Vistry Group PLC (LSE:VTY)’s interim results on Thursday, September 5 come as fortunes finally look to be improving for housebuilders.
Following an interest rate cut in early August and a coinciding drop in mortgage rates, the housing market appears to be on the road to recovery, with data more recently showing mortgage approvals and credit up in July.
Vistry’s sales figures and outlook are set to be the key focus of the results therefore, according to UBS analysts, given completions data for the period has already been unveiled.
This showed the firm built 7,750 houses over the first half of the year, marking an 8% increase on early 2023.
UBS noted the figures should have driven sales to £2 billion over the first half of the year, prompting a pre-tax profit of £186 million.
Vistry’s guidance for the year is to complete over 18,000 homes and meet market expectations for pre-tax profit of £434 million.
Hargreaves Lansdown analyst Aarin Chiekrie added lower building costs should support the company ahead, which he noted had also planned to return £1 billion to shareholders over the next three years.
“Last investors heard, the group was sporting a net debt position, so markets are keen to hear more on its plans to boost balance sheet health,” he said.