Housebuilder Vistry Group posted a loss before tax of £661.3m in the six-month period to 30 June 2026 compared with a profit of £40.9m in the same period last year.
The company said the slump was due to a £475m writedown and an additional £73.2m provision for building safety work. Total completions fell by 8% to 6,304 in H1 2026 and the group’s net debt was £468.8m compared with £293.1m at 30 June 2025, which it said was primarily due to a deterioration in trading and a net investment in infrastructure.
Vistry chief executive Adam Daniels has set out a detailed turnaround plan, which will see it transition to a smaller, more focused business targeting approximately 12,000 completions per annum over the medium term.
The housebuilder will target a tenure mix of approximately 60% partner funded and 40% open market and will reduce the number of regions it operates in, focusing its efforts on delivering homes in the North, the Midlands and the West of England. Its South East operations will move to a fully pre-sold model to eliminate open market exposure.
Vistry’s land bank will also be reshaped and reduced from 51,000 plots to 36,000 plots with a more selective approach to new land acquisition, increased discipline around capital allocation and a sustainable management of margins.
The housebuilder said cost savings of £50m per annum have been identified as a result of operating in fewer regions, flatter structures and lower volumes, in addition to the £25m per annum previously identified from a voluntary exit scheme and recruitment freeze.
Daniels said: “Since taking over as chief executive in April, we have made substantial progress in re-focusing the business and delivering on our immediate priority to improve cash generation. In parallel, we have now completed an extensive review of our business and operating model including how best to position the group for future success, the conclusions of which we are communicating today alongside our half year results.
“The review confirms that Vistry has strong fundamentals: a differentiated mixed-tenure model, deep partner relationships, a quality product, exposure to structurally attractive affordable and partner-backed housing markets and highly motivated people. Whilst the challenges we have experienced in the last couple of years have been exacerbated by market headwinds, the review has also made clear that our execution, regional discipline and capital allocation have not been consistent enough.
“These issues can be fixed, and we are taking the necessary steps to ensure the strong performance we have seen across many of our sites is replicated across the group as a whole. Achieving this has necessitated an urgent focus on increasing operational control, releasing cash, reducing complexity and establishing a base from which we can deliver more consistently.
“We are committed to entering 2027 on the right footing and following the actions taken, do not anticipate any need to raise equity. I am pleased to say that we expect to announce the appointment of a high quality new CFO imminently who will support me with the delivery of our strategy.
“We are repositioning Vistry as a specialist mixed-tenure housebuilder that will deliver consistent, cash-backed growth in earnings alongside highly attractive returns on capital. To achieve this the group will need to be smaller, more focused geographically and with increased discipline and control in operational delivery and allocation of capital. Managed realisation of value from our asset base will support further de-leveraging, ensuring the group has a robust platform from which to operate.
“I am confident Vistry will continue to be the UK’s leading specialist mixed-tenure housebuilder, delivering high quality open market, affordable and private rented sector homes where they are needed most. This is the right model for Vistry and one which gives it the potential to thrive, benefitting from structural demand for affordable and mixed-tenure housing.”
He added: “The CEO review has provided strategic clarity with a deliverable plan and clear commitments across capital, operations and culture. This gives me great confidence that we can return Vistry to a business that consistently creates value for shareholders and delivers exceptional outcomes for all stakeholders.”
