Consumer confidence is returning, says Vistry

Listed housebuilder Vistry, the firm born from the purchase by Bovis of Galliford Try’s Linden Homes and partnerships housing business, said that consumer confidence was returning as it predicted that full-year results will be above market expectations.

The firm said that results for 2019, which will just reflect trading of the Bovis business pre-merger, will show operating profit “slightly ahead” of market expectations of £181.6m, after selling 3,867 homes, up 3% on 2018.

The trading update added that business in 2020 had been encouraging: “While  it is early in the year to comment on 2020 trading, we have a strong forward sales position and trading to date has been very positive, with consumer confidence returning and industry fundamentals remaining strong.”

The firm said it had increased site sales rates in 2019 to 0.58 per site per week, and had improved profit margins despite a backdrop of market uncertainty.

Vistry chief executive Greg Fitzgerald said that 2019 would see the group deliver record profit. He was confident that the firm will be rated a 5-star housebuilder under the Home Builders’ Federation’s customer satisfaction survey.

“We completed the transformational acquisition of the Linden Homes and the renamed Vistry Partnerships at the start of this year,” he said. “Integration is well under way and we are fully focused on delivering the clear and significant benefits from this exciting combination as quickly as possible.”

Vistry’s full-year results will be published on February 27.