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Vistry Group PLC on Thursday welcomed government plans on affordable housing and said it hopes expected interest rate cuts will boost the housing market in the rest of 2025. In a trading update for the six months that ended June 30, the Kent, England-based house builder said it expects first-half adjusted operating profit to be around £125 million, in line with expectations, but down 23% from £161.8 million a year prior. It expects adjusted pretax profit of around £80 million, down 34% year-on-year from £120.7 million. Net debt as at June 30 is ‘significantly’ better than expectations, Vistry said, at £295 million, lower than £322.0 million a year prior. In response, shares in Vistry were up 0.7% at 630.40 pence in London on Thursday morning. During the first half, Vistry delivered around 6,800 home completions, down 13% from 7,792 a year ago, with Partner Funded completions at 73%, down from 76% a year ago. ‘Partner Funded demand from our affordable housing partners remained at lower levels in the first half due to uncertainty ahead of the June [UK government] spending review and transitional funding constraints,’ Vistry explained. The group’s sales rate averaged 1.02 per outlet per week, down from 1.21 last year, with average selling prices remaining ‘firm.’ Group revenue in the first half is expected to be £1.8 billion, down 10% from £2.0 billion a year ago. Vistry said it remains on track to deliver a year-on-year increase in profit in financial 2025, supported by a forward order book totalling £4.3 billion and a strong pipeline of development opportunities, with affordable homes funding expected to underpin a step-up in volumes. In 2024, Vistry reported pretax profit of £104.9 million and operating profit of £167.0 million. On an adjusted basis, pretax profit was £263.5 million and operating profit was £358.2 million. The company called the UK government’s £39 billion affordable homes programme, announced in June, as ‘unprecedented’ and ‘transformative’. Chief Executive Greg Fitzgerald said the proposals were ‘hugely welcome’. ‘This unprecedented funding, together with a 10-year rent settlement and the expected reintroduction of rent convergence measures, will drive the delivery of the high-quality affordable homes the country so badly needs,’ he said. Looking ahead, Vistry said it is ‘hopeful’ that further interest rate cuts in the UK will provide additional stimulus to open market sales in the second half. ‘A first half performance in line with expectations, together with the recent landmark government support for affordable housing, reinforces the board’s conviction in Vistry’s Partnerships model and long-term prospects,’ the company said. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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