Vistry has said it expects profits to be at the top end of market forecasts, ahead of today’s AGM.
In a trading update for the year to date, the housebuilder said it was in a “very strong forward sales position” of £2.5bn, up from the £1.94bn logged last May. It added that 83% of the total forecast units for 2022 had been secured.
Speaking ahead of the housebuilder’s AGM this afternoon, chief executive Greg Fitzgerald said: “Despite the macro uncertainties, Vistry’s very strong start to the year has continued. We are trading ahead of expectations and expect our margins for both housebuilding and partnerships in 2022 to exceed our previous targets.”
He added that, despite uncertainties in the wider markets, he expected Vistry to deliver profit “at the top end of market expectations for 2022”, which would equate to around £415m., approximately £100m more than last year.
Fitzgerald added that materials supply issues had eased. “And while we continue to see build cost inflation in line with previous assumptions, this is being more than offset by price increases.”
In the year to date, Vistry’s housebuilding arm has secured 2,750 plots, down from 2021’s 3,230, across 13 developments, with 95% of the land required for 2023 completions secured. The partnerships arm has secured 1,666 plots on eight sites, up from last year’s 1,177 plots on five sites, with 87% of the land required for 2023 secured.
Fitzgerald said: “With our strong strategic land capability, we remain focused on strategically sourced land and are targeting 30% of total completions to be delivered from higher-margin strategic land in the medium term. In the year to date, we have pulled through 1,852 strategic land plots across five sites into the owned landbank.”
He added that further remediation costs as a result of the Developer Pledge will be in the range of £35m to £50m, in addition to the group’s existing fire safety provision of £25.2m.
Today will also mark Ian Tyler’s last day as chair, with Ralph Findley stepping into the role.
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