Vistry’s first-half average weekly sales rates rose 2% to 1.03. This was helped by discounts on private sales increasing from 1.4% to 7.1% of book price as the group looked to speed up sales and bring in more cash.
Around 6,100 new homes were built in the period, 11% below market forecasts. The order book declined 9% to £3.9bn.
The net debt position stood at £470mn at the half-year mark. Build cost inflation is stabilising at around 3-4%.
First-half pre-tax losses are now expected to be around £30mn, and full-year underlying pre-tax profit guidance was downgraded from around £223mn to £200mn. Both metrics exclude the impact of the ongoing CEO review, which is expected to lead to further one-off profit impacts.
The group expects its net cash position to be in excess of £100mn by year-end.
The shares fell 12% in early trading.
Our view
HL view to follow.
Vistry key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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