Finance watchdog opens probe into accountants at Vistry’s south division

The Financial Reporting Council (FRC) has begun an investigation into the conduct of two individual accountants in relation to the forecasting and financial reporting within the south division of housebuilder Vistry Group.

It said the probe covers the 2023 and 2024 financial years and added: “The investigation does not relate to any persons or entities other than the relevant individuals and it would not be fair to treat any part of this announcement as constituting or evidencing an investigation into any other persons or entities.”

Vistry issued several profit warnings in 2024 which related to its South business and in October that year the firm said that an initial expected £115m hit to pre-tax profit over a three year period had risen to £165m.

It said this included a £105m hit in 2024, instead of £80m as previously forecast, £50m in 2023, a figure which was previously £30m, and £10m in 2026, instead of a forecasted £4m. The individual accountants are not named by FRC.

In a statement, Vistry said: “Vistry confirms that the individuals referenced are former employees of the group.

“Vistry will cooperate fully with the investigation and provide any assistance required.

“The matter is limited to these two individuals and, as the FRC has stated, the opening of an investigation does not indicate that the FRC has made, or will make, any findings of misconduct in relation to the individuals concerned.”

Vistry, in a trading update in November 2024, said a forensics team from a large accounting firm carried out an independent review focused on the cost reporting process, culture and management in its south division along with a wider review across the group.

It said the review found that the significant issues have been found to be “confined to the south division and can be attributed to “insufficient management capability, non-compliant commercial forecasting processes and poor divisional culture”