Vistry forecasts record profit despite pricing pressures

Housebuilder Vistry Group, formerly known as Bovis Homes, has said it expects to post record profits for its latest financial year, despite the pricing pressures created by political uncertainty in the second half. Vistry said that its profit for 2019 will be “slightly ahead” of a £182m market consensus. Total completions were up 3% year on year to 3,867 homes, during the year ending 31 December. Prices fell by 1-2% on the back of political uncertainty during the second half. However, this was offset by build cost savings and a lack of cost inflation. Total average selling price on completions in the year was circa £279,000, up on £273,200 in 2018. The private average selling price was around £341,000, increasing from £337,400 in the previous year. Vistry comprises Bovis Homes, Linden Homes and Vistry Partnerships (previously Galliford Try Partnerships). The group rebranded on 3 January, The acquisitions of Linden and other businesses generated exceptional costs of around £15m during the year. Vistry stated that it has a “strong forward sales position” going into 2020; consumer confidence is “returning”; and industry fundamentals remain “strong”. Greg Fitzgerald, chief executive, said: “The group has made further operational progress over the past 12 months and for 2019 expects to deliver another year of record profit. “Building high quality new homes for our customers has been, and remains our priority, and I am confident we will finish the year as an HBF 5-star housebuilder. “We completed the transformational acquisition of the Linden Homes and the renamed Vistry Partnerships at the start of this year; integration is well under way and we are fully focused on delivering the clear and significant benefits from this exciting combination as quickly as possible.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette