Vistry Group losses pull down shares

FTSE 250 housebuilding company Vistry Group (LON:VTY) saw its share price drop by 6.01% to 597.28p (as of 15:35 BST) after it booked a pre-tax loss for the six months ended 30th June. Revenues for the half year were up by 28%, but site closures and slow sales during lockdown impacted financial performance. Management said that the second half had started well with strong sales and robust pricing.

CEO Greg Fitzgerald commented: “We moved quickly to integrate Linden Homes and Vistry Partnerships at the start of the year. It has been a successful process bringing together the best from each business, with the benefits from the combination expected to be ahead of our initial target. We have achieved this whilst maintaining our focus on delivering excellent service to our customers.

“Housebuilding’s first half performance was significantly impacted by the lockdown and resultant site closures. Vistry Partnerships demonstrated its market resilience and robust revenue model and led the group to an early successful return to site, with production levels across the Group now back at near normal levels.

“We have seen positive sales trends since early May, with consumer interest higher than at any time in recent years. Our sales rate in the second half to date is running 20% ahead of last year at 0.73, and pricing remains robust. The Group is well positioned to capitalise on the opportunities available in the second half and into 2021 when we expect to deliver a step-up in completions and profitability, a reduction in gearing and a return to dividend payments“.