The Vistry company has announced its third profit warning in the past three months, meaning a more than 40% reduction in its pre-tax profit forecast since October.<\/p>\n\n\n\n
The construction company, which aims to become the largest housebuilder by the number of homes built this year, stated that its pre-tax profit would be \u00a350 million lower than previously expected when it reports its 2024 results in the spring.<\/p>\n\n\n\n
In an updated report published on Christmas Eve, the company said it now expects pre-tax profit of around \u00a3250 million\u2014\u00a350 million less than the previous forecast of \u00a3300 million.<\/p>\n\n\n\n
The \u00a3300 million forecast had already been revised downward from previous estimates of \u00a3350 million, which the company had mentioned earlier, and those were also lower than the initial forecast of \u00a3430 million.<\/p>\n\n\n\n
Explaining its initial profit warning in October, the company noted that the cost of completing nine schemes in the southern region was 10% higher than expected.<\/p>\n\n\n\n
The reasons for the lowered forecast in the second profit warning, announced a month later, were related to delays in expected operations and completions at the end of the year. Additionally, it was reported that Chief Operating Officer Earl Sibley would be stepping down at the end of last year.<\/p>\n\n\n\n
In the Christmas Eve report, the company added that the decline was “primarily driven by delays in expected operations and completions at the end of the year.”<\/p>\n\n\n\n
The updated information also stated: “The Group has seen that a number of partnership transactions, which were expected to be completed in the 2024 financial year, require more time to close, and these deals are now likely to be completed in the 2025 financial year.”<\/p>\n\n\n\n
“Furthermore, the company has decided not to proceed with certain proposed deals as the offered terms did not meet expectations. We believe that more attractive opportunities will arise in the 2025 financial year,” the statement said. It also noted delays in some open market completions that were originally planned for 2024. According to the company, this had a minor impact on the final profit.<\/p>\n\n\n\n
The company is expected to provide another update in its scheduled trading report on January 15, with annual results to be published on March 6.<\/p>\n","protected":false},"featured_media":5060,"template":"","acf":[],"yoast_head":"\n