Vistry tomorrow ends a mixed week of the housebuilding sector while headwinds have been building for British Airways owner IAG and its clutch of airline assets... read more.
"Vistry Group PLC (LSE:VTY) is in the doghouse after a profit warning due to self-inflicted injuries and the market will want reassurance that it has got a handle on the cost overruns and that indeed they were a one-off, one-region issue.
Costs were said to have been understated by £115 million across nine developments within its southern division, with Vistry noting this would deal an £80 million blow to profit this year, before £30 million in 2025 and £5 million in 2026.
UBS, a seller, said the risks are if further cost issues are identified, or additional funding is needed.
“In that respect, we think ensuring confidence in the balance sheet strength is critical and investors may have been surprised that the £1bn shareholder return programme was reiterated by the company.
“The upside risk is the issues are truly one-off and Vistry can return to executing its growth and profit ambition (£800m EBIT by 2028).”"
Announcements due:
Trading updates: International Consolidated Airlines Group SA (LSE:IAG), Vistry Group PLC
Economic announcements: RICS House Price Balance (UK), University of Michigan Confidence (US)