Vistry holds guidance despite 33% fall in earnings

(Sharecast News) - House builder Vistry held full year guidance and said it expected to deliver a year-on-year increase in profits this fiscal year despite an uncertain economic environment that saw interim earnings fall by more than a third. Pre-tax profit came 33% lower at £80.6m for the six months to June 30, with completions down 12% to 6,889 units. Vistry is pinning its hopes on the government's £39bn social and affordable home programme.

However, it said trading in the second quarter had softened "reflecting increased macro concerns and ongoing affordability challenges, particularly for first time buyers, with expected interest rate cuts being pushed further out".

Persistent inflation has forced the Bank of England to delay rate cuts putting struggling households under even more pressure amid a weak macroeconomic environment.

Reporting by Frank Prenesti for Sharecast.com