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Builders and building materials

Vistry expected to trim 2023 guidance alongside full-year results

Ahead of Vistry Group PLC (LSE:VTY) reporting full-year results on Wednesday 22 March, investors have enjoyed a better start to the year after a near-50% decline in the shares in 2022.

The housebuilder already provided headline results back in January, with group revenues up 6% to £3.8bn, helped by higher completions and average selling prices.

Careful cost management helped combat build cost inflation of 8-10%, underlying operating profit up 4% to £1bn, pre-exceptional profit before tax of £418mln and a net cash position of £115mln.

As such, big deviation is not expected.

"Key focus will be on the 2023 outlook as well as recent trading trends," said UBS, suspecting there will there is "downside risk" to the guidance back in January of a 23% housing gross margin and around 10% operating margin in Partnerships.

"Recent private sales rates reported by peers have been around 0.60 and we expect Vistry to mirror this, although with a YTD figure around 0.5, in line with industry peers."

Currently, the PBT forecast stands at £414mln.

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