And what's the % fall in pre tax profits from the last full year - also factor in that VTY was rated pre warnings, as a growth stock, the % share price fall arguably looks nothing out of the ordinary.
Others may see it differently. |
Were the results that bad?
from 1400p to 570p in 6 months is one hell of a crash.
60% down.
A perfect storm, gilt yields rising today, interest rates being forced up by market.
UK economy on the brink.
Labour unable to reduce the bloated welfare state and even this policy of 'homes for immigrants' may not help. |
Sikhthetech -
Agree that the CEO and the FD hold the key for trust and confidence.
If nothing changes at management level, it'll take months to years for a possible return to normality. |
The timing of results was not ideal with the current negative market sentiment amplifying the fall.H1 results are expected to be poor, so recovery depends on H2, and if that doesn't go as expected, then we will see new lows.If H2 results are as good as expected by management, then maybe the trust will start returning. |
fuji,
Yep, 450p is a long way down but also more in line with my own thinking
sikhthetech - 15 Nov 2024 - 16:38:53 - 1839 of 2508
Louis,
"The FD should have resigned by now. On issues like this there are no excuses."
Agree, the FD but at least the CEO should have resigned by now.
Regardless who's at fault or what other skeletons may exist, they were in charge. To start restoring confidence, the 1st step must be for them to resign.
I might take a punt < 500p on the hope that the CEO does resign and the company starts to re-build confidence. |
450p is a long way down. |
xclusive,
"I was hoping not to see any more skeletons and that in itself is a positive."
It's too early to say.
The problem here is credibility has been damaged. It can take months, years to restore, especially as the CEO is still in charge. |
Broker target 450p |
I suspect our shorts are back in play as volume at 120k ph. I'm continue using to build a larger position than planned. |
 https://www.theguardian.com/business/2025/mar/26/uk-housebuilder-vistry-treasury-injection-profits-plummetAs you say Spudders, ordered back to work :)I've run businesses all my working life and I wanted my staff in the office for the reasons stated in this article. Not saying that some roles can't be home-working or hybrid and be more productive but you're then having different rules for different segments of the workforce, not easy. You can argue the productivity case, each industry is different but you can't argue the interpersonal skills loss. The collaboration between colleagues, knowledge sharing, camaraderie etc. I had many salespeople and they are notoriously lazy and I could evidence that hybrid was an absolute failure v based in the office. As stated, you can argue the productivity case but I believe it's bad for our society and we're losing our communication skills. I'd also add that business owners, especially SME, may have a different view to managers who don't own their businesses and I can see that's the case from the number of people that aren't working when they should be. We need GDP growth and our Vistry believe that they need staff in to deliver their productivity objectives, we need more of the same from other business leaders. Covid was a disaster for our society. Rant over ! |
Good to hear office staff back in office 5 days a week! Hybrid working never a good idea in construction industry. Bottom is in imeo, lack of decent tradesmen is a macro concern. |
I was hoping not to see any more skeletons and that in itself is a positive. We know the profit was decimated and the £165m correction had already been factored in. The share price has dropped over 50% and they have been punished. They face a challenging H1 but they're forecasting state that they will continue to grow revenue and reduce debt. Partnerships and govt affordable housing strategy will help and the share price will move north. The knockers wanted to see a few more skeletons but the cupboard is firmly locked. Not going to be easy but I'm investing in the basis that recovery continues |
wealthoracle.co.uk/detailed-result-full/VTY/1318 |
Wonder how the the calculation of the "reward" to shareholders is worked out?
The only return to shareholders can be cash dividends.
Whether the shares share price goes up or down will not rely on buy backs solely and the cash expended on those only goes to those selling? |
AJ Bell view of results
AJ Bell investment analyst Dan Coatsworth commented: ‘Having issued three profit warnings in quick succession, the market already knew Vistry’s results were going to be miserable. The headline figures speak for themselves; profit is down by a quarter, net debt has doubled and there is no dividend.
‘Saying share buybacks were in lieu of the dividend makes it sound as if investors were still treated to a handsome reward, although companies are free to decide how to return cash to shareholders.
‘Chief executive Greg Fitzgerald implies there are no more skeletons in the closet for the business and Vistry is now on the front foot. However, the outlook statement implies it will be a rocky road to recovery. |
Remember motley fool tipping this as the bargain of the centuryClowns |
Extraordinary destruction of shareholder value, no dividends for the foreseeable, share buy-backs to prop up the share price and enhance earnings / profit per share, the latter no doubt to attempt to reach executive bonus thresholds, really what's not to like.
Having been in this industry for 40+ years I'm angry but not surprised, the explanation for the South division's woes indicates that the stench was extreme with a chronic lack of corporate governance and basic oversight to indicate that this is an accounting oversight is pathetic. To make adjustments in excess of £100 million and effectively brush it under the carpet shows all that is wrong at executive level. That report seems akin to re-arranging the chairs on the Titanic for the passengers knowing that there is a space in a luxury life raft for the board members.
Interesting that despite increasing provision £100 million+ for remediating cladding / fire safety of their own properties there was no mention of further provision for contributions to the national remediation fund which is widely expected to be substantially increased by Rachel in accounts. |
Business model probably isn’t right no word to change 🫣 |
Maybe better to keep same management.
They must know the company and its weaknesses better than a newcomer.
As Blair once said, you get kicked out of office just when you know your way around,
They love you to start with when you are clueless. |
No murmour of new management what’s that all about… |
Lets assume there is some kitchen sinking in these drab results.
Turnover is ok so we must hope that someone sorts this shambles out. |
To be blunt how can you trust this management team moving forward?
They are totally inept as proven by what has happened regarding the mismanagement of other divisions within the company.
Some may think the bad news is all priced in, but with the current management still at the helm I personally will not be investing. |
Our Rachel will be on shortly and positive updates on planning reform will help Vistry strategy. As stated, this is a RECOVERY play following shocking management leading to a huge dent in profitability. There will be inflationary pressures, remediation costs etc but they're forecasting 5-8% revenue growth and the partnerships business to continuing to deliver 40%+ ROCE. A few interest rate cuts would help the RS business but I'm hopeful that the only do trajectory from here is northwards ;) |
We knew all the bad news. We knew 24 was a shoite year, that's last years news. They've done what they needed to do and the business will be a far tighter ship going forward. Share price had been slaughtered and this is a recovery investment and from what I've read, upside still in play :)They're forecasting a tough H1 and a strong H2 with strong partnership business and continuing to build through 26. Buybacks continue and to complete in H1 26. If they were concerned re cash, that's the first project to can.Inflationary pressures are there but they're implementing strategies to offset. Still a strong buy for me and I took a chunk this morning . |
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