Housebuilder Vistry Group is set to shed 200 jobs and is expecting a £40 million reduction in its profits.

The firm, which has an office in Bishop's Cleeve, today provided a scheduled update on trading for the period from 1 July 2023 to date.

The group is targeting adjusted profit before tax of £450m for FY23, excluding the impact of transitioning the Housebuilding business to Partnerships, as previously advised

In September, the group announced its updated strategy to fully focus its operations on its high growth Partnerships model, increasing its delivery of much needed affordable mixed tenure housing across the country.

It says the implementation is making good progress with the revised operating structure and senior appointments confirmed, and the employee consultation process concluded.

The group will operate as a single business with 27 regional business units, a reduction from 32, and the group's overall headcount will reduce by around 200 as a result of this restructuring.

The statement said: "The group has the capacity within this infrastructure to deliver upon its medium-term growth targets, with greater use of standardisation and timber frame manufacturing. The group expects to deliver c. £25m of annualised cost savings from this integration of Partnerships and Housebuilding, in addition to the £60m of synergies from the Countryside acquisition.

"The ongoing acute need for affordable mixed tenure housing across all areas of the country continues to drive demand and we have received positive endorsement of our strategy from a wide range of our partners.

"Increasing the supply of affordable and sustainable homes through our Partnerships model is at the core of Vistry's purpose and gives us confidence in delivering on our medium-term targets."