Vistry flags H1 loss and CFO exit

Vistry Group expects to report a loss before tax of approximately £30 million for the six months to 30 June 2026. Management said that excluding specific cash‑generation actions, the group would have generated about £20 million profit before tax in the first half. This indicates that one‑off and tactical measures had a material impact on reported profitability in the period.

The company quantified the effect of these actions at around £50 million. They included enhanced pricing discounts, accelerated asset sales and changes to site mix and build rates, together with one‑off impairments on sites with low or nil margins. These measures were taken to improve cash generation but came at the expense of short‑term earnings.

Vistry completed around 6,100 homes in the first half, compared with 6,889 a year earlier, highlighting a reduction in volumes. Alongside lower completions, the group experienced increased pressure on pricing in its private housing operations. Average discounting on private sales deepened to about 7.1% in the period, up from roughly 1.4% a year earlier.

The widening of discounts contributed to the earnings impact from the cash‑generation strategy. The shift in site mix and build rates, together with impairments on low‑margin developments, further weighed on performance. These trends underscore the trade‑off between supporting sales and cash flow and preserving near‑term profitability.

Vistry announced that Chief Financial Officer Tim Lawlor has decided to step down from his role. He will remain in post until October to support an orderly transition to his successor. The change in the finance leadership comes as the business manages a period of earnings pressure and strategic repositioning.

New chief executive Adam Daniels, who is overseeing the transition, is treating 2026 as a year of adjustment for the group. He is conducting a CEO review of Vistry’s strategy and execution, with findings expected to be revealed in September. The review is intended to set the direction for the business beyond the current transition phase.

Vistry has flagged annual overhead savings of around £25 million. Cost actions implemented this year are expected to deliver a full‑year benefit in 2027, indicating that the financial upside from these initiatives will be more visible over the medium term. These savings form a key part of management’s response to the current earnings environment.

The group has also focused on strengthening its balance sheet and improving cash metrics. It has more than halved the value of unsold private homes under construction, reducing this to below £300 million. Net debt stood at about £470 million at the end of June, with average daily net debt during the half of around £799 million, reflecting the scale of the group’s financing requirements as it executes its cash and cost strategy.