Vistry Group Plc. (VTY.L), a British housebuilder, announced on Friday that it has revised down its expectations for annual adjusted profit before tax, citing issues in its South Division, adjustments in other regions, and reduced expectations for completions.

The Group now expects its annual adjusted profit before tax to be around 300 million pounds, lower than prior guidance of approximately 350 million pounds.

The company attributed insufficient management capability, non-compliant commercial forecasting processes, and poor divisional culture at South Division.

Following an in-depth review, the Group now expects the impact to adjusted profit before tax of the issues in the South Division to be greater than that announced on October 8 and to total 105 million pounds in full year 2024, followed by 50 million pounds in FY25, and 10 million pounds beyond FY25.

For the full year, Vistry Group now expects to deliver total completions of around 17,500 units, with the total average selling price at a similar level to the prior year. Earlier, the company had expected to deliver 18,000 units, for the year.

Looking ahead, the Group, said: “We have a strong forward sales position up 12% on prior year and totalling £4.8bn (2023: £4.3bn), supporting our FY25 delivery and beyond. The Group’s growth in FY25 will be influenced by our need to stabilise the South Division and prevailing market conditions.”

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