Vistry sees FY profits in line with expectations

The company, formerly known as Bovis Homes, forecast profits of around £345m, up from £143.9m a year ago, as it recorded 6,551 completions during the year, with gross margins expected to be more than 22%, up from 17.6% from last year.

Average selling prices were roughly stable at £304,000, from £303,000 in 2020. Total house building division and partnership mixed tenure forward sales at the end of the year were up 24% on year at £1.94bn and around 54% of its expected sites in 2022 had already been sold.

“We have continued to see some pressure across the supply chain resulting in extended lead times on building materials and inflationary price increases on certain products and skilled labour,” Vistry said on Wednesday.

“There was some easing towards the end of the year and, working in close partnership with our material suppliers, we continue to actively manage this challenge and are well positioned at the start of the new financial year.”

Vistry also said it was “supportive” of UK government plans to force developers to pay £4bn to fix flammable cladding issues on remediate tower blocks between 11m - 18m in height in the wake of the 2017 Grenfell Tower fire that killed 72 people.

“We fully agree that the costs of remediation should not be borne by leaseholders and we will work directly with the government as well as with the Home Builders Federation to deliver a solution," the company said.

“We will update on any implications for the group as these suggestions evolve into clear proposals."