Shares plunge for housebuilder Vistry after new profit warning

Shares in the FTSE 100 housebuilder Vistry have plunged after it issued a second profit warning in as many months and said cost overruns on building projects were worse than previously thought.

- Mark Sweney

Vistry was the top faller on the blue chip index of stocks on Friday morning. The builder's shares closed down 15.5% yesterday.

Last month, Vistry launched an independent review of operations in its south division after revealing it had "understated" total build costs by about 10%.

The company said at the time that this would probably reduce profits by £115m over the next two years. The news sent its shares plummeting, wiping £1bn off the company's value.