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15 Jan 2020 | 07:47

Vistry forecasts 'slight' profit beat on higher home completions, prices

Vistry, the house builder formally known as Bovis Homes, said it expected to deliver record annual profits slightly ahead of market consensus.

The company noted that the Bloomberg consensus pre-exceptional, pre-tax forecast for its profit was £181.6m, as at 14 January.

Home completions rose 3% to 3,867, with an average selling price of around £279.0k, up from £273.2k on-year.

Vistry said that, as previously reported, market uncertainty surrounding Brexit and national elections led to some increased pressure on pricing in the second half, resulting in a roughly 1-2% reduction in underlying sales prices.

'This was, in part, offset by a combination of the group's own build cost savings and a lack of cost inflation,' it added.

The company said it expected to report exceptional costs relating to the acquisition of Linden Homes and Vistry Partnerships of about £15m.

It achieved an average sales rate per outlet per week of 0.58, up from 0.50 on-year.

'Whilst it is early in the year to comment on 2020 trading, we have a strong forward sales position and trading to date has been very positive, with consumer confidence returning and industry fundamentals remaining strong,' Vistry said.

'We are excited about the prospects for the enlarged business and expect to report much progress in the year ahead.'

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