Vistry reiterates guidance despite drop in house sales

(Sharecast News) - Housebuilder Vistry Group reiterated full-year guidance on Wednesday, despite Budget uncertainty weighing on private house sales in the second half. Updating on trading in the year to December end, Vistry confirmed adjusted pre-tax profits were on track to come in around £270m, up from last year's £263.5m and in line with expectations.

Revenues, however, were broadly unchanged at £4.2bn, after the total average selling price rose 3% to £282,000 but completions fell 9% to 15,700.

Vistry builds and sells both private homes and affordable housing, through its partnership business. Partner-funded units fell 8%, to around 11,600, while open market units decreased 11% to 4,100.

The overall sales rate averaged 0.96 sales per week, down from last year's 1.07.

Vistry said the slowdown in sales reflected "uncertainty driven by the Budget, causing a more subdued market in the third quarter and the first half of the fourth quarter".

Funding uncertainty in the first half also weighed on the affordable housing unit in the first half.

However, Vistry also flagged "strong" operating margin progression during the second half, boosted by new, higher-margin developments and increased operating leverage.

Greg Fitzgerald, chief executive, said: "I am pleased that we delivered on our full-year guidance, with a particularly strong second-half performance despite continued challenges in the open market and the uncertainty related to the Budget.

"Strong margins enabled us to mitigate top line headwinds and reflect the focus on driving improved site mix and cost management over the last 12 months."

Looking to the current year, Vistry said the forward sales position stood at £4bn as at 31 December, down modestly on 2024's £4.4bn.

However, Fitzgerald said: "While market conditions remain uncertain in the near term, further benefits of our cost, productivity and mix enhancement initiatives will support the delivery of good year-on-year financial and strategic progress."

As at 0830 GMT, shares in the FTSE 250 firm had shed 3% at 664.6p.