5th Nov 2026 17:39
(Alliance News) - Vistry Group PLC on Thursday said current trading remained tough in its open market business as it pressed ahead with restructuring plans aimed at improving cash generation and reducing debt.
In a trading update for the period since the start of July, the Kings Hill, England-based housebuilder said open market conditions remained difficult, reflecting affordability constraints, cautious consumer sentiment and wider economic uncertainty.
Partner-funded activity was gradually building, although some transactions had been pushed back to later in the fourth quarter.
In September, Vistry reported a pretax loss of GBP661.3 million for the first half, swinging from a pretax profit of GBP40.9 million. The company's net debt rose to GBP468.8 million at June 30 from GBP144.2 million at the end of 2025.
Cash generation and debt reduction remain the company's immediate priorities, with Vistry having begun refinancing its GBP900 million term loan and revolving credit facility.
Average daily net debt in the second half is expected to be around GBP800 million, reflecting the movement of some partner-funded transactions into later in the fourth quarter. However, the group expects year-end net debt to fall within analysts' forecast range of GBP7 million to GBP130 million of net cash. Net debt at 31 December 2025 was 144.2 million and GBP180.7 million at 30 December 2024.
Restructuring efforts include headcount reduction and a cut in operating regions to 12 from 25. The new structure is expected to be operational from January, with GBP50 million of cost savings targeted in 2027.
The company also said it has secured a GBP350 million direct grant award under the government's social & affordable housing programme, supporting its pipeline of affordable housing opportunities.
Vistry said its forward order book stood at GBP3.1 billion under its revised definition.
Chief Executive Adam Daniels said the measures would establish a smaller, more focused and disciplined business.
Vistry shares were down 5.7% at 273.60 pence on Thursday afternoon in London.
By Niall Holden, Alliance News reporter
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