British housebuilder Vistry has reported a rise in revenue and said it is on track to build close to 20,000 homes this year, bucking the trend in a struggling industry.
Revenue rose by 11 per cent to £1.97m in the half-year ended 30 June 2024, while operating profit rose 10 per cent to £227.3m.
Profit before tax rose by seven per cent to reach £186.2m, up from £174m in the first half of 2023.
The FTSE-250 firm said it is on track to build more than 18,000 homes in the full year.
The total number of completions rose nine per cent in the first half to 7,792 units, up from 7,143 units last year.
Chief executive Greg Fitzgerald said: “The group has delivered a strong half year performance with Vistry’s Partnerships model significantly outperforming the traditional housebuilding market.
“The group’s growth strategy and greater delivery of affordable housing is well aligned to the new government’s ambitions to address the country’s housing crisis, and uniquely positions Vistry to play a key role in delivering the government’s new housing targets.”
He added: “We have traded well over the summer months, and with positive momentum across the business are on track to deliver more than 18,000 completions in FY24, and a year-on-year increase in profits.
“We remain confident on delivering our medium-term targets of a 40 per cent return on capital employed and £800m of adjusted operating profit. In addition, since the strategy update 12 months ago, I’m pleased that the group has now announced or returned £285m of the targeted £1bn capital return to shareholders over three years.”
Vistry is ‘uniquely positioned’ to play key role in housing
The company said it was encouraged by the direction of government housing policy.
Chancellor Rachel Reeves has pledged to build 1.5m homes in the next five years, along with an overhaul of the planning regime.
“Vistry’s unrivalled capability and track record in partnerships housing delivery, uniquely positions us to play a key role in delivering the Government’s targets,” the company said.
The company has the “existing capacity, capability and momentum to deliver strong growth in mixed tenure housing in the near term,” it added.
Last October, the firm said it would focus solely on building affordable homes via its Partnerships business. This partners with local authorities and other social housing providers after a volatile housing market eroded demand for buildings in the private sector.