"in the fourth quarter [we] have continued to secure exciting new developments that reflect our high return, asset-light partnerships model"
- Greg Fitzgerald - Vistry
Ahead of its full results scheduled for March 14, Vistry has announced that it expected its adjusted pre-tax profit to be “in-line” with the prior year’s £418.4 million. This is up on guidance of £410 million within its last trading update of October 23.
Total completions fell 5.4% against 2022 to 16,124 units. Vistry pointed out that this was “significantly” better than its peers and reflected the resilience of its Partnerships model.
In September, it announced that it would focus solely on its Partnerships business, merging its Housebuilding division with its Partnerships arm before the end of its financial year.
The firm said the transition of its former Housebuilding division’s landbank to its Partnerships model was “making good progress” as were its new partnerships and pre-sale agreements.
It is aiming for around 65% of group completions to be pre-sold. While its Partnerships division saw completions rise 3.3% to 9,422 units in 2023, completions in the former Housebuilding business fell to 6,702 units from 2022’s 7,920.
The group’s sales rate for the year averaged 0.96 sales per week per site against 2022’s 0.71. Its forward sales position improved 12.4% against 2022 to £4.5 billion.
At the same time, its adjusted revenue fell from 2022’s £4.46 billion to £4 billion. Vistry’s total average selling price dropped to around £277,000 from the previous year’s £289,000.
Vistry also said it had agreed cost reductions with its key supply chain partners for all existing and future contracts.
Greg Fitzgerald said: “The group had a strong run into the year-end. Looking ahead, working with our highly valued partners we are committed to increasing the delivery of much-needed homes across the country, and in the fourth quarter have continued to secure exciting new developments that reflect our high return, asset-light partnerships model.”
