What is the main topic?

The main topic is Vistry Group's forecast and restructuring amid uncertain UK housing market conditions.

How has Vistry's stock been affected?

Vistry's stock rose by 10% following positive UK inflation data but has slumped about 38% in 2024.

What changes has Vistry implemented?

Vistry has reduced its operating divisions from six to three to streamline operations.

Editorial & Advertiser disclosure

Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home > Finance > British homebuilder Vistry warns of uncertain market conditions

Finance

British homebuilder Vistry warns of uncertain market conditions

Published by Global Banking & Finance Review®

Posted on January 15, 2025

2 min read

Last updated: January 27, 2026

Graph illustrating Vistry's financial outlook amidst uncertain market conditions - Global Banking & Finance Review — This image depicts a financial graph related to Vistry's profit warnings and market conditions. It highlights the challenges faced by the UK housing sector, including affordability and economic issues, which are central to the article's analysis.

Vistry Group Cautions on UK Housing Market Conditions

By Aby Jose Koilparambil and Chandini Monnappa

(Reuters) - UK housebuilder Vistry kept its 2024 earnings forecast on Wednesday after issuing three profit warnings since October, and said it would reduce its operating divisions from six to three.

The company cautioned that market conditions remained uncertain as the housing sector navigates affordability and broader economic issues.

While the pace of recovery of the British housing sector has been in doubt due to slower-than-expected interest rate cuts, tax rises and higher labour costs, a surprise fall in December inflation and banks resisting mortgage rate hikes are expected to benefit the sector.

Vistry shares were up as much as 10% to 566.50 pence by 1055 GMT on Wednesday, as housing stocks benefited from UK's inflation data.

Vistry's stock slumped about 38% in 2024.

"It is a relief rally (for Vistry)... the whole sector is up on better inflation data, and the restructuring brings decision-making under better control," Aynsley Lammin of Investec said.

In October and November, Vistry warned of lower annual profits from cost overruns in its South Division, which it said would have a 165 million pound ($201.7 million) impact. It issued another profit warning in December.

The company on Wednesday said it had streamlined its operational structure, reducing its divisions from six to three.

The Kent, England-based company said it expects adjusted pre-tax profit of about 250 million pounds and annual revenue of around 4.4 billion pounds, surpassing market expectations of 4.05 billion pounds.

Vistry's net debt position at year-end stood at 180 million pounds, 20 million pounds lower than its forecast, while completions rose 7% to 17,200 homes.

On Tuesday, peer Persimmon forecast 2024 earnings at upper end of market view, buoyed by improved sales and pricing strength.

($1 = 0.8181 pounds) (This story has been corrected to remove the references to cost cuts in paragraph 1)

(Reporting by Aby Jose Koilparambil and Chandini Monnappa in Bengaluru; Editing by Sherry Jacob-Phillips and Jan Harvey)

British homebuilder Vistry warns of uncertain market conditions

Quick Summary

Vistry Group Cautions on UK Housing Market Conditions

Key Takeaways

Frequently Asked Questions about British homebuilder Vistry warns of uncertain market conditions