UK stocks finished the trading week on a downturn, with the FTSE 100 index dropping 0.84% at close. A local homebuilder's warning about rising costs in one of its divisions raised concerns among investors. Vistry Group ($VTY) experienced the most significant decline among FTSE 100 members, plummeting 15.51% by Friday's close after issuing its second profit warning in just a month.
The British housebuilder cited additional challenges stemming from its South division and lowered expectations for project completion. It now estimates its adjusted profit before tax for 2024 to be around 300 million pounds sterling, a step down from the previous forecast of 350 million pounds published in October. "We are now more assured than we were before that the main cost reporting issues are primarily managed within the Southern Division, and it appears that personnel, rather than control systems, contributed to the challenges faced by Vistry," stated RBC Capital Markets, which maintains a sector perform rating for the company.
"Our projections may adjust again in January when we anticipate revised guidance. However, based on the current statement and the analysis call, we have reduced our volume forecasts, adjusted our gross margin assumptions due to increased build costs in the South division, and modified operating costs related to National Insurance Contributions." Conversely, International Consolidated Airlines Group ($IAG), the parent company of British Airways, was a notable success story, seeing an increase of 7.18% after announcing a £350 million share buyback while also reporting improved profit and revenue figures for the third quarter.
Looking to the future, IAG expects this robust financial performance to persist throughout the remainder of 2024. In other corporate developments, AstraZeneca ($AZN) and Amgen reported positive outcomes for their Tezspire drug, aimed at treating chronic rhinosinusitis with nasal polyps in adults, during its phase 3 clinical trial known as Waypoint.
As a result, the British-Swedish pharmaceutical giant saw a 1.83% increase in its stock price after market hours. Next week promises to be eventful for UK financial markets, with a packed data calendar including updates on the labor market due on November 12, alongside Gross Domestic Product, trade balance, industrial and manufacturing production, services output, and construction metrics on November 14..