REG - Vistry Group PLC - Trading update

VistryAnnouncement

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RNS Number : 7642O  Vistry Group PLC  14 January 2026

14 January 2026

Vistry Group PLC

Trading update

 

Strong second half performance, full year profit growth

Vistry Group PLC ("Vistry" or the "Group") is issuing a scheduled trading
update for the year ended 31 December 2025 ("FY25"), ahead of publication of
its full year results on 4 March 2026.

FY25 highlights

·    Group adjusted profit before tax is anticipated to be around £270m
(FY24: £263.5m), in line with expectations

·    Demonstrating the resilience of our differentiated strategy in a
challenging private sales market, revenue was broadly flat at £4.2bn with
total completions of c. 15,700 (FY24: 17,225)

·    Strong operating margin progression in H2, full year operating margin
of 8.4% (H1: 6.7%)

·    Allocated maximum award of £50m from Homes England as part of the
£2bn of additional grant funding for FY21-26, reflecting our performance as a
Strategic Partner, expected to be received during Q2 2026

·    Active investment in attractive new land and development
opportunities in H2 taking advantage of a subdued land market, securing 9,500
plots in H2 (FY25:12,600)

·    Group net debt position as at 31 December 2025 of c. £145m (31
December 2024: £180.7m), in line with guidance for a year-on-year reduction

 

Greg Fitzgerald, Chief Executive commented:

"I am pleased that we delivered on our full year guidance, with a particularly
strong second half performance despite continued challenges in the Open Market
and the uncertainty related to the November Budget, which delayed the timing
of some Partner Funded deals. Strong margins enabled us to mitigate top line
headwinds and reflects the focus within the business on driving improved site
mix and cost management over the last 12 months.

Our partnership housing strategy positions us well to play a key role in the
delivery of the Social and Affordable Homes Programme (SAHP) 2026-2036. We
will be targeting early deployment of allocations for our partners and
ourselves to kick start the growth of affordable housing supply and we expect
this to contribute to our second half performance in 2026. Encouragingly, we
have already completed a first site acquisition for the Group's joint venture
with Homes England.

Whilst market conditions remain uncertain in the near term, further benefits
of our cost, productivity and mix enhancement initiatives will support the
delivery of good year-on-year financial and strategic progress."

 

Full year performance

Total units were down c. 9% on prior year at c. 15,700 (FY24: 17,225)
including c. 3,000 (FY24: 3,216) from JVs.  The mix for the full year was
stable at 74% Partner Funded and 26% Open Market.

Full year Partner Funded units reduced by c. 8% to c. 11,600 (FY24: 12,633)
mainly reflecting partners' funding uncertainty in H1. Additional affordable
housing volumes increased by c.30% in the second half compared to the same
period last year, benefitting from the increased clarity of future funding
following June's Spending Review.  Conversely, during the second half a
number of active PRS partners paused delivery while they refinanced which
contributed to a c.25% reduction in PRS volumes versus the prior year.

While Open Market sales conditions remained similar to FY24, Open Market units
decreased by c. 11% to c. 4,100 (FY24: 4,592) due to lower sales outlets. The
Group has supported its Open Market sales strategy during the year with
incentives of up to c. 6% of open market sales price.

The Group expects total adjusted revenue to be broadly flat at £4.2bn (FY24:
£4.3bn), with total average selling price up 3% at £282k (FY24: £275k)
mainly due to geographical mix. The Group's sales rate for FY25 averaged 0.96
(FY24: 1.07) sales per site per week reflecting uncertainty driven by the
Autumn Budget causing a more subdued market in Q3 and the first half of Q4. As
planned and in line with our strategy, we completed a higher volume of land
sales in FY25, contributing c.£200m of revenue in the year (FY24: £91m).

Strong operating margin progression in H2 led to a full year operating margin
of 8.4% driven by the commencement of new, higher margin developments,
increased operating leverage and reduced impact of the cost issues identified
in the former South division in FY24. Build cost inflation was low single
digit in FY25, given the benefits of scale inherent in our Partnerships model
and our focus on standardisation and increasing use of off-site construction.
Vistry Works delivered in excess of 4,600 timber frame units in FY25 (FY24:
2,900). Overall, Group adjusted profit before tax is expected to be up from
prior year at around £270m (FY24: £263.5m), in line with expectations.

We have selectively taken advantage of a subdued land market, securing c.9,500
plots on 30 sites in the second half of the year (FY25: 12,600 plots, 44
sites), including three large strategic sites in Worcester, Rugeley and Bury
St Edmunds with a combined c.5,000 plots between them. While continuing to
reduce our legacy housebuilding landbank, we have a very healthy pipeline of
new acquisitions for 2026 which achieve the target metrics of our partnership
model.

The Group's net debt position as at 31 December 2025 was c. £145m (31
December 2024: £180.7m), achieving the objective of a year-on-year reduction
but reflecting higher than anticipated land spend and some partner
deal-related delays due to the Q4 market uncertainty. Average daily net debt
for FY25 was c.£730m (FY24: £698m) reflecting the higher opening debt level
and later-than-expected timing of Partner Funded deals in the latter part of
the year.

 

Market Conditions and Outlook

Vistry is uniquely positioned as a leading provider of affordable, mixed
tenure housing to play a key role in the delivery of the £39 billion, 10-year
SAHP and this gives us a significant opportunity for growth in the
medium-term. We expect bids for the SAHP to be invited in H1 and are hopeful
that early allocations commence by the half year or in early Q3.

An announcement of the outcome of the rent convergence consultation is
expected during January, which, coupled with the 10-year rent settlement
announced in 2025, will further reinforce investment capacity for partner
affordable housing providers. We also welcome the modernising and streamlining
of the planning system as part of the refreshed National Planning Policy
Framework, currently under consultation.

As with all these initiatives, we are encouraging pace of decision-making and
process in order to accelerate the much-needed step up in housebuilding.

The Group enters the new year with a forward sales position totalling
c.£4.0bn (31 December 2024: £4.4bn) providing strong coverage for 2026
delivery. The SAHP will drive increased activity, supporting our growth
strategy with the grant funding timetable providing greater visibility in the
second half. We expect pricing amongst PRS partners to strengthen in response
to increased demand for portfolio delivery and the opportunity to acquire
assets through our pre-sold model which provides visibility and consistency of
product. This, together with a cautiously optimistic view on the impact of
lower interest rates on open market conditions, is likely to result in a
second half weighting to performance again in 2026, albeit less pronounced
than in 2025.

Whilst market conditions remain uncertain in the near term, further benefits
of our cost, productivity and mix enhancement initiatives will support the
delivery of good year-on-year financial and strategic progress.

 

Conference call at 09:00am today

There will be a short call for analysts and investors at 9am today hosted by
Greg Fitzgerald (Executive Chair and CEO) and Tim Lawlor (CFO).  To join the
call please register at
https://storm-virtual-uk.zoom.us/webinar/register/WN_kZc3HatNTmKa9KmOziNUqw
(https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fstorm-virtual-uk.zoom.us%2Fwebinar%2Fregister%2FWN_kZc3HatNTmKa9KmOziNUqw&data=05%7C02%7Ckate.moy%40vistry.co.uk%7C8810ecbd2eb845b002db08de51e88ee4%7C614e635a0fb64f3fb7d37f9191fef772%7C0%7C0%7C639038256456526662%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=l5F8sqZAZ9l1pfNUkjUFqBZ6bmwYfM%2Bsjg1LSQvWw4M%3D&reserved=0)

UK Dial-in details:

United Kingdom: +44 203 481 5237

Webinar ID: 815 0370 0403

 

For further information please contact:

 Vistry Group PLC

 Tim Lawlor, Chief Financial Officer           020 3048 3393

 Kate Moy, Group Investor Relations Director

 FTI Consulting

 Richard Mountain                              020 3727 1340

 

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