Vistry has announced in its latest trading update that its operating profit for the year 31 December 2023 has exceeded expectations.
The housebuilder said that it is on track to record an adjusted pre-tax profit of £418.4million for 2023, outperforming the £410million it forecasted three months prior and in line with last year’s pre-tax profit despite expecting a £40million hit from the merging of its housebuilding arm into its partnerships business and closing five regional offices.
Vistry also announced that it had successfully negotiated cost reductions with its suppliers, which will apply to all existing and future contracts.
The company said: “This reflects both improving market conditions on costs and the benefits to the group from its scale, its growth strategy, and the high level of visibility on forward sales and build programmes under the Partnerships model which offers greater continuity of work to our suppliers.”
Last year, the housebuilder asked its contractors for a 10% price cut. While the move received a mixed reaction, chief executive Stephen Teagle said that the decision would improve efficiency and result in more work in the future for its contractors.
Today’s trading update also announced a reshuffle of the non-executive team, with Ralph Findlay stepping down as chair after nine years to be replaced by Vistry boss Greg Fitzgerald, Jeff Ubben and Chris Browne stepping down, and Usman Nabi, managing partner and chief investment officer at Vistry shareholder, Browning West, joining the board. The group will also look to recruit two additional board members.
The trading update saw more positives for Vistry, with its forward sales position increasing to £4.5billion, up 12.4% on 2022. Vistry also said that its transition to the partnerships, announced in September last year, is progressing well.
Despite the positives, Vistry saw its adjusted revenue decrease, with the figure standing at £4billion for 2023, down from £4.46billion in 2022. Its average selling price also fell to £277,000 from £289,000 the previous year.
