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Investing.com -- Vistry Group (LON:VTYV) on Thursday reported a 34% year-on-year drop in first-half profit before tax to £80 million, as completions fell and affordability pressures weighed on demand.
The housebuilder completed approximately 6,800 units in the six months ended June 30, down from 7,792 a year earlier.
Open Market completions accounted for 27% of the total, compared with 24% in the prior-year period.
The group operated from 210 active sales outlets across 350 build-out sites, down from 364 a year earlier.
Group revenue for the period is expected to be about £1.8 billion. The sales rate held at an average of 1.022 per outlet per week.
Net debt as of June 30 stood at approximately £295 million, lower than the £322 million recorded a year earlier, despite a £92 million higher opening balance at the end of 2024.
Average daily net debt was £590 million in the first half, with second-quarter average net debt declining to £521 million.
The company continued its £130 million share buyback programme, with £57 million completed to date.
Vistry extended its £500 million Revolving Credit Facility and £400 million Term Loan during the period, pushing maturity to April 2028 with unchanged terms and no change to its group of eight lenders.
Adjusted operating profit and profit before tax were in line with expectations, according to the company.
The prior-year comparable figures were restated due to cost forecasting issues in the South Division.
Vistry said demand from its affordable housing partners remained selective amid funding constraints and uncertainty ahead of the June government spending review.
The company cited resilient activity in the Private Rented Sector, including new entrants and increased investment.
Affordability challenges persisted, particularly for first-time buyers. Vistry expects low single-digit build cost inflation for the full year, supported by proactive engagement with suppliers and subcontractors.
The forward order book totaled £4.3 billion as of June 30, compared with £5.1 billion a year earlier.
The company said 83% of Partner Funded sales were secured, and the remaining balance was covered by its current deal pipeline.
Vistry secured 28 new land and development opportunities in the half, compared with 32 in the same period last year.
It said it expects the rate of land acquisition to increase in the second half, in line with its strategy to reduce the length of its owned landbank.
The company also reported being awarded 31 NHBC Pride in the Job Quality Awards.
During the period, Vistry contributed £12 million to support the construction of affordable homes across the UK, following engagement with the UK Competition and Markets Authority regarding an ongoing investigation.
The group said it expects a step-up in affordable housing volumes in the second half of the year, supported by recent land acquisitions and a pipeline aligned with the government’s £39 billion Affordable Homes Programme.