Vistry Group has reported half year results for the period ended 30th June 2025, making an adjusted operating profit of £124.4m, down from £161.8m in H1 2024.
Adjusted profit before tax was £80.6m, down from £120.7m in the first half of the previous year.
Reported operating profit came in at £58.1m, with reported profit before tax at £40.9m, both lower than the same period last year.
Total completions were 6,889 units, down 12% on the prior year, with average selling price up 4% to £283,000.
Group adjusted revenues were £1.85bn, a 6% decrease on last year, while net debt at 30th June 2025 was £293.1m, lower than expected and down on the prior year.
The business also completed a refinancing, extending £900m facilities to April 2028.
The group’s forward order book stood at £4.3bn, down from £5.1bn in September 2024.
The business said it is 88% forward sold for the financial year, with 89% of partner funded sales forward sold.
Vistry added that it is aiming to improve its open market sales rate in the second half, but noted that demand will still be affected by wider economic conditions.
The group expects year-on-year net debt to fall by the end of December 2025 and has kept full year profit guidance unchanged.
Greg Fitzgerald, CEO of Vistry Group, said: “The Group’s first half performance was in line with expectations and we are well positioned to deliver for the full year.
“Working with our partners, we have a strong pipeline of development opportunities which will drive our second half performance, with an expected significant step-up in completions and profits.
“The Group also made good progress with its target of reducing debt levels, with net debt as at 30 June of £293m significantly better than expectations.”
Fitzgerald added: “The new Social Affordable Homes Programme provides an unprecedented level of funding for affordable housing over the next 10 years.
“Through our Partnership model and commitment to mixed tenure development, Vistry is uniquely placed to maximise this opportunity and play a key role in delivering high quality affordable homes across the country.”
Oli Creasey, head of property research at Quilter Cheviot, said: “H1 2025 was a challenging period for Vistry, though this was largely anticipated due to issues in the Southern division late last year.
“The decline in operating profit had already been flagged in the July trading update, so the 23% drop came as no surprise.
“Similarly, the operating margin fell to 6.7% – a weak result, but in line with expectations.”
Creasey added: “Vistry’s pivot toward social and affordable housing is shifting the business model toward higher volume but lower margins compared to traditional housebuilders.
“Even so, a mid-single-digit margin is low, and management expects this to improve over the near to medium term.
“One bright spot was the company’s net debt position, which came in at £293m, which is better than expected and guided to fall further by year-end.”
He said: “Strengthening the balance sheet remains a key priority, especially in a sector where many peers aim for a net cash position.
“Despite the weak H1, management has reiterated full-year guidance for profit growth.
“While this remains achievable, it will require a strong performance in H2, given that H1 2025 profit before tax is down nearly 50% year-on-year.”
