Adjusted operating profits for the housebuilder were 拢129.7m, down from 拢161m in the first half of 2025. Adjusted operating margins were 7.7%, down from 9.7%. Profit before tax and exceptional items fell from 拢148.1m, to 拢118.6m; in 2025, however the group had recorded an exceptional charge of 拢222.2m, covering cladding fire safety provision, leading to a loss .before tax of 拢92.1m
Net cash fell from 拢326.6m to 拢168.6m, a 48.4% fall. Jennie Daly, chief executive, said, "We are managing the business tightly, controlling costs and building resilience for an improved housing market when it comes. Reflecting the prolonged nature of the downturn which has reduced expected profitability and cash generation, the board has reviewed the level of cash returns and deemed it prudent to revise our distribution policy to preserve balance sheet strength, retain financial flexibility and support our commitment to optimising shareholder returns through the cycle."
The group completed 4,723 homes in the first half, down from 4,894 at this point last year. Net private sales fell slightly to 0.75 per outlet per week, from 0.79 last year.
The company said the market remains uncertain following a more challenging second quarter, where affordability constraints and increased geopolitical uncertainty impacted customer sentiment and behaviour. While underlying customer demand continues to be good, conversion is taking longer and buyers remain highly price conscious.
The group expects year end net cash of around 拢250m, after a further 拢100m of outflows related to cladding.
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