Vistry shares slide after report insurer cut credit cover for suppliers

Shares in Vistry dropped on Tuesday after reports that a trade credit insurer had reduced the cover it provides to suppliers dealing with the UK housebuilder. Trade credit insurance underwrites the risk that a customer fails to pay for goods delivered on credit. A reduction in available cover typically forces suppliers either to demand tighter payment terms or to limit the volume of work they take on, and has historically been treated by the construction sector as an early warning indicator of financial stress at a contractor. Vistry has been under pressure since a series of cost misstatements in its partnerships division prompted profit warnings and management changes. The company has not publicly confirmed the reported change in insurance cover.