Vistry invites staff to apply for ‘voluntary exit’ from company

Vistry has today given more details of its proposed “voluntary exit“ plan that it sent in a memo to its 4,500-strong workforce last week.

The housebuilder issued a message from chief executive Adam Daniels to staff announcing the launch of its so-called voluntary exit scheme (VES).

Daniels, who was appointed chief executive of the £4bn-turnover firm in April, said: “We are introducing the VES to provide an opportunity for colleagues who feel their future may lie outside Vistry to apply to leave the business on enhanced terms.

“We recognise that, for some, personal and financial commitments can make it difficult to take that step, even where there is uncertainty about their longer-term alignment with Vistry and our goals.

”The VES is intended to provide additional support in those circumstances and more broadly for colleagues that their future may lie outside Vistry.”

But Stephen Teagle, chief executive for partnerships and regeneration at the firm, this morning told Building the scheme is not offering redundancy and is an “opportunity for people to choose to move on if they don’t feel aligned to the business”.

He said: “The scheme is entirely voluntary and is designed to provide additional flexibility and support for colleagues who feel their future may lie outside the business. There is no requirement or expectation for any colleague to participate.”

It is not clear what the “additional flexibility and support” being offered consists of or what the “enhanced terms” are. Teagle said the voluntary exit scheme is part of its commitment to ensure Vistry remains aligned to its objectives.

These include ensuring the firm “remains focused on delivering its partnerships strategy, improving operational performance, maintaining cash discipline and positioning the business for long-term sustainable growth”.

The VES is open for applications until 21 June. Daniels said in his memo not all applications will be approved and will be considered on a case-by-case basis.

Vistry has been in the headlines over the past few weeks following a profit warning and falling share price.

It said last month that its first half profit for the six months to 30 June will be “significantly lower” than for the same period last year due to the impact of discounting market homes to drive sales.

The discounts are part of a strategy to boost cash generation, along with other measures including delaying or slowing the building of some sites to ensure alignment between build and sales rates.

The housebuilder’s share price has fallen by two thirds in the past four months, from the 737p reported on 12 February to 230p today, amid a rise in short-selling of its stock.