{"id":37940,"title":"Vistry Group Issues Third Profit Alert as Project Delays Impact Year End Financials","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2024-12-27T07:00:42+00:00","modified":"2024-12-27T07:00:42+00:00","canonical_url":"https://stockmark.it/vistry-group-issues-third-profit-alert-as-project-delays-impact-year-end-financials/","markdown_url":"https://stockmark.it/vistry-group-issues-third-profit-alert-as-project-delays-impact-year-end-financials.md","json_url":"https://stockmark.it/vistry-group-issues-third-profit-alert-as-project-delays-impact-year-end-financials.json","category":"Construction Industry","categories":["Construction Industry","Housebuilding","Property"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/new-home-building-persimmon.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"British housebuilder Vistry Group has delivered a devastating blow to investors with its third profit warning in as many months, sending shares plummeting on the final trading day before the Christmas break.\n\nThe FTSE 250 company revealed that its adjusted pre-tax profit for 2024 would fall £50 million short of previous guidance, settling at £250 million. The announcement triggered an immediate market reaction, with shares tumbling as much as 18 per cent to reach a four-year low before stabilising at 548p, down 16 per cent.\n\nThe troubled builder, which recently departed from the FTSE 100, attributed the profit shortfall to significant delays in transaction completions and partnership agreements. The company’s strategic pivot towards building homes for institutional partners, including local authorities and housing associations, was designed to provide greater financial certainty through pre-arranged sales agreements.\n\nChief Executive Greg Fitzgerald acknowledged the disappointing performance, stating that 2024 had fallen short of expectations. The company’s net debt is now projected to reach £200 million by the financial year-end in January, reflecting the delayed income from postponed completions.\n\nThe timing of this announcement, coming on Christmas Eve, has raised eyebrows among industry analysts. Aynsley Lammin from Investec highlighted concerns about the operational and financial stability of the group, noting that some projects were abandoned due to unfavourable commercial terms.\n\nThis latest setback follows October’s revelation of underestimated building costs in southern England and November’s external review, which uncovered more widespread cost overruns than initially reported. The company plans to provide a comprehensive trading update on 15 January, as the broader housing sector grapples with planning restrictions and elevated mortgage rates."}