Vistry Group PLC (LSE:VTY) has issued its third profit warning this year with the problems this time related to delays to completions and signing off transactions.
The housebuilder had already cut guidance twice due to cost overruns in its south division but reduced it by another £50 million today due to the delays.
Adjusted profit before tax for 2024 is now expected to be £250 million compared to the previous guidance of £300 million.
Vistry said several agreements with partners that were expected to complete this year have taken longer to conclude and will now come through in 2025.
In addition, it has pulled out of other deals where commercial terms on offer were not sufficiently attractive.
There has also been a delay to open market completions expected which has, to a lesser extent, contributed to the profit impact, said the statement.
Some 70 Partner Funded transactions with a range of 35 partners, including Registered Providers, Local Authorities and PRS providers have been concluded, it added, though there has been a cash impact from the delays.
Closing net debt will now be in the region of £200 million.
Greg Fitzgerald, executive chairman and chief executive said: "Today's announcement and the financial outcome for FY24 is disappointing.
“Our top priority for 2025 is to continue building and delivering high-quality mixed tenure new homes for our partners and private customers and to do our part in addressing the country's acute housing shortage.
“We remain committed to our partnership housing strategy and are firmly focused on positioning the business to move forwards and rebuild profitability. “
Full-year 2024 results will be published on 15 January.2025.
Shares fell 16% to 548p
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