Vistry's financial performance for FY23 expected to be ahead of guidance with 'strong run into the year'

Housebuilder Vistry Group’s financial performance for FY23 is expected to be ahead of guidance, with adjusted profit before tax expected to be in line with the year before (FY22: £418.4m).

Total completions were down only 5.4% to 16,124 units (FY22: 17,038), which the group believes reflects the resilience of its partnerships model.

The group reports in its trading update that it proactively managed cost base with our key supply chain partners, resulting in material and labour cost reductions in H2.

Vistry remained active in the land market despite market uncertainty in FY23, securing 13,067 (FY22: 8,547) plots. 

It saw a year-end net debt of c. £90m (31st December 2022 net cash: £118.2m) in-line with guidance and significantly down from 30st June 2023 position (net debt: £328.7m) 

The group predicts a strong forward sales position up 12.4% on prior year at £4.5bn (31st December 2022: £4bn). 

Within the industry Vistry saw good levels of demand for affordable homes from registered providers (RPs), and local authorities (LAs), and a notable increase in demand from the PRS in Q4 and into 2024.

It also noted that the transition of the group’s former housebuilding landbank to the partnerships model is making good progress with new partnerships and pre-sale agreements progressing well.

Greg Fitzgerald, CEO at Vistry, commented: “The group had a strong run into the year end and I’m pleased to report that adjusted profit before tax for FY23 is anticipated to be ahead of guidance.

“Our FY23 performance has demonstrated the resilience of Vistry’s unique Partnerships model. 

“Looking ahead, working with our highly valued partners we are committed to increasing the delivery of much needed homes across the country, and in the fourth quarter have continued to secure exciting new developments that reflect our high return, asset-light partnerships model. 

“Our forward sales of £4.5bn is up 12.4% on the prior year and positions us well to deliver a step-up in total completions in FY24 and make progress towards our medium-term targets and the return of £1bn of capital to shareholders.”

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