Vistry Group (LSE:VTY) shares tumbled around 5% on Thursday after the British home builder told investors it expects net debt to average around £800m a day in the second half, higher than previously forecast, after some partner-funded housing deals slipped into late in the fourth quarter.
The housebuilder, meanwhile, said it still expects year-end net debt to fall within analysts’ forecasts.
The forward order book fell to £3.1bn from £3.3bn in September. Vistry said affordability pressures and buyer caution continued to weigh on the open market.
Partner-funded activity is picking up slowly as grants start to flow under the Social and Affordable Homes Programme.
Vistry has signed a £350m grant agreement with Homes England under the scheme.
The house builder has begun refinancing its £900m term loan and revolving credit facility. It has also appointed management teams for its 12 operating regions, down from 25. The new structure takes effect in January, and Vistry is targeting £50m in annual overhead savings in FY27.
In London, Vistry shares were down 14.2p or 4.9% changing hands at 275.8p.
