Vistry Shares Tumble: Company Cuts FY24 Profit Guidance Again

Vistry Group (LON: VTY) shares plummeted over 18% in early Tuesday trading after the company announced another reduction in its profit forecast for the 2024 financial year.

This represents the third profit warning issued by the company this year.

Adjusted profit before tax is now expected to be approximately £250 million, down from the earlier guidance of £300 million.

The homebuilder attributed the profit shortfall to delays in year-end transactions and completions.

They explained that several agreements with partners, initially anticipated to conclude in FY24, are now projected to complete in FY25.

Additionally, the company said it opted not to proceed with certain transactions due to unattractive commercial terms, believing better opportunities will emerge next year.

Vistry also experienced delays in some open market completions, further contributing to the profit decline.

Despite the challenges, Vistry noted there has been “good demand” from its partners in the fourth quarter and has concluded more than 70 Partner Funded transactions with a range of 35 partners.

Net debt is expected to close at around £200 million due to deferred income.

Executive Chairman and Chief Executive Greg Fitzgerald acknowledged the disappointing results, stating, “Our top priority for 2025 is to continue building and delivering high-quality mixed tenure new homes for our partners and private customers, and to do our part in addressing the country's acute housing shortage. 

“We remain committed to our partnership housing strategy and are firmly focused on positioning the business to move forwards and rebuild profitability.”