Vistry Suppliers Face Potential Trade Credit Cover Cuts 

Credit insurance cover for suppliers to Vistry could be reduced by as much as 70% in some cases, as the housebuilder steps up efforts to improve cash generation and reduce its net debt.

Industry sources said Allianz Trade has recently been notifying suppliers that it is reducing credit limits for new trading with Vistry. The final level of insurance cover is reportedly expected to depend on the housebuilder’s financial performance over the coming weeks.

Suppliers can continue trading with Vistry without credit insurance or seek alternative cover from other providers, meaning the changes do not necessarily prevent companies from continuing their commercial relationships with the housebuilder.

The latest development comes as Vistry continues its wider balance sheet restructuring. The group reported net debt of £470 million at the half-year and has made cash generation a key priority under chief executive Adam Daniels, who took over in April.

As part of its efforts to strengthen its financial position and rebuild confidence across its supply chain, Vistry has introduced several measures, including prioritising faster payments to suppliers, selling completed homes at discounted prices, reducing construction activity and accelerating cash collection.

The housebuilder is facing challenging conditions in the UK residential property market, alongside pressure from its elevated debt levels.

Vistry reported an underlying pre-tax loss of £30 million for the first half of the year and also confirmed the departure of finance director Tim Lawlor.

The company’s financial difficulties have also weighed heavily on its share price, with Vistry shares falling by almost 80% over the past two years.

A Vistry spokesperson said: “Credit insurers continue to provide substantial cover for our supply chain which more than meets the Group’s requirements on an ongoing basis.

“We are not aware of any supplier withdrawing trade from Vistry due to credit insurance changes and we have seen no interruptions to our supply chain.

“We maintain positive relationships with our suppliers as we continue to build at scale and pace, delivering the high-quality homes this country needs.”