Housebuilder’s shares plunge as accounting fiasco deepens

Shares in housebuilder Vistry plunged as trading began after it a miscalculation of the cost of nine developments was worse than expected.

The housebuilder sank as much as 15.1pc, dropping to the bottom of the FTSE 100 and wiping more than £439m off the value of the company after, should the drop hold.

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 blow of £80m, £30m and £5m after underestimating the costs for nine out of 46 developments by around 10pc.

Its shares are down 42pc since the original profit warning on October 8, wiping nearly £1.8bn off the value of the business.

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