Vistry Group PLC (LSE:VTY) shares rose 2.9% after it reported lower profits, as expected, and reiterated guidance that the full year will be more weighted to the second half than usual as government funding begins for the Affordable Homes Programme.
House completions of 6,800 were made in the first half of 2025, down 13% on last year, with 73% funded from collaborations for its Partnerships arm.
Adjusted pre-tax profit came in at roughly £80 million, down from £121 million on a restated basis last year.
Chief executive Greg Fitzgerald said: "I am pleased to report that the group has delivered first half profits in line with expectations, which underpin the Board's confidence in its full-year outlook."
Net debt at 30 June was approximately £295 million, down from £322 million a year earlier, despite starting the year with a higher opening balance, while the refinancing of its £500 million revolving credit facility and £400 million term loan was completed.
The government’s £39 billion Affordable Homes Programme was welcomed by Vistry, which expects to play a key role in its delivery and said this funding will begin to positively impact results in the second half.
The forward order book stood at £4.3 billion, excluding any benefit from the new funding.
Vistry said yesterday that it will contribute £12.8 million as one of seven housebuilders offering a £100 million payment as a settlement to end the UK Competition and Market Authority’s investigation into the sharing of commercially sensitive information.
The company remains on track to increase profits year-on-year in 2025, with strong momentum and a solid deal pipeline supporting the second half.
Vistry operates a partnerships-led model and is focused on cash generation and reducing its owned landbank in line with a capital-light strategy.