Vistry shares rise as housebuilder looks to build over 17,500 new homes
Shares in Kent-based housebuilder Vistry rose on Thursday after it unveiled its full year results, which showed it was on track to deliver strong growth in completions in 2024, against a backdrop of a pick-up in demand and easing mortgage rates.
The company, formerly Bovis Homes, has been expanding its partnership model, where it ties-up with housing associations, other public sector businesses and private rented sector (PRS) providers, to deliver private, affordable and PRS housing.
READ MORE: Housebuilder Vistry confident on 2024 as partnerships model shows resilience
It said it was targeting over 17,500 units (homes) in full year to end-December 2024, having built 16,118 new homes in 2023, down only 5.4% on the proforma prior year.
Its forward sales position was at £4.6bn, of which £2.1bn is for delivery this year, it said, noting that it had seen a "notable" pick‐up in demand from the PRS providers in recent months.
In the 12 months to end-December, adjusted profit before tax came in at £419.1 million, up from a restated £418 million in 2022 on adjusted revenue of £4.04 billion (2022: £3.1 billion).
The company said it remained "confident" of achieving a 40% ROCE and £800m operating profit in the medium term, and returning £1bn of capital to shareholders over the next three years
"We see high demand for mixed tenure housing and regeneration across the country and are uniquely placed to deliver on this market opportunity, helping address the country's acute need for housing," said Greg Fitzgerald, the chief executive in a statement.
"It has been another busy year at Vistry and I am extremely grateful to all Vistry's employees, the Group's suppliers, and our highly valued Partners for their hard work and commitment.
"The business has started the year with a real passion and commitment to deliver on its strategy and medium‐term financial targets, and we expect to make good progress during 2024."
Shares in London added around 8% on Thursday.
