Vistry Group (VTY) Trading Update summary

Financial performance and outlook

• Adjusted profit before tax expected at £270 million, up from £263.5 million, meeting expectations and in line with guidance.

• Operating margin improved to 8.4% for the year (H2: 9.6%), driven by higher-margin developments and cost management.

• Revenue remained broadly flat at £4.2 billion, with lower completions offset by higher average selling prices and increased land sales revenue.

• Net debt reduced to around £145 million at year-end 2025, with further reductions targeted for 2026 and a goal to reach net cash by year-end.

• Forward sales position is strong at £4 billion, with about £2.4–2.5 billion for 2026, providing higher visibility than the prior year.

Strategic initiatives and market positioning

• Completed business stabilization and reorganization in early 2025, resulting in a leaner, more efficient operation.

• Secured 12,600 plots in FY25, with 9,500 acquired in H2, capitalizing on a subdued land market.

• Pursuing Strategic Plus partner status with Homes England, aiming for a significantly larger share of affordable housing funding.

• Shifted focus from PRS to housing associations, with a 30% growth in additionality units from housing associations in H2 2025, and expect this trend to continue.

• Land sales contributed £200 million in revenue and £30–40 million in profit, with a cleaner land bank after divesting legacy sites.

Operational and market trends

• Margins improved due to higher-margin developments, better tenure mix, and cost issue resolutions, especially in the South Division.

• Build cost inflation remained low (1–2%), with internal targets for negative build inflation due to strong subcontractor relationships and market conditions.

• PRS deal discounts narrowed from over 15% to 5–11% in H2 2025, with more cash received upfront.

• Sales outlets expected to remain stable in 2026, with no significant change from 2025.

• Incentives on open market sales held at up to 6%, with hopes to reduce this in 2026 if market conditions improve.