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Vistry cuts homebuilding target to 12,000 as execution falters

The group also trimmed its return on capital employed target to 30%, down from a prior 40%.

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HousingWire reports on the UK homebuilder Vistry and says the company is walking back its growth plan after earlier profit warnings and leadership changes.

According to the report, Vistry cut its annual homebuilding ambition from 20,000 homes to 12,000 homes, with a larger share of deliveries shifted toward northern England, after what it describes as poor execution of a partnership-led, pre-sale approach.

The outlet adds that management said the operating model, controls, and culture did not scale consistently with construction volumes, and that some land bank purchases would not have met future investment approval criteria.

The report also notes that Vistry has reduced its return on capital employed target to 30%, and that the company believes the damage to its balance sheet is not severe enough to require new equity.

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