Vistry looks to turn the corner as housing policy shifts into focus

Vistry reported slightly lower full-year revenue and a small rise in adjusted pre-tax profit, and welcomed the government's £39 billion, ten-year Social and Affordable Homes Programme which aligns with its Partnerships strategy.

Vistry is reporting signs of improvement after a weak first half of the year. The company welcomed the government's £39 billion, ten-year Social and Affordable Homes Programme, which aligns with its Partnerships work with local authorities and housing associations. It has secured a £50 million grant from Homes England that it expects around the middle of the year. Financial metrics for the year show modest shifts that management says are helping to rebuild the group's position. Key details: - Full-year revenue is expected to be marginally lower at £4.2 billion versus £4.3 billion previously. - Adjusted pre-tax profit is estimated at about £270 million, up from £263.5 million in the prior period. - Completions fell to 15,700 homes from 17,225, with Partner-funded demand affected earlier in the year. - The forward order book stands at approximately £4 billion, providing visibility on future work. - The group increased use of timber-frame offsite construction (4,600 units versus 2,900 previously), which coincided with an improvement in operating margin from 6.7% to 8.4%. - Net debt fell from £180.7 million to £145 million, the dividend remained suspended, and the group bought 12,600 plots during the year (9,500 in the second half). Summary: The government's Social and Affordable Homes Programme reinforces Vistry's Partnerships focus and the group expects the Homes England grant to arrive mid-year. Operational changes, including greater use of offsite timber-frame construction, were associated with improved margins and reduced net debt. Market reaction remains cautious after earlier profit warnings and a loss of FTSE 100 membership, leaving investor confidence to be rebuilt over time.