Vistry Group PLC (LSE:VTY) shares rose in early trading after the UK housebuilder forecast annual profit in 2023 would be above current market expectations.
The FTSE 250-listed firm expects to deliver adjusted profit before tax for the financial year 2023 in excess of £440mln, well above the market consensus for around £403mln.
The prediction came alongside full-year results for the ended 31 December 2022 which saw a 7.9% increase in revenue to £11.95bn from £11.08bn in the previous year but a fall in statutory pre-tax profit to £247.5mln from £319.5mln in 2021.
Earnings per share fell to 86.5p from 114.6p and the total dividend for the year was cut by 20% to 32p from 40p.
The fall in profit reflected exceptional expenses of £153.9mln, including a £97.0mln fire safety provision and £56.9mln in transaction and integration-related costs following the acquisition of Countryside Partnerships.
Vistry said the integration of Countryside Partnerships was making excellent progress with annualised synergies from the combination now expected to be around £60m ahead of the £50m previously announced with a further £25mln expected in financial year 2023.
Looking ahead the company said it had seen an improving trend in private sales in the first eleven weeks of the year, with average private sales rate per site per week for the year to date at 0.54, increasing to 0.62 in the last four weeks.
“We have seen increased consumer confidence from quarter four 2022, particularly as mortgage rates have trended downwards and availability has improved,” Vistry said.
Shares in Vistry rose 3.4% to 756.50p in London on Wednesday morning.