Vistry Group Scraps Dividend as Profits Fall Sharply

The housebuilder Vistry has cancelled its final dividend following a significant decline in profits. The company released a series of profit warnings over the autumn and winter, revealing it had underestimated by £165 million the costs associated with developing nine sites in southern England.

Despite an increase in the number of homes built—17,225 in the past year compared to 16,118 in the previous one—Vistry’s revenues rose only 7 per cent to £4.33 billion from £4.04 billion. The pre-tax profit for the year stood at £104.9 million, a substantial two-thirds drop from the £293 million profit recorded in 2023.

As a result of this dismal performance, Vistry, which typically favours returning funds to shareholders through buybacks rather than dividends, announced it would withhold a final distribution this time around, having paid out £110 million a year ago.

Chief Financial Officer Tim Lawlor noted that an interim distribution later this year seems increasingly unlikely. Chief Executive Greg Fitzgerald expressed disappointment regarding the financial results and stated that the company has undergone rigorous reviews and procedures to identify any further issues.

Vistry has implemented several changes, including an enhancement of Fitzgerald’s control, the elimination of the chief operating officer role, and a directive for divisional heads to report directly to him. Employees are required to be onsite or in the office five days a week, signalling a shift towards a more rigorous operational structure.

Currently, about two-thirds of Vistry’s projects cater to housing associations or institutional landlords. This transition from the private for-sale market towards a partnerships model aims to create a more resilient business structure, allowing the company to operate with guaranteed buyers that also fund construction efforts.