Vistry Group (VTY) Trading Update summary

Financial performance and trading update

• Adjusted profit before tax for FY24 expected at £250 million, down from £419.1 million in FY23, in line with revised guidance after cost issues and delayed deals.

• Total completions rose 7% to 17,200 units, with adjusted revenues up 9% to £4.4 billion; partner-funded completions up 18% to 12,600 and now 73% of total.

• Open market completions fell 15% to 4,600 units, with average selling price stable at just under £390,000, supported by incentives averaging 5%.

• Net debt at year-end was £20 million, significantly lower than guidance, but working capital and stock levels were higher than desired.

• South Division cost issues led to a £105 million impact on FY24 profit, with further impacts expected in FY25 and beyond; group-wide control enhancements implemented.

Strategic and operational developments

• Over 220 new partner agreements concluded in 2024, including more than 70 in Q4, with strong relationships maintained despite delays.

• Divisional restructuring reduced six divisions to three, each led by executives with partnership experience, aiming for shorter reporting lines and closer operational oversight.

• Budgets are being finalized under the new structure, with a renewed emphasis on cash generation and operational discipline.

• Strong pipeline of 16,500 new land and development opportunities across 61 sites, with over 90% of land for FY25 completions already secured.

• Focus on investing in Partnerships business while maintaining a strong balance sheet.

Market outlook and guidance

• Partner-funded market outlook is positive, with government spending review and new affordable housing program expected to unlock further opportunities.

• Open market demand assumed to remain at 2024 levels; recovery depends on consumer confidence and interest rate cuts.

• Profit and cash generation expected to improve in 2025, with more detailed medium-term targets to be provided in March.

• Land market is soft, with expectations for falling land prices and improved payment terms in 2025.

• Expecting low single-digit build cost inflation in FY25, with mitigation through scale and efficiency.