Vistry issues profit warning after build costs higher than estimated

By Carl Brown2024-10-08T07:04:00

Source: Shutterstock

Housebuilder revises expected profit down by £80m due to “understated” full-life cost projections on nine schemes

Vistry Group has revised down its expected profit for 2024 by 19% after saying build costs on nine schemes will be higher than projected.

The housebuilder, in a trading update this morning, said it had recently became aware that cost projections to complete nine of its 46 developments have been understated by 10%.

Vistry estimates the one-off impact of adjusting for the revised development costs will reduce the housebuilder’s adjusted pre-tax profit by £80m this year to £350m. The change will also reduce its adjusted pre-tax profit by £30m in 2025 and £5m in 2026.

Already registered? Login here

To continue enjoying Building.co.uk, sign up for free guest access

Existing subscriber? LOGIN

Stay at the forefront of thought leadership with news and analysis from award-winning journalists. Enjoy company features, CEO interviews, architectural reviews, technical project know-how and the latest innovations.

Limited access to building.co.uk
Breaking industry news as it happens
Breaking, daily and weekly e-newsletters

Get your free guest access SIGN UP TODAY

Subscribe now for unlimited access

Subscribe to Building today and you will benefit from:

Unlimited access to all stories including expert analysis and comment from industry leaders
Our league tables, cost models and economics data
Our online archive of over 10,000 articles
Building magazine digital editions
Building magazine print editions
Printed/digital supplements

Subscribe now for unlimited access.

View our subscription options and join our community