8th Jul 2022 08:36
(Alliance News) - Vistry Group PLC on Friday said it "significantly exceeded" its expectations in the first-half of 2022 as it expects further sales growth of a skyrocketing and booming UK housing market.
The Kent, England-based housebuilder puts its expected adjusted pretax profit for 2022 at the top end of market forecasts, around GBP417.0 million.
The company's forward sales jumped to a total GBP2.14 billion as at June 30, up 16% from GBP1.85 billion a year ago. It secured 2,166 plots through partnerships in 2022's first half, compared to 1,499 a year ago.
Its adjusted gross margin is expected to be ahead of its 23% target. First half completions increased to 3,219 units from 3,126 a year earlier.
"Demand has been strong across all areas of the business and our forward sales positions further strengthened," Chief Executive Officer Greg Fitzgerald commented. "Whilst mindful of the wider economic uncertainties, we are positive on the outlook for the group and expect to see significant margin progression in the full year."
Vistry added: "Given the positive trading in the first half and in particular the strong price increases, we expect margins in both housebuilding and partnerships in the year to be ahead of our 2022 targets."
Vistry said planning "remains the single most significant constraint on the business". It noted a tricky political and regulatory environment, particularly around nutrient neutrality.
"We are responding proactively by factoring longer lead times into our site forecasting, which enhances our control, and increasing our senior expertise in these areas. Our strong balance sheet and breadth of operations provide confidence and resilience to cope with any specific issues," the company added.
The firm explained "surplus capital, following investment in the business to support the group's growth strategy and the payment of ordinary dividend, would be returned to shareholders".
The update from Vistry comes a day after Halifax data showed no slowdown in the UK housing market boom.
UK house prices rose 13% yearly in June, the strongest growth since late 2004, accelerating from an 11% rise in May.
Monthly, prices rose 1.8%, hitting an average of GBP294,845, another record high. House prices have now risen for 12 months on-the-bounce, the Halifax tracker showed.
Vistry shares were up 1.0% to 822.00 pence each in London on Friday morning.
By Tom Budszus; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Vistry Grp