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Vistry Group Reports Profit Drop Despite Revenue Growth

Vistry Group Plc sees profit fall sharply, yet revenue grows. Investors should note the company's expectations for continued progress in fiscal 2025.

Date: 
AI Rating:   4

Earnings Per Share (EPS)
In fiscal 2024, the EPS fell to 21.8 pence from 61.3 pence in the prior year. This significant decrease is a negative indicator for investors as it reflects reduced profitability.

Revenue Growth
Despite the drop in profits, Vistry Group reported a 6 percent increase in annual revenue, reaching 3.78 billion pounds. Adjusted revenues rose 7 percent year-over-year, which is a positive development.

Net Income
Profit before tax decreased significantly by 64 percent to 104.9 million pounds from the previous year's 293.0 million pounds. This stark decline suggests underlying challenges that may impact future stock valuation.

Profit Margins
The adjusted profit before tax fell to 263.5 million pounds compared to 407.3 million pounds from the prior year, indicating reduced profit margins.

Future Outlook
The company anticipates profit improvements in fiscal 2025, with plans to reduce excess working capital by around 200 million pounds. They also target a 40 percent return on capital and a 12 percent+ operating margin. Revenue growth expectations range from 5 percent to 8 percent annually, which may help regain investor confidence.

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