Vistry lifts housebuilding target as forward sales surge

(Sharecast News) - Vistry lifted its annual homebuilding target to more than 18,000 driven by a 10% year-on-year rise in forward sales. The target compares with previous guidance of 17,500. Forward sales in the year to May 14 were £5bn and chief executive Greg Fitzgerald said half-year and annual profits expected to be ahead of last year.

Vistry's total sales rate averaged at 0.96 units year-to-date, compared with 0.87 a year ago, and had improved to 1.23 units over the last eight weeks.

"We continue to see attractive partnership opportunities that meet our requirements for a minimum of 50% of units to be partner funded, a 40% return on capital employed and over 12% operating margin," the company said in a trading update on Thursday.

"Working alongside a range of partners, we are pleased to have secured new land and development opportunities totalling 6,037 mixed tenure new homes across 19 developments in the year to date."

Reporting by Frank Prenesti for Sharecast.com