Housebuilder Vistry Group has seen “no impact” on the market from the third Covid-19 lockdown, with its chief executive hailing forward sales and an expected boost to profit this year.
The group – formed through a merger of Bovis Homes and Galliford Try’s Linden Homes division – said in a trading update that profit for the year to 31 December 2020 is likely to be at the top end of its expected range, at around £140m. Next year, that figure is expected to be £310m.
The company’s private sales rate per week has risen by 15% during the second half of the year to 0.62, with customers continuing to reserve homes during the second lockdown in November. More than half of properties due in 2021 across its Housebuilding and Partnership mixed-tenure divisions are already secured.
“We are alert to the wider market uncertainty, including the potential implications of the most recent lockdown, as well as for housebuilding specifically the changes from an end to the stamp duty holiday and existing Help to Buy scheme,” the trading update said.
“We are encouraged by the strength of the market in 2020 and the levels of demand during the second national lockdown in November, and whilst very early, we have seen no impact from this third national lockdown.”
Chief executive Greg Fitzgerald said that the company should be able to lift the cost savings expected through the Bovis-Galliford Try tie-up. “At the start of the year our priority was to successfully integrate the housing businesses and maximise the very significant benefits from the exciting new combination,” he said. “We expect to deliver the full run rate of synergies of £44m by the end of FY21, 27% greater than initially expected and achieved at a lower cost.”
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