Shares of the UK-based Vistry Group PLC (GB:VTY) gained momentum despite the company reporting a sharp drop in profits to £250 million in FY24, down from £419.1 million in FY23. However, the drop was in line with its revised guidance, issued in December. Moreover, the company reported a 7% rise in total completions and a 9% increase in adjusted revenues, fueled by strong performance in the partner-funded market. Following the update, Vistry shares surged by almost 10% as of writing.
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Vistry Group is a house-building company with presence in various segments of the UK housing market.
Vistry Implements Tougher Cost Measures
Vistry highlighted ongoing uncertainty in the housing sector over affordability issues and broader economic challenges. As a result, the company has revamped its management structure and implemented stricter cost controls following a series of profit warnings in 2024. According to its latest trading update, the company has simplified its operational structure, reducing from six divisions to three larger ones.
Earlier in October, the company noted the difficulties in its South division, forecasting a £165 million reduction in pre-tax profits over the next three years.
Despite the tough market conditions, the company signed more than 220 new partner agreements in 2024, with over 70 deals in the fourth quarter. Additionally, Vistry announced it secured 16,500 new land opportunities in 2024, an increase from 15,288 in 2023. It further stated that over 90% of the land required for planned completions is already secured for 2025.
Is Vistry a Good Share to Buy?
According to TipRanks, VTY stock has received a Hold rating based on two Buy, five Hold, and three Sell recommendations from analysts. The Vistry share price target is 696.8p, which is 23.7% above the current trading levels.
