Vistry Posts Record £661M Loss, Slashes Output as UK Housing Slump Deepens

Vistry Group plunged to a record pre-tax loss of £661 million and said it will cut annual housebuilding to 12,000 homes from more than 15,000, retreating from the South East as Britain's property downturn deepens. Shares fell 7% on Sept. 24. The loss includes £475 million in write-downs and a £73 million hit from rising building safety costs, eclipsing the £79 million deficit posted by predecessor Bovis Homes during the 2008 financial crisis. Adjusted loss before tax for the six months to June was £83.3 million, versus an £80.6 million profit a year earlier. Vistry will reduce regional businesses to 12 from 25 and target £50 million in annual savings, plus £25 million via a voluntary exit scheme and hiring freeze. It will stop open-market sales to individual buyers in the South East, selling instead to investors or housing associations pre-construction. Net debt rose to £468.8 million from £293.1 million. The stock is down 58% this year.