Vistry Group PLC (LSE:VTY) said it expects net debt to be higher than anticipated, due to slower sales, as it warned it had not seen a seasonal upturn in business that it had expected.
Reflecting the timing of completions, average net debt for the full year is forecast to be higher than previously estimated at around £450 million, the firm said.
But it continues to expect net debt to reduce to c. £100 million as at 31 December 2023.
The housebuilder forecast adjusted pre-tax profit of £410 million for financial year 2023, including a £40 million reduction in full-year site margins, reflecting the impact of transitioning the Housebuilding business to Partnerships.
Vistry said the slowdown in open market private sales seen during the summer months has continued and it has seen the seasonal increase in private sales since September that it had forecast.
The group's average weekly sales rate since 1 July has been 0.60, down from 0.64 the year before, and 0.76 for the year to date compared to 0.77 before.
Cost savings from the integration of Partnerships and Housebuilding are expected to deliver around £25 million of annualised cost savings with around 200 jobs to go.
Vistry also said it remains confident that provision made for cladding remedial work is sufficient.