Highlights

  • Vistry Group reports FY25 adjusted profit before tax of around GBP 270m, broadly matching market expectations.
  • Revenue remains near GBP 4.2bn as lower completions offset pricing and land sale contributions.
  • Net debt declines year-on-year to approximately GBP 145m despite higher land investment.

Vistry Group PLC (LSE:VTY) released a scheduled trading update for the financial year ended 31 December 2025, ahead of its full-year results announcement in March 2026. The Group expects adjusted profit before tax to be around GBP 270m, compared with GBP 263.5m in FY24. Total revenue is anticipated to be broadly unchanged at approximately GBP 4.2bn.

Total housing completions declined by around 9% year-on-year to nearly 15,700 units. The tenure mix remained stable, with Partner Funded housing accounting for 74% of deliveries and Open Market homes contributing the remaining 26%. Average selling price increased by about 3% to GBP 282k, primarily due to geographic mix.

Operating margin for the full year is expected to be 8.4%, reflecting improved performance in the second half of the year, higher-margin developments and reduced impact from prior-year cost issues.

Partner Funded and Open Market Trends
Partner Funded completions fell by approximately 8% to around 11,600 units, largely due to funding uncertainty among partners during the first half of FY25. Affordable housing volumes increased by about 30% in the second half following improved visibility on future funding. In contrast, private rented sector (PRS) volumes declined by roughly 25% as several partners paused activity during refinancing.

Open Market completions declined by nearly 11% to approximately 4,100 units, reflecting a lower number of active sales outlets. Sales incentives of up to around 6% of selling price were used during the year. The average sales rate stood at 0.96 sales per site per week, compared with 1.07 in FY24, influenced by market uncertainty during the second half.

Land Activity and Balance Sheet Position
Vistry completed higher land sales during FY25, contributing around GBP 200m to revenue. During the second half, the Group secured approximately 9,500 plots across 30 sites, including large strategic developments in Worcester, Rugeley and Bury St Edmunds.

Net debt at the end of December 2025 stood at approximately GBP 145m, down from GBP 180.7m a year earlier. Average daily net debt for the year increased to about GBP 730m, reflecting timing delays in Partner Funded transactions and higher land expenditure.

Outlook and Forward Sales Visibility
The Group entered 2026 with forward sales of around GBP 4.0bn, providing coverage for planned deliveries. Activity related to the Social and Affordable Homes Programme (SAHP) is expected to influence bidding and allocations during the year, while planning system changes and rental framework decisions remain key external factors.

Share Perfromance
VTY shares trade at 630.16 GBX, down 7.76% today at the time of writing.