Only a few weeks ago Greg Fitzgerald, the chief executive and executive chairman of Vistry, said that his decision to go all-in on building affordable homes for housing associations and local councils might soon look “inspired”.
The move appears markedly less visionary following Vistry’s admission that it has underestimated the cost of completing nine developments in southern England. Britain’s second-biggest developer expects the budgeting bungle will sap £115 million from its profits over the next three years.
In the brief stock exchange update, Vistry did not explain exactly precisely what had gone on. All it would say was that its southern England division, its biggest regional business, had “understated” build costs.
• Vistry share price tumbles after profit warning
The miscalculations came to light on