Vistry Group: Transitioning to smaller, more focused business targeting 12k completions; FY26/27E guidance likely to culminate in hsd downgrades with H1 impairment of £475m taken

Our Take: Vistry has reported H1 results with a PBT loss of £83.3m vs. guidance in July for PBT to be a loss of approximately £30m. However, the focus is likely to be on the CEO review, which has now been completed and the company will as a result transition to a smaller, more focused business targeting approximately 12,000 completions per annum over the medium term with a targeted tenure mix of 60% Partner Funded and 40% Open Market. Its five-year targets now include: (i) Target ROCE of more than 30% and 12% operating margin by FY31; (ii) Capital employed expected to reduce to approximately £1.5bn; (iii) Average daily net debt targeted to reduce to c. £300m by FY29, stabilising thereafter;