Profit alert wipes £1.2bn off value of homebuilder Vistry

More than £1bn was wiped off the value of the homebuilder Vistry yesterday after it said building costs on some of its projects had been "understated" and issued a profit warning.

- Julia Kollewe

The company, previously known as Bovis Homes, said the total completion cost for nine of its 46 developments in its Basingstoke-based south division, including some large schemes, had been understated by 10% of the total build costs. Vistry predicted this would probably reduce profits by a total of £115m - £80m this year, £30m next year, and £5m in 2026. The company now expects profits this year to come in at £350m, well below the £419m it made last year, after predicting a profit increase as recently as last month.

Shares slumped by 28% after the announcement, making it the top faller on the FTSE 100 and wiping £1.2bn off its market value, down to about £3bn.