Upbeat Vistry to exceed profit forecasts this year

Aaron Morby 3 years ago
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House builder Vistry this morning predicted it would beat profit forecasts this year after a strong start to 2021.

Fitzgerald said long term supplier agreements signed at the formation of Vistry Group are providing some protection from materials inflation
Fitzgerald said long term supplier agreements signed at the formation of Vistry Group are providing some protection from materials inflation

Chief executive Greg Fitzgerald said the firm was on track to deliver a significant jump in completions this year amid strong demand across all areas of the business.

House building is on track to deliver 6,500 units, ahead of previous guidance, and an improvement in adjusted gross margin to 22%, even in the face of ‘modest levels’ of build cost inflation across both  labour and material supplies.

Fitzgerald said supply chain agreements entered into on the formation of Vistry Group were providing some protection against material price inflation during a period of high demand.

Vistry’s expanding partnerships business also expects to deliver significant growth in higher-margin mixed tenure completions this year and is on track to meet its 2022 target of £1bn revenue and over 10% operating margins.

Fitgerald said: “It has been a very positive start to the year with strong demand across all areas of our business and our private sales rate increasing to 0.75.”

This is an increase of 70% on the equivalent rate for 2020 and 21% increase on the 2019 pro forma rates.

“As we approach the end of our first half, we anticipate results for the six months will be well ahead of our previous expectations,”  he added.

Vistry had previously been expected to deliver pre-tax profit of £310m this year and now expects this to exceed £325m.

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