Vistry Group PLC (LSE:VTY) said in a trading update today that group financial performance for fiscal 2023 is ahead of guidance.
The housebuilder said adjusted profit before tax is expected to be in line with the prior year, in which it generated £418.4 million of pre-tax profit.
This is ahead of the guidance it gave in October, in which it estimated group adjusted profit before tax for the year of £410 million.
"The group had a strong run into the year end and I'm pleased to report that adjusted profit before tax for FY23 is anticipated to be ahead of guidance,” said Vistry chief executive officer Greg Fitzgerald.
“Looking ahead, working with our highly valued partners we are committed to increasing the delivery of much needed homes across the country, and in the fourth quarter have continued to secure exciting new developments that reflect our high return, asset-light partnerships model.”
He said the company has forward sales totalling £4.5 billion, up 12.4% on the prior year, which positions it well to deliver a step-up in total completions this year.
Vistry said it completed 16,124 builds in 2023, down from 17,038 in 2022, with a higher number stemming from joint ventures than the year before.
The company said the former Partnerships business “demonstrated a very resilient performance considering the challenging market conditions faced by the broader housebuilding sector”.
It said it generated adjusted revenue of £4 billion in 2023, down from £4.46 billion in 2022, with a slightly lower average selling price than the prior year.
Vistry said it recorded 0.96 sales per week per site, up from 0.71 in 2022, with a higher rate of sales in its Partnerships business than in traditional housebuilding.
It kicked off a £55 million share buyback in December, and has a stated target to deliver £1 billion of shareholder distributions over the next three years.
Vistry said it is well positioned to take market share in the construction of affordable homes, noting that the easing of mortgage rates will "help stimulate demand" this year.
The company’s board also said today that Ralph Findlay will step down as chair at the company’s annual general meeting on 16 May, and will be succeeded by the company’s group CEO Greg Fitzgerald.
Non-executive directors Jeff Ubben and Chris Browne are also stepping down, while Usman Nabi, the chief investment officer of Browning West, has been appointed as a new non-executive director at the company.
Vistry said it will seek to hire a senior independent director to provide oversight on governance, and two additional non-executive directors, and update the market in due course.
It is due to unveil its results for the year that ended on 31 December on 14 March.