Vistry reiterates forecasts after strong start to the year

Housebuilder Vistry Group reiterated full-year profit guidance on Thursday after its interim performance exceeded internal expectations.

Adjusted revenues in the six months to 30 June rose nearly 6% to £1.33bn, while total completions improved 5% to 5,409. Adjusted operating profits were ahead 13% at £198.2m.

Reported pre-tax profits fell 29% to £111.3m, after the exceptional costs of £71.4m related to legacy cladding and fire safety.

Rising energy prices meant total costs were ahead 6% on average, but the FTSE 250 firm - which earlier this week announced a £1.25bn deal to buy struggling rival Countryside Properties - said selling prices have so far offset the increase. Cost inflation in the second half is currently around 8%, Vistry added.

Greg Fitzgerald, chief executive, said: "The group has delivered an excellent performance in the first half, significantly exceeding our expectations at the start of the year.

"We have made a solid start to the second half and are well positioned for the full year.

"While mindful of the impact of wider economic uncertainties, including rising energy costs, we continue to expect to see a significant step up in profitability."

Vistry, formerly known as Bovis Homes, expects full-year pre-tax profits to come in around £417m.

Countryside Properties, which earlier this year issued an unexpected profit warning, agreed the cash and share offer from Vistry on Monday. Vistry said the combination would create one of the country’s leading housebuilders with capability across all housing tenures.

The deal is set to complete early next year, after which Fitzgerald will become chief executive of the combined group.