Vistry makes good start to year, bolstered by partnership model
Kent-based housebuilder Vistry revealed it was on track to deliver more than 10% growth in completions in full year 2024, with its half and full- year profit expected to be ahead of last year.
Updating on trading from the beginning of this year to now, the company, formerly Bovis Homes, said its partnerships model was clearly showing "market resilience" and that it continued to see attractive opportunities meeting the company's requirements for a minimum of 50% of units to be partner funded, a 40% return on capital employed and over 12% operating margin.
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Vistry partners with housing associations, other public sector businesses and private rented sector (PRS) providers, to deliver private, affordable and PRS housing.
Demand from Registered Providers (RPs) for affordable homes had remained robust, said Vistry, with For Profit Registered Providers, a high growth sub-sector of this market, continuing to demonstrate strong demand.
The group said it was on track to deliver more than 18,000 (FY23: 16,118) completions in FY24, an increase of more than 10% on prior year and up from its previous expectation of 17,500 units.
This was underpinned by a strong forward sales position which is up 10% on the prior year and totals £4.9bn (2023: £4.5bn) as at 15 May 2024, of which £2.1bn is for delivery this year, it added.
"We expect half year and full year profit to be ahead of last year and remain confident in achieving a 40% ROCE and £800m operating profit in the medium term," the firm told investors.
"We remain committed to returning £1bn of capital to our shareholders over the next three years with our latest £100m share buyback programme commencing as planned in April, purchasing £18m of shares to date."
Vistry added that it was focused on driving operational and capital efficiency across all 26 business units and expects to release capital in FY24.
"Our timber frame operations will step up delivery in this year, with around 4,000 of our new homes to use our timber frames and further significant growth planned in 2025," it added.
