Vistry Group PLC (LSE:VTY) reported a 55% drop in first-half profit before tax as completed sales dropped due to subdued demand from the housbuilder's housing association partners ahead of the government's spring spending review.
Profit before tax came in at £40.9 million for the first six months of 2025, down from £91.2 million the year before. On an underlying basis, operating profits were down 23% to £124.40 million.
Total sales completions declined 12% year-on-year to 6,889 units and adjusted revenue decreased 6% to £1.85 billion, despite average selling price rising 4% to £283,000.
Partner-funded homes accounted for 73% of completions, consistent with the past full year.
Net debt fell to £293.1 million, significantly better than expected and lower than the prior year, despite a higher opening balance. The group also completed a refinancing of £900 million in facilities, extended to April 2028.
Chief executive Greg Fitzgerald said: "The 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."
He highlighted opportunities arising from the government’s new £39 billion, 10-year Social and Affordable Homes Programme, saying the group is working with partners to build a pipeline of development transactions expected to complete in the second half.
This week also saw a joint venture formed with Homes England to support large-scale residential development.
The forward order book totalled £4.3 billion, with 88% of full-year revenue already forward sold.