Vistry, the renowned house builder, has announced impressive financial results, surpassing profit guidance for the year. The company revealed that its adjusted pretax profit for 2023 is projected to be in line with the previous year’s figure of £418.4 million, exceeding initial expectations of £410 million.
Despite the challenging market conditions and a slight decrease in total house completions by 5.4% to 16,124 units, Vistry has outperformed its competitors and demonstrated the resilience of its partnerships model. The company achieved an average of 0.96 sales per week per site, a notable increase from the previous figure of 0.71.
Vistry’s unique approach to partnerships involves collaborating with government entities and housing associations to deliver affordable and mixed-tenure housing solutions. This innovative model has proven successful, providing sustainable growth for the company.
The builder attributes its robust financial performance to proactive cost management, leading to significant reductions in material and labor prices in the latter half of the year. This strategic decision has further enhanced Vistry’s profitability and competitiveness in the market.
Looking ahead, Vistry is optimistic about future prospects as forward sales as of December 31st increased by 12% compared to the previous year, amounting to £4.5 billion. The company has observed strong demand for affordable homes and a notable surge in interest from the private rented sector throughout the fourth quarter and into 2024.
Furthermore, the transition of Vistry’s former house building landbank to their successful partnerships model is progressing smoothly, solidifying their position in the market. Recent developments such as the easing of mortgage rates have also contributed to a positive outlook for the company.
Against this backdrop of success, Vistry announced a leadership transition. Nonexecutive Chair Ralph Findlay will step down after the annual general meeting in May, making way for Chief Executive Officer Greg Fitzgerald to assume the position of Chair. This strategic move ensures continuity and the effective execution of Vistry’s long-term strategy.
In conclusion, Vistry’s remarkable financial performance, robust partnerships model, and effective cost management strategies have positioned the company for continued success in the coming years. With strong demand from various sectors and a capable leadership team, Vistry is well-equipped to navigate the dynamic landscape of the housing market.