U.K. — Vistry Group expects to report a pre-tax loss of £30 million for the first half of the year. The company attributed this expectation to weakening market conditions and lower consumer confidence, citing increased uncertainty from the conflict in the Middle East.

Shares in Vistry Group fell 8% following the announcement and the departure of its finance director. The company's share price has lost nearly two-thirds of its value over the past year. Vistry Group issued multiple profit warnings in 2024, primarily due to losses in its southern division. The company and its Countryside Partnerships division face a multibillion-pound class action lawsuit alleging collusion to inflate home prices.

In response to market conditions, Vistry Group is implementing measures to reduce annual costs by £25 million through voluntary redundancies and more selective hiring. Less than 5% of its 4,400-employee workforce has applied for voluntary redundancy. The company reduced its inventory of unsold private homes from £600 million at the start of the year to under £300 million. This reduction included offering an average discount of 7.1% to private buyers, compared to 1.4% in the first half of the previous year. Vistry Group stated that £190 million of this inventory reduction is expected to be realized through sales completing by December.

Adam Daniels has served as chief executive of Vistry Group for three months. Tim Lawlor, the company's chief financial officer, will leave in October after four years to take a role in a different sector. Vistry Group is negotiating new framework deals with 10 of its main partners for social homes and has slowed or delayed construction on some sites. The company stated it does not anticipate a significant change in open market conditions for the remainder of the year or in early 2027.

Why It Matters

Vistry Group's projected first-half loss and declining share value reflect challenges in the housing market. The company's response includes cost reductions, leadership changes, and inventory adjustments. A pending class-action lawsuit introduces additional financial considerations for the company.