Profit projections down as Vistry’s South division makes cost error
Shares in Kent-based housebuilder Vistry have fallen along with profit expectations after the group’s South division reported it had underestimated build costs.
Costs were supposedly understated at nine of the division’s 46 active developments – including some large-scale schemes – by around 10 per cent.
As such, Vistry’s projected profits for the 2024 fiscal year have fallen by £80 million to £350 million, while shares have tumbled 30 per cent.
The group “believe the issues are confined to the South Division, and changes to the management team in the division are underway” as it launches an independent review.
Vistry still plans to go ahead with a £130 million buyback announced last month.
A trading update is scheduled for 8 November.