Embattled UK housebuilder Vistry said pre-tax losses in the first half of the year were more than twice as much as it had previously warned, saying it would take steps to become a smaller, simplified company amid a challenging housing market.

The housebuilder announced an adjusted pre-tax loss of £83.3mn, compared with a profit of £80.6mn a year earlier. Shares slid 9 per cent in morning trading. Chief executive Adam Daniels said a review found it had become too sprawling and needed to rein in costs and tighten operations.

Approximately £50mn of losses related to the chief executive review, with pricing discounts and accelerated asset sales also playing a role. Vistry cut its annual profit outlook to £165mn and said it expected margins to improve in the second half and did not anticipate a need to raise equity.

The company now plans to deliver 12,000 homes a year over the medium term, down from 20,000, and will reduce the number of regions it oversees. It completed more than 15,000 homes in 2025 and 17,000 in 2024.