Vistry Group (VTY) H1 2025 earnings summary

Executive summary

• Half-year performance met expectations, with profits on track to increase year-on-year in FY25 and stabilization after a challenging 2024.

• Net debt at half-year was £293m, significantly lower than anticipated, reflecting strong cash management.

• Successful refinancing extended debt maturity to April 2028 on unchanged terms, covering £900m in facilities.

• Strategic focus on affordable housing partnerships, leveraging unprecedented government funding and policy support, with a robust partnership model.

• Strong customer satisfaction and market-leading position in affordable housing partnerships.

Financial highlights

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

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

• Gross margin for H1 was 6.7%, matching H2 2024; operating margin impacted by lower volumes and higher low-margin sites.

• Net debt at £293.1m, down from £322.0m year-over-year; net cash outflow for H1 improved to £112.4m from £233.2m in H1 24.

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

Outlook and guidance

• Confident in delivering year-on-year profit growth for 2025, with 88% of partner-funded sales forward sold and a £4.3bn forward order book.

• Expecting a dramatic reduction in year-end net debt, with full-year average net debt slightly above £700m.

• Guidance for 2025 unchanged; margin recovery expected in H2 from new higher-margin developments and increased affordable housing activity.

• Anticipate further momentum in affordable delivery into 2026 and beyond, supported by government funding.

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