Vistry Group PLC (LON:VTY) said all areas of the housing market are strong with interim results to the end of June, 2021 well ahead of expectations as higher prices offset cost inflation.
Average weekly private sales increased to 0.76, up 10% on the pre-pandemic pro forma 2019 rate of 0.69, the builder added, which includes sustained demand for homes scheduled to complete in the fourth quarter or after the end of the 'stamp duty holiday'.
“With this strong demand, prices have increased across all geographies that we operate within," it said, noting “house price inflation is more than offsetting any cost pressure.”
Greg Fitzgerald, chief executive, added: "The group has had a very strong first half with a step up in completions, price increases, improved profitability and strong cash generation, all ahead of our expectations at the start of the year.
“There is some pressure across the material supply chain in terms of price increases and extended lead times, but we are working well with our partners to ensure successful delivery of our build programme and expect this position to ease through the second half.”
The forward sales book is £2.7bn with around 93% of sales this year already secured, which is a much higher percentage than in previous years, he added.
First half completions totalled 3,126 (H1 20: 1,235) units with around 6,500 (FY20: 4,652) the target over the full year at an adjusted gross margin of 22% (FY20: 17.6%)
Net cash at 30 June was £32mln compared to net debt of £357mln a year ago.