Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • VTY's adjusted revenue reached £1.85bn and adjusted profit before tax stood at £80.6m reported in H1 2025.

  • Government’s £39bn Social and Affordable Homes Programme positions Vistry for future growth.

  • Forward order book at £4.3bn, with 88% of FY25 sales already secured.

Vistry Group Plc (LSE:VTY) has released its unaudited results for the six months ended 30 June 2025. The group reported profits and completions in line with expectations while continuing to position itself to benefit from the government’s newly announced Social and Affordable Homes Programme.

Financial Performance

For the first half of 2025, the group delivered adjusted operating profit of £124.4m, compared with £161.8m in H1 2024. Adjusted profit before tax was £80.6m, down from £120.7m last year. On a reported basis, operating profit was £58.1m and profit before tax was £40.9m, compared with £114.1m and £91.2m respectively in the prior period.

Total completions were 6,889 units, representing a 12% decline year-on-year, reflecting lower partner demand during the first half. Adjusted revenues fell 6% to £1,853.2m, compared with £1,974.5m in H1 2024. However, the average selling price increased 4% to £283k, up from £273k last year, due to a change in mix.

Net debt stood at £293.1m at 30 June 2025, down from £322.0m in the prior year. This was significantly below expectations despite a higher opening position. The company also completed a refinancing of £900m facilities, extended to April 2028 on unchanged terms with support from its lending group.

New Social and Affordable Homes Programme

In June, the UK government announced a £39bn, 10-year Social and Affordable Homes Programme, alongside a long-term social rent settlement and consultation on rent convergence. Vistry highlighted its capability and experience in partnerships housing delivery, positioning it to play a major role in this programme.

The group has been working with affordable housing partners to identify development opportunities, building a pipeline of transactions expected to complete in the second half of 2025. Positive momentum is anticipated into 2026, supported by the recently announced joint venture with Homes England to accelerate the delivery of large-scale residential sites across the UK.

Current Trading and Outlook

The forward order book as of 5 September 2025 stood at £4.3bn, compared with £5.1bn in September 2024. The group reported that 88% of FY25 is forward sold, with 89% of Partner Funded sales already secured. The deal pipeline covers more than 100% of the remaining Partner Funded units for the year.

Vistry aims to improve its open market sales rate in the second half of 2025 through sales and marketing initiatives, while remaining mindful of ongoing macroeconomic uncertainties. The group’s focus on cash performance and managing work in progress is expected to reduce net debt further by year-end.

Full-year guidance remains unchanged, with the group expecting to deliver a year-on-year increase in profits in FY25.