Vistry Group (LSE:VTY) reported a loss for the first half of 2026 as revenue and housing completions declined and the company recognised exceptional charges during the period.
The charges included a goodwill impairment and an increase in provisions associated with building safety.
Net debt also increased during the period amid pressure on cash generation. Vistry discounted certain open-market housing inventory and recorded approximately £50 million of impacts associated with the early stages of its strategic review.
Strategic Review Reduces Regions From 25 to 12
Chief executive Adam Daniels has completed a strategic review of the business, resulting in plans to operate Vistry as a smaller and more geographically focused mixed-tenure housebuilder.
Under the revised structure, the number of operating regions will be reduced from 25 to 12.
The company also plans to simplify its products and operating processes and reduce and reshape its owned land bank.
In the South East, Vistry intends to move to a fully pre-sold operating model.
Vistry Targets 12,000 Annual Completions
As part of the revised strategy, Vistry is targeting annual housing completions of 12,000 units.
The company plans for approximately 60% of completions to be partner-funded, with the remaining 40% allocated to the open market.
Vistry is also targeting annual overhead savings of £50 million as it implements the restructuring.
The company intends to participate in the UK government’s new Social and Affordable Housing Programme as part of its mixed-tenure strategy.
Strategy Targets Lower Leverage and Cash-Backed Earnings
Vistry said the revised strategy is intended to produce more consistent, cash-backed earnings and reduce leverage.
Implementation will involve changes to the group’s regional structure, land holdings, product range and mix between partner-funded and open-market housing.
The targets remain management objectives and are subject to execution of the restructuring and future market conditions.
About Vistry Group
Vistry Group is a UK housebuilder operating a mixed-tenure model across open-market, affordable and private rented sector housing.
The company works with housing associations and institutional partners and operates across regions including the North, Midlands, West and South East of England.
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