By Shashwat Awasthi and Aby Jose Koilparambil
(Reuters) – British homebuilder Vistry did not pay a final dividend and said it would look to save about 200 million pounds ($258.1 million) this year after its annual profit slumped 35%.
Shares of UK’s biggest homebuilder by yearly output slipped more than 6% to 607.5 pence in early trading on Wednesday.
Vistry endured a tough 2024 during which it issued three profit warnings, streamlined its operating model, and struggled with cost overruns.
Its adjusted pre-tax profit was 263.5 million pounds for the year ended December 31, 2024, compared with 407.3 million pounds a year earlier, and slightly above the market view of 259.4 million pounds.
Its net debt more than doubled to 180.7 million pounds, as it navigated through multiple issues including delayed partner agreements, abandoned projects and slower open-market completions.
“Demonstrating that the group retains a strong financial position remains a top priority for 2025,” Chief Executive Greg Fitzgerald said in an earnings statement.
UK homebuilders have been guarded in their outlook for near-term demand despite relatively good sales momentum in early 2025, as nagging inflation and uncertainty about economic growth and the pace of interest rate cuts dampen buyers’ confidence.
While Vistry said sales year-to-date were lower than last year, it forecast “year on year progress in profit” for 2025, partly boosted by the UK government’s 2-billion-pound pledge to build up to 18,000 social and affordable homes in England.
It expects earnings to be more weighted towards the second half of the year than in the prior years profit in the first half would be dented by actions taken to accelerate cash generation.
“Performance is expected to improve as the year progresses, but given its recent series of missteps, management will have to start delivering more good news if they want to rebuild investors’ confidence,” Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said in a note. (This story has been refiled to remove the picture)
