FTSE 250 housebuilder Vistry Group is pushing ahead with a sweeping restructuring programme aimed at reducing debt, simplifying operations and restoring profitability.

The Kent-based builder, which specialises in mixed-tenure and affordable housing developments, warned that trading conditions in the UK housing market remain challenging, citing affordability pressures, cautious consumer sentiment and wider economic uncertainty.

However, the company said it was taking "decisive action" to reshape the business following a strategic review launched by chief executive Adam Daniels, who took the helm in April.

Measures include reducing headcount, cutting the number of operating regions from 25 to 12 and reshaping the group's land bank. Management teams for the new regional structure have now been appointed, with the streamlined model due to be fully operational from January.

Vistry also confirmed the appointment of Helen Miles as CFO, with experienced finance executive Robert Allen serving as interim CFO ahead of her arrival in 2027. Miles is currently CFO of Severn Trent, the FTSE 100 water utility.

In a trading update covering the period from 1 July to date, Daniels said the company remained focused on restoring financial discipline.

Daniels said: “Since announcing the conclusions of the CEO Review in September, we have continued to take decisive action to create a smaller, more focused and disciplined business. Our immediate priorities remain generating cash, lowering financial leverage, improving operational control and reducing complexity, whilst maintaining tight commercial discipline.

“We have also started the difficult but necessary process of reducing headcount and restructuring the operating regions from 25 to 12. The MDs and their management teams have been confirmed, and the new structure will be in place and operational from January."

The company expects average daily net debt of around £800m during the second half but said it remains on track to reduce leverage and expects year-end debt levels to be within analyst forecasts. It has also begun refinancing its £900m term loan and revolving credit facility as part of efforts to strengthen the balance sheet.

Vistry has already secured a £350m grant agreement with Homes England, started reshaping its land portfolio and commenced refinancing discussions.

Despite weak market conditions, Vistry said it was making good progress towards delivering £50m of annualised savings by 2027 and continues to benefit from a strong pipeline of affordable housing projects supported by allocations under the Social and Affordable Housing Programme 2026-2036.

The builder's forward order book stood at £3.1bn, although it cautioned that some uncertainty remains around the timing of transactions in the final quarter.

Daniels added: "I have no doubt that Vistry is capable of generating consistent, cash-backed growth in earnings and attractive returns on capital, which will create great value for all our stakeholders.”

Shares fell around 4% on Thursday.

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