Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com -- Vistry shares fell 5% in London trading Wednesday after the U.K. home construction group reported first-half results broadly in line with expectations, with profits and revenues reflecting lower partner demand.
Adjusted operating profit came in at £124.4 million, down from £161.8 million a year earlier, while adjusted pre-tax profit fell to £80.6 million from £120.7 million.
Completions slipped 12% year-on-year to 6,889 units, though the average selling price rose 4% to £283,000. Group adjusted revenue declined 6% to £1.85 billion.
Net debt improved, standing at £293.1 million at the end of June, compared with £322 million a year earlier, and was well below expectations. The company also refinanced £900 million of facilities, extending them to 2028.
Vistry’s forward order book was £4.3 billion as of early September, down from £5.1 billion the previous year, with 88% of full-year sales already secured.
The company maintained its full-year guidance, expecting a year-on-year increase in profits for full-year 2025 (FY25).
Chief Executive Greg Fitzgerald said the first-half performance was in line with forecasts and highlighted that completions and profits are set to step up in the second half.
He also stressed the group’s strong pipeline and debt reduction progress, adding that Vistry is “uniquely placed to maximise” opportunities from the government’s new Social Affordable Homes Programme.
"With 1H25 EBIT and net debt already reported, the biggest take-away from this update is the reiteration of guidance for FY25 Adj PBT to be ahead YoY," Jefferies analyst Glynis Johnson said in a note.
"There still remains much to do, with 70% of the FY25 guidance to be delivered in 2H25. But at 88% forward sold for FY25 (while still a touch below last year’s 91%) this forward-sold position has picked up YoY through the summer months (albeit against easy comps)," he added.