Second profit warning in a month for major UK housebuilder

Image: Vistry

The company, based in Kent in England, cited additional costs in its South Division, where the cost of building nine of 46 developments were greaster than previously disclosed.

It makes most of its sales through partnerships with local authorities, housing associations and government providers.

It now expects its adjusted profit before tax for the year to 31 December to be £300 million (US$389 million), lower than the £350 million it forecast last month.

Vistry, which has about 300 developments across six divisions, also cut its annual construction target by 500 units to 17,500 homes.

The housebuilder’s cost concerns come at a time when in general British housebuilders have seen signs of recovery, following two Bank of England interest rate cuts in the last three meetings.