Vistry Group's shares drop over 16% due to profit downgrade and rising net debt

From Investing.com: 2024-12-24 03:37:38

Shares of Vistry Group (LON:) plummeted over 16% after announcing a profit downgrade for fiscal year 2024, expecting adjusted profit before tax to be around £250 million instead of the previously forecasted £300 million. Delays in key transactions and completions contributed to the profit warning.

Several agreements with partners initially planned for FY24 have been delayed to FY25, with the company opting out of certain transactions due to unfavorable terms. Despite setbacks, Vistry remains positive about future opportunities, highlighting continued demand from partners and the completion of over 70 Partner Funded transactions in Q4.

The profit impact of delays is reflected in Vistry’s net debt position, which is now expected to be around £200 million by year-end. Although there was a significant cash inflow in the final weeks of the year, postponed income has led to a higher debt load than anticipated.

Vistry’s executive chairman and chief executive, Greg Fitzgerald, expressed disappointment in the financial outcome for FY24 but emphasized the company’s commitment to delivering high-quality homes to address the country’s housing shortage. The company looks forward to seizing more attractive opportunities in the upcoming year.



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