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(Sharecast News) - Vistry shares slid on Monday following a report the housebuilder has offered voluntary redundancies to employees as it tries to preserve cash to shore up its business.
According to the Financial Times, which cited a message sent to employees by the chief executive and people familiar with the matter, Vistry emailed employees this week offering redundancy packages of up to two months' pay plus another payment. It was not clear how many employees received the offer.
Some of the people familiar with the company told the FT that Vistry has been managing its cash flow on a daily basis. The housebuilder warned last month that its efforts to generate cash will significantly reduce profits in the first half of the year.
It has been offering discounts and incentives to drive sales of homes on low-margin sites and those nearing completion in a sluggish housing market. It also said it would pause its share buyback to help reduce debt.
According to the FT, the email said: "We have been listening carefully to feedback from across the business . . . most colleagues feel proud of the work we do [and] value the contribution they make. However, there are also colleagues who feel less connected to Vistry's direction or less certain about their future here.
"We are therefore introducing the [voluntary exit scheme] to provide an opportunity for colleagues who feel that their future may lie outside Vistry to apply to leave the business on enhanced terms."
The email said employees can apply until 23 June.
A person familiar with the plans told the FT: "This is an entirely voluntary scheme for colleagues who feel their future may lie outside the business. There is no requirement or expectation for any colleague to participate."
Vistry said: "We have made it clear that we are prioritising cash generation and are taking decisive steps to reduce debt levels. While current market condition[s] are challenging for all companies in our sector, we continue to build at scale and pace, delivering the homes this country so desperately needs."
At 1005 BST, the shares were down 4.5% at 230.80p.
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