Vistry’s profit plummets as cost issues bite

Vistry Group’s pre-tax profit collapsed 64% in 2024, in response to cost errors in its South division.

Reporting on its full year results for the year ending December 31 2024, the partnerships housebuilder said its performance was “significantly below” its expectations at the start of 2024.

It reported pre-tax profit of £104.9 million against 2023’s £293 million, although revenue lifted 7% to £4,329.2 million. Adjusted pre-tax profit fell 35% to £263.5 million.

The company’s understated forecasts in its South division, which it first reported last October, drove £165 million of cost adjustments, including a £91.5 million impact to adjusted pre-tax profit in 2024 and £53 million in future years.

As also previously reported, Vistry said its financial performance had been affected by delays to completing agreements with its partners “and other commercial transactions at the end of the year”. Last year, it issued a total of three profit warnings for 2024.

In its financial results, the business also reiterated that it had undertaken “an extensive review" process across the group “to fully understand the cost forecasting issues”. It has made leadership changes, including the removal of Earl Sibley as chief operating officer with the role …