7th Jul 2021 10:21
(Alliance News) - Vistry Group PLC on Wednesday said it performed "significantly ahead" of its initial expectations in the first half of 2021, due to strong customer demand across all areas of its business.
The Kent, England-based housebuilder said it was "confident" of its ability to deliver consensus market expectations in 2021. Vistry previously guided to adjusted pretax profit of at least GBP310 million for 2021. It booked adjusted pretax profit of GBP143.9 million in 2020, down from GBP188.2 million in 2019.
At the half year point of 2021, the company said it is on track to deliver 6,500 units with a 22% adjusted gross margin in 2021. In 2020, Vistry completed 4,652 units with an 18% adjusted gross margin.
Unit completions hit 3,126 in the first half, more than double the 1,235 completions in the same period a year prior.
The average unit selling price rose slightly to GBP299,000 in the first half, from GBP294,000 a year prior.
While higher demand boosted the housebuilders average weekly private sales rate in the first half to 0.76, up 10% from 0.45 the previous year.
The company continued to expand its land holdings in the first half, securing 4,143 plots across 20 developments - enough to fulfil the firm's 2022 forecast unit completions.
While the group's affordable homes and regeneration unit, Vistry Partnerships, secured 1,499 plots for mixed-tenure development, providing 98% of the land required to meet to meet its 2022 targets of GBP1 billion in revenue and an adjusted operating margin of 10%.
On June 30, Vistry had net cash position of GBP32 million.
The company said it was positive about its second half and maintains its expectations for 2022.
Chief Executive Greg Fitzgerald noted: "Market trends remain positive and we are seeing good demand for completions beyond the end of the stamp duty holiday. There is some pressure across the material supply chain in terms of price increases and extended lead times, but we are working well with our partners to ensure successful delivery of our build programme and expect this position to ease through the second half. House price inflation is more than offsetting any cost pressure."
"With 93% of forecast FY21 units already secured, a significantly higher level than in prior years, we are well positioned for the full year and are positive on the outlook as the strategic benefits of the enlarged group are starting to be realised," Fitzgerald added.
Vistry's half-year results will be released on September 7.
Shares in Vistry were trading down 0.3% at 1,209.00 pence each in London on Wednesday morning.
By Scarlett Butler; [email protected]
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