UK's Vistry Warns on Profit, to Slow House Building in Blow to Shares

Bengaluru, May 14: British house builder Vistry warned of lower annual profit and will slow construction due to the economic impact of the Iran War. The company expects first-half profit to be significantly below previous years, with an operational review underway.

Steps to Boost Cash Flow

Vistry expects steps to boost cash flow to cut debt, including pausing share buybacks, delaying construction, adopting stricter land-buying criteria and offering deeper incentives. Adam Daniels, who became CEO last month, is conducting an operational review, with findings to be shared with interim results in September.

Profit Expectations

Vistry now expects full-year adjusted profit before tax toward the middle of analysts' forecasts of 168 million to 283 million pounds. The company posted a profit of 268.8 million pounds last year. The Iran war is driving up costs of construction materials and dampening buyer interest, prompting similar warnings from competitors Persimmon and Taylor Wimpey.

Sales Rate and Cost Pressures

Vistry said its overall sales rate jumped 32 per cent 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," the company said.