14th Jan 2026 09:23
(Alliance News) - Vistry Group PLC on Wednesday said it is on track to meet 2025 profit guidance but cautioned market conditions remain "uncertain".
The Kent, England-based housebuilder said adjusted pretax profit is anticipated to be around GBP270 million in 2025, up 2.5% from GBP263.5 million in 2024, which it said is in line with expectations.
In November, the FTSE 250 listing said it was "confident" about delivering year-on-year profit growth for the full year.
Revenue in 2025 is expected of GBP4.2 billion, down around 3.0% from GBP4.33 billion in 2024, with total completions of 15,700, down 8.9% from 17,225 in 2024.
Average selling price is forecast up 2.5% at GBP282,000 from GBP275,000 mainly due to geographical mix.
Full year Partner Funded units reduced by 8.2% to 11,600 in 2025 from 12,633 the year prior mainly reflecting partners' funding uncertainty in the first half.
While Open Market sales conditions remained similar to 2024, Open Market units decreased by 11% to 4,100 from 4,592 due to lower sales outlets.
The group's sales rate for the year averaged 0.96, down from 1.07 in 2024, reflecting uncertainty driven by the budget causing a more subdued market in the third quarter and first half of the fourth quarter.
Operating margin improved in the second half of 2025, taking full year operating margin to 8.4% from 6.7% in the first half of the year.
"Strong margins enabled us to mitigate top line headwinds and reflects the focus within the business on driving improved site mix and cost management over the last 12 months," noted Chief Executive Greg Fitzgerald.
Build cost inflation was low single digit in 2025, Vistry added.
Vistry said it has taken "advantage" of a subdued land market, securing 9,500 plots in the second half of 2025, taking the full-year total to 12,600.
Group net debt at December 31 was around GBP145 million, down from GBP180.7 million in 2024, in line with guidance for a year-on-year reduction.
CEO Fitzgerald was "pleased" with the performance, noting a "particularly" strong second half despite "continued challenges in the Open Market and the uncertainty related to the November budget, which delayed the timing of some Partner Funded deals."
Nonetheless, shares in Vistry fell 7.6% to 630.98 pence each in London on Wednesday morning.
Vistry said it enters 2026 with a forward sales position totalling GBP4.0 billion compared to GBP4.4 billion a year ago, providing "strong coverage" for 2026 delivery.
The firm expects the Social and Affordable Homes Programme will drive increased activity, supporting growth with the grant funding timetable providing greater visibility in the second half.
Vistry expects pricing amongst PRS partners to strengthen in response to increased demand.
This, together with a "cautiously optimistic" view on the impact of lower interest rates on open market conditions, is likely to result in a second half weighting to performance again in 2026, albeit less pronounced than in 2025, the firm said.
"Whilst market conditions remain uncertain in the near term, further benefits of our cost, productivity and mix enhancement initiatives will support the delivery of good year-on-year financial and strategic progress," Vistry added.
By Jeremy Cutler, Alliance News reporter
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