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The Financial Reporting Council (FRC) has opened an investigation into the conduct of two accountants following a series of profit warnings at housebuilder Vistry.
According to the regulator, it is examining financial reporting and forecasting within the south division of the FTSE 250 company for 2023 and 2024.
Vistry first alerted the market in October 2024 that it had underestimated project costs in the division by approximately 10%. An initial estimated hit to pre-tax profits of £115m later rose to £165m after further reviews identified cost issues at 18 projects.
The two individuals under investigation are former employees of the company. The regulator’s conduct committee made the decision to investigate on 21 October 2025.
Executive counsel for the FRC will lead the investigation under the accountancy scheme. This framework allows for fines or professional bans if conduct falls significantly short of expected standards.
The probe follows a 25.6% drop in the Vistry share price last week. The company reported that margins would face pressure despite growth in revenue and profit.
The company stated it would cooperate fully with the FRC. A spokesperson for Vistry said: “The matter is limited to these two individuals and, as the Financial Reporting Council 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.”
