Vistry Group (VTY) Trading update summary

Market and trading update

• Year-to-date sales rate increased 32%, driven by targeted sales of completed or near-completed Open Market units.

• Open Market sales rate remains about 30% higher than last year, though recent weeks saw some moderation due to Middle East conflict uncertainty.

• Increased incentives and discounts on low-margin and nearly finished sites led to earlier profit impacts, with a higher weighting in H1; discounting impact expected to reduce in H2.

• Partner transaction activity subdued as industry transitions between Social Affordable Housing Programmes; demand from affordable housing partners expected to rise in late 2026 and 2027.

• Forward order book stands at £4.5bn, with £2.3bn for delivery in 2026.

Cost and inflation management

• Upward pressure on material and labour prices emerging due to Middle East events, expected to continue into H2.

• Mitigation efforts include proactive engagement with subcontractors and suppliers.

• Ongoing monitoring of build cost inflation as macroeconomic conditions evolve.

Cash generation and capital allocation

• Focus on improving cash generation and reducing debt, with initiatives to reduce inventory and enforce pricing discipline.

• Slowing or delaying some site builds to align with sales rates; higher hurdles for land buying.

• Share buyback programme paused to prioritise debt reduction.

• Average daily net debt in H1 expected to be higher year-on-year, but actions are expected to deliver net cash position over £100m by year-end.