9th Nov 2021 11:19
(Alliance News) - Vistry Group PLC on Tuesday said it continued to see strong demand across all business areas in the four months to November 8.
The Kings Hill, England house-building company said average weekly private sales rate increasing to 0.77 for the year to date, slightly ahead of the 0.76 reported in the first half of 2021. Pricing also has continued to move forward across all areas, although more modestly, the company noted.
Vistry warned, however, that it continues to see some pressure across the building materials supply chain resulting in extended lead times and inflationary price increases on some products. The company said it is actively managing this and has full visibility on its material requirements for 2021 completions.
Vistry said it expects its build cost inflation to run at 4% to 5% for the next 12 months with materials pressure reducing and labour inflation continuing. Overall, the company said it has seen the benefit from sales price increases, as it more than offset cost inflation.
"We continue to see strong demand across all our business areas and working in close partnership with our supply chain, we are actively mitigating any supply chain pressures. As a result, we are firmly on track to deliver a significant improvement in profits this year," said Chief Executive Greg Fitzgerald.
The company said it is firmly on track to deliver expectations of full year adjusted pretax profit of GBP345 million. Last year, it posted a figure of GBP143.9 million.
Looking further ahead, Vistry said it expects to generate revenue of at least GBP1 billion in 2022. Over the medium-term, the figure is expected to grow to GBP1.6 billion. Revenue in 2020 was GBP1.81 billion.
FTSE 250-listed Vistry shares were trading 1.6% lower in London on Tuesday at 1,129.00 pence each.
By Evelina Grecenko; [email protected]
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