UK's Vistry warns on profit, to slow house building in blow to shares

* Vistry pauses share buybacks, forecasts lower profit

* Sales rose 32% YTD via incentives, but ​demand ‌slowed

* CEO Daniels launches operational review

* Shares hit lowest level in more than ⁠14 years

May 13 (Reuters) - Vistry warned of lower annual ⁠profit on Wednesday and said ​it will slow building as the economic impact of the Iran War piled further pressure on the British house builder, knocking its shares to ​a ‌more than 14-year low.

It expects steps to boost cash flow to cut debt, including pausing share buybacks, delaying construction, adopting stricter land-buying criteria and offering deeper incentives to drag first-half profit "significantly" below previous years.

Adam ​Daniels, who became CEO last month, is conducting an operational review, Vistry ‌added in a statement, with the findings to be shared with its interim results in September.

The Iran ‌war is driving up costs of construction materials and dampening buyer interest, prompting similar warnings from Vistry's competitors Persimmon and Taylor Wimpey.

Vistry, which ​has faced months of subdued demand and doubts over its partner-funded model, now expects ‌full-year adjusted profit before tax toward the middle of analysts' forecasts of 168 million to 283 million pounds ($383.07 million).

It posted a profit of 268.8 ⁠million ⁠pounds last year.

Vistry said its overall sales ‌rate jumped 32% year-to-date through aggressive incentives, although activity has moderated.

"The events in the Middle ​East have ​started to create some upward pressure on material ‌and, to a lesser extent, labour prices which we expect to continue into H2," it said.

Vistry Grp

Persimmon

Taylor Wimpey