FINWIRES · TerminalLIVE
FINWIRES

Vistry Group Shares Slide After Homebuilder Warns of First-half Loss

By
Vistry Group Shares Slide After Homebuilder Warns of First-half Loss

Shares in Vistry Group (VTY.L) fell sharply in early Wednesday morning trading after the British homebuilder said it expects to report a loss before tax of 30 million pounds sterling for the first half of 2026.

The projected loss compares with a pre-tax profit of 80.6 million pounds in the corresponding period a year earlier.

Vistry said the expected loss reflects the impact of cash-generation measures to reduce debt levels, which included enhanced pricing discounts, accelerated asset sales, and changes in site mix and build rates. The measures resulted in an impact of 50 million pounds in the first six months of the year.

The company's stock was down more than 9% in early morning trading in London.

Chief Executive Adam Daniels, who took the helm three months ago and is undertaking a review of the business, said management is treating 2026 "as a transition year to reposition the business to operate with significantly and sustainably lower financial leverage and healthy profitability."

"We have already begun to action some organisational changes and I look forward to sharing the full results of the review in September, including our initial thoughts on target financial metrics for 2027 and beyond," Daniels added.

Despite a challenging trading and uncertain political environment, the company said it expects the cash-generation activities would result in a "materially improved" second-half cash and profit performance. It expects its 2026 adjusted profit before tax to be in line with the current market consensus of 200 million pounds.

Separately, the company said Chief Financial Officer Tim Lawlor is stepping down to lead the finance function of a private company in another sector. Lawlor will stay with Vistry until October to ensure a smooth transition while the company searches for his successor.

Related Articles

Japan Bank Lending Remains at Strongest Level Since March 2021
US Markets

Japan Bank Lending Remains at Strongest Level Since March 2021

Japan's bank lending rose 5.7% year over year in June, matching May's pace and remaining at its strongest level since March 2021, according to preliminary data released by the Bank of Japan on Wednesday.The reading came in slightly below the consensus forecast of a 5.8% increase tracked by Investing.com.Outstanding loans at major, regional, and shinkin banks reached 676.1 trillion yen in June, up from 670.8 trillion yen in May.Lending by major and regional banks accelerated to 6.3% from 6.2%.Loans at major banks increased 8.7% from 8.6%, while lending by regional banks edged up to 4.3% from 4.2%.Lending by shinkin banks, which primarily serve small businesses and local communities, was unchanged at 1.7% from a year earlier.The BOJ raised its policy rate to 1% earlier in June, the highest level since 1995. Even after the increase, Japan's borrowing costs remain well below those in other major economies.The continued strength in lending points to resilient demand for credit despite higher interest rates, supporting the view that the economy can withstand further policy normalization.That is in line with the BOJ's latest Tankan survey, which showed an improvement in corporate financial conditions for the first time in a year, while large firms said conditions for issuing commercial paper had become more favorable."Supported by the generative AI investment boom and resilient production activity, the economy is unlikely to falter in the near term," Bloomberg quoted Toshihiro Nagahama, chief economist at Dai-ichi Life Research Institute and a private-sector member of Prime Minister Sanae Takaichi's economic and fiscal panel, as saying.Bloomberg reported that Japan is close to notching its longest uninterrupted economic growth streak since World War II, as the economy weathers higher oil prices from the Iran conflict and the central bank's ongoing efforts to normalize monetary policy.

Nikkei 225
Update: Dow Snaps Record Run Amid Tech Sell-Off, Oil Price Jump
US Markets

Update: Dow Snaps Record Run Amid Tech Sell-Off, Oil Price Jump

(Updates with market moves at the end of the day.)The Dow Jones Industrial Average retreated from record high on Tuesday as technology stocks sold off, while oil prices jumped amid renewed concerns over the Middle East situation.The Dow fell 0.3% to settle at 52,925.15 after logging back-to-back closing highs in the past two sessions. The technology-heavy Nasdaq Composite fell 1.2% to 25,818.7, while the S&P 500 shed 0.5% to 7,503.9.Among sectors, industrials saw the steepest decline followed by tech, while energy led gainers.Chipmaker Intel's (INTC) shares slumped 9.7%, the worst performer on the S&P 500. Western Digital (WDC), Marvell Technology (MRVL), Sandisk (SNDK), Advanced Micro Devices (AMD), Applied Materials (AMAT), Micron Technology (MU) also saw declines."Equities are rotating out of technology after Monday's rebound, as an Asian chip selloff revived (artificial intelligence)-valuation worries and pushed (South Korea's) KOSPI down 7.5%," Saxo Bank said in a report.A global tech sell-off on Tuesday followed the release of preliminary quarterly results by Samsung Electronics, as well as a Reuters report on Chinese firm DeepSeek developing its own AI chip that could allow it to rely less on US chipmaking giant Nvidia (NVDA) and Huawei.West Texas Intermediate crude oil was up 4.9% at $71.91 per barrel in Tuesday late-afternoon trade, while Brent advanced 5.1% to $75.67.Iran attacked a Qatari LNG ship transiting near the Strait of Hormuz, the world's most important chokepoint for crude flows, according to Qatar's foreign ministry spokesperson Majed Al Ansari.The US Treasury Department revoked the waiver allowing Iran to sell its oil, CNBC reported."Iran will only reap benefits if they exhibit good behavior," CNBC quoted a US official as saying. "Iran's actions in the Strait were wholly unacceptable to the United States and will be met with consequences."US Treasury yields were higher, with the 10-year rate up 6.6 basis points at 4.55% and the two-year rate rising 5.6 basis points to 4.18%.In economic news, the US trade deficit grew in May to its widest since March 2025, as imports increased and exports fell, government data showed."Surging imports and a rare decline in exports spiked the US trade deficit to its highest level in more than a year," BMO Capital Markets said in a note. "Despite tariffs, the trade deficit has returned to levels of late 2024, before importers began front-loading purchases, suggesting little overall progress in shrinking the trade gap."In company news, SpaceX (SPCX) drew bullish views from Wall Street as the rocket and satellite company joined the Nasdaq 100 index, with analysts pointing to AI, satellite connectivity and space-enabled solutions as key growth drivers.Deutsche Bank, RBC Capital Markets and Morgan Stanley initiated coverage of SpaceX with their highest ratings.SpaceX shares slumped 6.8%.Gold fell 1.1% to $4,122.80 per troy ounce, while silver lost 2.9% to $60.52 per ounce.

Dow JonesNasdaq CompositeS&P 500$AMAT$AMD$INTC$MRVL$MU$NVDA$SPCX$WDC
Truist Earnings Path Uncertain Amid Leadership Changes, Rate Hike Prospects, UBS Says in Downgrade
US Markets

Truist Earnings Path Uncertain Amid Leadership Changes, Rate Hike Prospects, UBS Says in Downgrade

Truist Financial's (TFC) upcoming leadership changes and the growing prospects of a Federal Reserve rate hike have introduced fresh uncertainty to the financial service company's earnings potential in the near term, UBS Securities said Tuesday.The brokerage downgraded its rating on the Truist stock to neutral from buy and reduced its price target to $55 from $58.Last month, the company said Michael Lyons will become its chief executive, effective Sept. 1, replacing Bill Rogers, who will assume the executive chair role."While (Truist's) shares have lagged peers this year, the recently announced CEO change and the prospect of rate hikes in the forward curve cloud near-term visibility on the leadership roster, talent retention, near-term (earnings-per-share) power, and recently introduced medium-term targets," UBS analyst Erika Najarian said in a note to clients Tuesday. "Until Mr. Lyons firms his leadership line-up, (Truist) could be vulnerable to talent turnover."The prospects of the Fed tightening its monetary policy this year have increased amid growing inflationary concerns recently.UBS lowered its EPS outlook for Truist to $4.50 from $4.60 for 2026 and to $5 from $5.15 for next year."While valuation is undemanding, we think (Truist) may be a value trap, as the market awaits the potential for revisions on leadership, strategy, and financial targets on the back of a new outsider CEO appointment," Najarian said. "Even if these first moves are executed well, it will likely take time for financial results to reflect these changes."Earlier this month, Morgan Stanley downgraded its ratings on the stocks of Truist and Prosperity Bancshares (PB), saying the companies are bracing for a more intense competition for deposits in the medium term, which could hurt their earnings.Price: $51.51, Change: $+0.09, Percent Change: +0.18%

$PB$TFC