Vistry Group (VTY) Trading update summary

Strategic and operational actions

• Priorities remain cash generation, lower leverage, stronger operational control and reduced complexity, with tight commercial discipline.

• Operating regions are being reduced from 25 to 12; new management teams are in place, with the structure expected to be operational from January.

• Headcount reduction and restructuring have begun; progress is being made toward £50m of FY27 savings.

• Helen Miles will join as CFO in 2027; Robert Allen has been appointed interim CFO.

• Land-bank reshaping has begun, with transactions well progressed and scheduled to complete before year-end.

Debt reduction and refinancing

• Average daily net debt in H2 is expected to be ~£800m, reflecting market conditions and a limited number of Partner Funded transactions moving to later in Q4.

• Year-end net debt is expected to be within analysts’ expectations; the cited 2026 forecast range is £(7)m to £(130)m.

• Refinancing has begun for the £900m term loan and RCF; the FY27 and longer-term objective is to reduce average daily net debt as the land bank and capital employed are reduced.

• Lower Open Market work in progress, land-bank value realisation and improved Partner Funded terms are expected to support cash generation in the rest of FY26.

Trading and market conditions

• Open Market trading remains challenging amid affordability constraints, cautious consumer sentiment and macroeconomic uncertainty; pricing, incentives and build rates are managed by site and demand.

• Partner Funded activity is gradually building, supported by the first SAHP 2026–2036 allocations; the £350m direct grant award and partner allocations support an affordable-housing pipeline.

• Revised contracting criteria prioritise appropriate commercial terms, cash generation and returns over volumes.

• The forward order book, under the revised definition, stands at £3.1bn.

• The ‘Your First Home’ initiative may leave first-time buyers uncertain in the near term; from April 2027, zero-rate VAT will apply to land sold to Registered Providers.