Housebuilder’s shares plunge as accounting fiasco deepens

Shares in housebuilder Vistry have plunged after a miscalculation of the cost of nine developments was worse than expected.

The housebuilder sank as much as 20.9pc, dropping to the bottom of the FTSE 100 and wiping more than £606m off the value of the company.

It comes after the developer said profits over the next three years would be £50m worse than outlined in a profit warning last month.

Vistry – formerly known as Bovis Homes – said pre-tax profits in its south division would be hit by £105m this year, £50m next year and £10m in 2026.

It had previously said it would suffer a blow of £80m, £30m and £5m in each year after underestimating the costs for nine out of 46 developments by around 10pc.

Its shares are down 45pc since the original profit warning on October 8, wiping more than £1.9bn off its value.

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