Three stocks in the FTSE’s second tier of listed companies saw their share prices fall by more than half since July 2024. Here’s a look at two of the them, Vistry Group (LSE:VTY) and Aston Martin Lagonda (LSE:AML). The third, by the way, was Wizz Air, but I don’t go into it here.
Bricks and mortar
Investor confidence in Vistry, the affordable homes builder, was shaken when it had to admit that it got its sums wrong when calculating the costs on some of its projects. To compound matters, it then had to confess that it had underestimated the total impact. Not surprisingly, the shares are now (14 July) changing hands for 55% less than they were 12 months ago.
But there could be an opportunity here. I think it’s highly unlikely that a similar mistake will be repeated. I reckon those spreadsheets have been (at least) triple-checked. And I suspect even more reviews are now being carried out prior to market-sensitive calculations being released.
I hope so because, in my opinion, the group’s in a great position to benefit from the planned increase in the number of affordable homes being built. The government’s spending review allocated an additional £39bn for social housing over the next 10 years. Excluding the impact of this, the group has a £4.3bn order book.
Of course, there’s no guarantee that the housing market will recover. And build cost inflation continues to be an issue for the sector. But encouragingly, current trading’s in line with expectations. Also, debt’s lower than forecast. And thanks to many of its partners providing land, the group operates a ‘capital light’ business model.
For these reasons, I think Vistry Group could be worth considering by long-term investors.
A US casualty
I’m less bullish about Aston Martin.
The luxury sports car maker’s share price suffered due to President Trump’s ‘on-off’ approach to tariffs. Buyers on the other side of the Atlantic are a key market for the group. The Americas contributed just under 40% of revenue in 2024.
Initially, it faced a 27.5% tax on imports into the US. Now, the UK’s negotiated a reduction to 10% for the first 100,000 cars. In 2024, the country exported 102,000.
Over the past 12 months, the stock’s fallen 50%.
Although it could have been worse, US trade policy isn’t going to help the group move into the black. It recorded a pre-tax loss of £79.6m on the 950 cars it made during the first quarter of 2025.
But losses must be funded. That’s why Aston Martin had to raise some more cash (debt and equity) towards the end of 2024. Another concern is that it appears to be lagging behind some of its rivals when it comes to electrifying its range. But it hopes to rectify this with the imminent launch of its Valhalla hybrid.
It’s sad to see a British icon — with a cool brand, impressive pedigree, and amazing cars – struggle. But this is nothing new. Since its formation in 1913, it’s gone bust seven times.
It’s too risky for me.
