(Alliance News) - Vistry Group PLC on Monday raised profit guidance for 2021 after a strong start to the year.
The housebuilder reported a "very positive start" to 2021 with strong demand across all areas of the business and an average weekly private sales rate of 0.75, marking an increase of 70% on 2020 and 21% on 2019.
The forward sales position has further strengthened to GBP2.7 billion, Vistry said, with 83% of forecast total Housebuilding units and Partnership margin mixed tenure units for 2021 secured.
For the full year, Vistry said housebuilding is on track to deliver a significant step-up in completions to 6,500 units from 4,652 in 2020, and ahead of previous guidance.
Vistry said its Partnerships unit expects to deliver significant growth in higher-margin mixed-tenure completions in 2021 and is on track to meet its 2022 targets of GBP1 billion in revenue and an adjusted operating margin of 10%.
"The group continues to see strong demand across all areas of the business. Our sites are operating well, and we are seeing the strategic benefits of the enlarged group coming through. We anticipate that our half-year performance will be significantly ahead of our previous expectations in terms of profit and cash," the company said.
Vistry completed its purchase of the Linden Homes and Partnerships & Regeneration businesses of Galliford Try Holdings PLC at the start of 2020, renaming itself following deal from Bovis Homes.
Vistry said on Monday that, due to strong trading in the first half and increased expectations for 2021 house completions, it now expects adjusted pretax profit for 2021 to be GBP325 million, whilst maintaining its expectations for 2022. Vistry had previously guided to adjusted pretax profit of at least GBP310 million for 2021.
Shares in Vistry were up 2.3% at 1,325.37 pence in London early Monday.
By Lucy Heming; lucyheming@alliancenews.com
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Galliford Try (GFRD)
Vistry Grp (VTY)