Housebuilder Vistry reduces jobs and put eyes on mainly affordable housing relationships.

Housebuilder Vistry reduces jobs and put eyes on mainly affordable housing relationships.

Vistry’s Shift Towards Social Housing Partnerships

Strategic Focus on Social Housing Partnerships

Housebuilder Vistry is undergoing a strategic shift to exclusively prioritize social housing partnerships. This decision comes in response to the company’s resilient performance amid rising interest rates. Vistry, which merged with Countryside Partnerships the previous year, reported a profit of £174 million, despite a 30% increase in completed projects. Forward sales also saw a rise, reaching £4.3 billion. This financial stability allowed Vistry to maintain its profit guidance of £450 million.

Private Sales Slowdown and Strategy Adjustment

While Vistry experienced a slowdown in private sales since June, partnerships remained a substantial part of its business. However, private sales still accounted for a £670 million order book. In light of these market dynamics, the company has decided to refocus its strategy, bringing together the legacy Vistry and Countryside businesses into a unified segment with a sole focus on partnerships.

Job Reductions as Part of the Strategy Change

As part of this strategic shift, Vistry has announced its intention to reduce its workforce. The company had previously reduced its workforce by 4% during the merger with Countryside. However, it now anticipates further job reductions, although the exact number of job losses has not been determined as of now. Vistry aims to explore options for reallocating staff from discontinued roles to new positions or growth-related opportunities.

Shareholder Returns and CEO’s Perspective

In addition to the strategy change, Vistry plans to return £1 billion to shareholders over the next three years. CEO Greg Fitzgerald emphasized the progress made in integrating Countryside into Vistry and positioning the company as a leading provider of affordable mixed-tenure housing in the UK. He highlighted the growing social need for affordable housing and Vistry’s unique position as a leader in partnerships housing. The company’s strategic shift aims to maximize value, long-term returns for shareholders, and housing output, with a focus on achieving a 40% Return on Capital Employed (ROCE). Delivering affordable, sustainable homes aligns with Vistry’s core social purpose and vision.

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