over the period due to uncertainty around the June spending review,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“Open market demand has fared better, but it too has been held back by affordability issues, as expected interest rate cuts have been pushed further out into the future. On the costs front, Vistry’s flexing its size and scale to secure better prices with suppliers and keep build costs under control. As a result, the group expects build-cost inflation to remain at low single-digit levels over the full year.
“The government’s pledge in the June 2025 Spending Review to invest an unprecedented £39 billion into affordable housing surpassed expectations and marks a significant step up in funding. The move has been described as many as a gamechanger, and it’s likely to benefit Vistry more than most other players in the sector. More details are expected in the Autumn, but Vistry’s expecting the funding to start flowing in the first half of 2026, which should start feeding into an improved order book and uptick in revenue.”