Vistry said it is confident it can deliver profit growth in FY25 in a trading statement released on Thursday, pointing to strong demand from its partner model despite challenging market conditions.
The group said demand from Registered Providers and Local Authorities has continued to strengthen significantly, and the company expects to conclude several new Partner Funded deals in Q4.
It was surprising to see shares dip in early trade, but the weakness was bought into, and Vistry turned positive as the session progressed.
Vistry’s overall sales rate since July 1st has jumped 11% compared to the same period last year, reaching 0.81, up from 2024’s 0.73.
Perhaps investors were put off by the falling order book, which fell to £4.3 billion from £4.8 billion in 2024.
“Vistry’s showing signs of returning to life after a dismal period of operational slip-ups and profit guidance downgrades, as the group saw its sales rates climb 11% higher so far in the second half,” explained Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“Importantly, the UK government’s £39 billion pledge to increase the amount of affordable housing is having the desired effect. The money is starting to flow, and that’s seen partner-funded activity pick back up, with several new deals expected to be confirmed in the final quarter. As these houses are built, that will convert into revenue and should help the top line return to growth territory.”
“House prices are on the rise, demand is outstripping supply, and build-cost inflation remains at manageable low single-digit levels, with the latter being helped by Vistry’s huge scale, allowing it to negotiate harder on building materials.”
Vistry said build cost inflation remains controlled at low single digits, with material pricing having stabilised, while labor cost pressures are being managed through improved work visibility and continuity.