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Housebuilder Vistry Group (LSE:VTY) revealed plans for an additional £130 million share repurchase on Thursday, following a notable increase in its first-half pre-tax profit. For the six months ending June 30, Vistry's adjusted pre-tax profit rose to £186.2 million, up from £174 million in the same period last year. This growth came alongside a 9.1% increase in total home completions, reaching 7,792 units. The company also reported an 11.1% rise in revenue, reaching £1.97 billion.
Vistry highlighted a robust performance during the summer, which has positioned it well for continued success in the financial year 2024. The company is on track to surpass 18,000 total completions, compared to 16,118 in the previous year, and anticipates that full-year profits will exceed those of the prior year. This optimistic outlook is supported by a strong forward sales position of £5.1 billion, marking a 19% increase from the previous year, with the group already 91% forward sold for the financial year 2024.
Greg Fitzgerald, the Chief Executive Officer, commented on the company's performance, noting that Vistry's Partnerships model has significantly outperformed the traditional housebuilding market. He emphasized that Vistry's growth strategy and increased focus on affordable housing align well with the new government's objectives to tackle the housing crisis, positioning Vistry as a key player in meeting the government’s housing targets.
Fitzgerald expressed confidence in achieving the company's medium-term goals, which include a 40% return on capital employed and £800 million in adjusted operating profit. Additionally, since the strategic update a year ago, Vistry has announced or returned £285 million of its targeted £1 billion capital return to shareholders over three years.
Overall, Vistry's performance reflects a strong commitment to growth and shareholder value, with its continued focus on expanding affordable housing and strategic capital returns bolstering its position in the market.
