Vistry Group (VTY) H1 2025 earnings summary

Executive summary

• Half-year results met expectations, with profits on track to increase in FY25 and a strong pipeline for H2 2025.

• Net debt at half-year reduced to £293 million, significantly better than forecast.

• Successful refinancing extended £900 million in facilities to April 2028 on unchanged terms.

• Strategic focus on affordable housing partnerships, leveraging the £39 billion government funding and a market-leading position.

• Strong customer satisfaction and robust forward-sold position, with 88-89% of FY25 partner-funded sales forward sold.

Financial highlights

• Adjusted revenue down 6% year-on-year to £1,853.2 million; total completions fell 12% to 6,889 units.

• Adjusted operating profit declined 23% to £124.4 million; adjusted profit before tax down 33% to £80.6 million.

• Gross margin held at 6.7%, matching H2 2024; operating margin declined from 8.2% to 6.7%.

• Adjusted EPS fell 30% to 17.6p; reported EPS down 53% to 9.5p.

• Net cash outflow for H1 improved to £112.4 million from £233.2 million in H1 24.

Outlook and guidance

• Confident in full-year profit growth for FY25, with 88-89% of partner-funded sales already forward sold and a £4.3 billion forward order book.

• Margin recovery expected in H2 as higher-margin sites come on stream and legacy low-margin sites roll off.

• Guidance for 2025 and 2026 remains unchanged, with consensus for 2026 up over 20% and further step-up in 2027.

• Net debt expected to decrease by year-end 2025.

• Focus on improving Open Market sales rate in H2, mindful of ongoing macroeconomic uncertainties.