Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • VTY reports H1FY25 adjusted operating profit of approx. GBP125 million, in line with expectations.
  • Vistry Group reduces net debt to GBP 295 million as of June 30, 2025, aided by improved cash generation.
  • VTY secures forward order book of GBP 4.3 billion; 79% forward sold for FY25.

Vistry Group PLC (LSE:VTY) has released its trading update for the six months ended 30 June 2025, reporting financial and operational performance largely in line with expectations. The UK-based homebuilder delivered adjusted operating profit of approximately GBP 125 million, compared to GBP 161.8 million in H1FY24. Adjusted profit before tax is estimated at GBP 80 million, lower than last year’s GBP 120.7 million. The results reflect a moderation in Partner Funded completions and continued affordability challenges in the open market.

The Group completed around 6,800 homes in the first half of the year, down from 7,792 in the same period last year. Of these, 73% were Partner Funded, while 27% were sold on the open market. The Group’s average sales rate stood at 1.022 per week across 186 active sales outlets, compared to 1.21 from 210 outlets a year earlier. Group revenue for the period is expected to be around GBP 1.8 billion , with average selling prices holding steady.

Net debt as of 30 June 2025 was approximately GBP 295 million, lower than the prior year’s GBP 322 million despite a GBP 92 million higher opening position at the start of the year. The company also completed the refinancing of its GBP 500 million revolving credit facility and GBP 400 million term loan, both of which are now extended to April 2028 with no change to lending terms or participating institutions.

The first half of 2025 was marked by subdued activity among affordable housing partners ahead of the UK Government’s June Spending Review. However, Vistry highlighted improved demand in the Private Rented Sector (PRS), supported by new market entrants and higher investment levels.

The company’s order book at the end of June stood at GBP 4.3 billion, compared to £5.1 billion in the prior year. As of now, 79% of expected FY25 revenue is secured through forward sales. The firm has already booked 83% of Partner Funded revenue and reported that more than 100% of the remaining Partner Funded sales are covered in its current deal pipeline.

Vistry also outlined expectations for the second half of the year, driven by the UK Government’s new GBP 39 billion Affordable Homes Programme. This funding initiative, announced in June 2025, represents a significant increase over the previous GBP 11.5 billion commitment. A portion of this funding GBP 2 billion will be allocated under the existing programme in H2FY25, with completions expected by March 2029. The group anticipates that further allocations under the 2026 scheme will support a notable increase in Partner Funded activity.

Land acquisition during the period was down, with 3,113 plots secured across 14 developments. Vistry reiterated its aim to reduce the length of its owned landbank in line with its asset-light Partnerships strategy.

In regulatory matters, the company acknowledged its involvement in the UK Competition and Markets Authority’s housebuilding sector investigation. Vistry has voluntarily committed to contribute GBP 12.8 million as part of a collective GBP 100 million pledged by seven builders to support affordable housing.

The company’s share buyback programme remains active, with GBP 57 million of the GBP 130 million allocation completed to date.

As of 10 July 2025, shares of Vistry Group were trading 0.80% higher at GBX 631.00 on the London Stock Exchange.