Vistry Group Plc (LON:VTY) has announced its half year results for the period ended 30 June 2025
Vistry uniquely positioned to support delivery of new Social and Affordable Homes Programme
Full year guidance unchanged
Greg Fitzgerald, Chief Executive commented:
“The Group’s first half performance was in line with expectations and we are well positioned to deliver for the full year. Working with our partners, we have a strong pipeline of development opportunities which will drive our second half performance, with an expected significant step-up in completions and profits.
The Group also made good progress with its target of reducing debt levels, with net debt as at 30 June of £293m significantly better than expectations.
The new Social Affordable Homes Programme provides an unprecedented level of funding for affordable housing over the next 10 years. Through our Partnership model and commitment to mixed tenure development, Vistry is uniquely placed to maximise this opportunity and play a key role in delivering high-quality affordable homes across the country.”
| £m unless otherwise stated | H1 25 | H1 241 | Change |
| Adjusted basis2 | |||
| Total completions (units) | 6,889 | 7,792 | -12% |
| Revenue | 1,853.2 | 1,974.5 | -6% |
| Operating profit | 124.4 | 161.8 | -23% |
| Operating profit margin | 6.7% | 8.2% | -1.5ppts |
| Profit before tax | 80.6 | 120.7 | -33% |
| Basic earnings per share | 17.6p | 25.2p | -30% |
| Return on capital employed | 9.6% | 12.8% | -3.2ppts |
| Reported basis | |||
| Revenue | 1,635.6 | 1,723.5 | -5% |
| Operating profit | 58.1 | 114.1 | -49% |
| Profit before tax | 40.9 | 91.2 | -55% |
| Basic earnings per share | 9.5p | 20.3p | -53% |
| Net debt | 293.1 | 322.0 | -9% |
1As disclosed in the FY 24 results, the H1 24 figures have been restated to reflect cost forecasting issue in the South Division. This adjustment reduced both adjusted and reported profit before tax for H1 24 by £65.5m.
2Adjusted measures are defined and reconciled to the nearest statutory measure in note 19 of the condensed financial statements.
Highlights
· Group delivered adjusted operating profit of £124.4m (H1 24: £161.8m) and adjusted profit before tax of £80.6m (H1 24: £120.7m), in line with expectations
· Reported operating profit was £58.1m (H1 24: £114.1m) and reported profit before tax was £40.9m (H1 24: £91.2m)
· Total completions of 6,889 (H1 24: 7,792) units, 12% down on the prior year, reflecting the expected lower level of partner demand in the first half
· Total average selling price increased by 4% to £283k (H1 24: £273k) reflecting changes in mix with Group adjusted revenues of £1,853.2m (H1 24: £1,974.5m), down 6% on prior year
· Net debt as at 30 June 2025 of £293.1m (30 June 2024: £322.0) significantly lower than expectations and down on the prior year despite a £91.9m higher year-on-year opening position
· Successful completion of refinancing, with £900m facilities extended to April 2028 on unchanged terms and with strong support from our lending group
New Social and Affordable Homes Programme
· Government announced an unprecedented £39 billion, 10-year Social and Affordable Homes Programme in June, together with a 10-year social rent settlement and consultation on social rent convergence
· Vistry’s unrivalled capability and proven track record in partnerships housing delivery, uniquely positions us to play a key role in delivering the new Social and Affordable Homes Programme
· The Group has been working closely with its affordable housing partners to identify development opportunities and has built a strong pipeline of transactions that are expected to complete in the second half, with positive momentum going into 2026
· Group’s recently announced long-term joint venture with Homes England will accelerate the development of large-scale residential sites across the country
Current trading and outlook
· Group’s forward order book totals £4.3bn (5 Sept 2024: £5.1bn) with the Group 88% forward sold for FY 25. Of this 89% of the Partner Funded sales are forward sold, with more than 100% of the balance of Partner Funded units for the full year covered in our deal pipeline
· Looking to drive an improvement in our Open Market sales rate in H2 through our sales and marketing initiatives, albeit we remain mindful that demand will continue to be influenced by macroeconomic uncertainties
· Group’s focus on cash performance, including the management of work in progress, is expected to result in a year-on-year reduction in the Group’s net debt position as at 31 December 2025
· Guidance for the full year remains unchanged with the Group expecting to deliver a year-on-year increase in profits in FY 25
There will be an investor and analyst presentation at 8:30am today at Deutsche Numis, 45 Gresham St, London EC2V 7BF. There will also be a live webcast of this event available on our corporate website at www.vistrygroup.co.uk or via the following link https://brrmedia.news/VTY_HY25
A playback facility will be available shortly afterwards.
