Vistry Group PLC (LSE:VTY) reported a 35% fall in profits for last year, which was slightly better than it had previously indicated due to the accounting treatment of major cost overruns in its southern division.
Adjusted profit before tax was £263.5 million in the 2024 calendar year, down 35% on 2023, but better than the circa-£250 million it guided to in January.
Revenue rose 7% to £4.3 billion, slightly below guidance.
Cost issues in the southern division had a total impact of £165 million, but the FTSE 250 group adjusted the phasing of the impact so that the net impact on 2024 adjusted profit before tax has been revised to £91.5 million from the previously expected £105 million.
With net debt having doubled to end the year at £180.7 million, Vistry did not announce an extra dividend or share buyback and said it is looking at potential sales of its former housebuilding landbank and expects to deliver improved cash generation and reduce net debt this year.
It is also targeting around a £200 million reduction in excess working capital in 2025, with tighter cash controls introduced at a site level.
CEO Greg Fitzgerald admitted it was a "challenging year" and a "disappointing financial performance", despite growth in completions and revenue.
"We have concluded a rigorous set of reviews and year end procedures with no further issues being identified, and much work has been done to ensure the group has the right people, structure, systems and controls in place to move forward with confidence."
He noted the government this week brought forward a further £2 billion of funding for affordable homes, an area in which Vistry is one of the leading players, via its Partnerships business.