Vistry warns on profits, pauses buyback amid volatile markets

(Sharecast News) - UK housebuilder Vistry on Wednesday said it expected first half profits to be "significantly" lower than last year and paused its share buyback as it focused on cash generation and cutting debt.

In a trading update, Vistry added that it expected the second half to be in line with 2025, driven by a step up in demand for affordable housing, but noted that the level of macro-economic uncertainty has increased since the start of the Iran war, "and with it the range of potential outcomes for the current year".

It would now slow construction on some sites and adopt "higher hurdles" for land buying as while conditions remain volatile.

"The use of increased incentives and discounts has been more significant on low margin sites and developments that are nearing completion, resulting in an earlier recognition of profit impacts and a higher weighting of the overall profit impact in the first half than previously anticipated. We expect the level of discounting and its effect on profit to reduce in the second half of the year," the company said.

Vistry now expects full-year adjusted profit before tax toward the middle of analysts' forecasts range of £168m - £283m.

Reporting by Frank Prenesti for Sharecast.com

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