Housebuilder Vistry exceeds expectations after bidding on Countryside
Vistry, one of the biggest housebuilders in the UK, has bagged £1.64bn in forward sales so far this year, as it seeks to ride out the current economic storm as a construction powerhouse with Countryside Partnerships.
House completions rose five per cent to 5,409 in the six months to 30 June. Meanwhile, revenue inched three per cent higher to £1.16bn.
However, spiralling inflation has weighed heavily on the constructions industry, hitting raw materials, labour and fuel.
The FTSE-listed housebuilder’s operating profit plunged more than a third in the six-month period, from £139.1m last year to £89.3m in 2022.
In a statement today, chief executive Greg Fitzgerald said the group had been “significantly exceeding our expectations at the start of the year.”
Earlier this week, Vistry offered £1.25bn to merge with troubled rival Countryside. Countryside had been scouting for buyers since mid-June, according to a regulatory filing at the time.
Director of investment research group Edison, Andy Murphy, noted that Vistry “made a comment that it might be less active in the land market in future”, echoing what competitor Barratt Homes cautioned yesterday.
Murphy added that the deal with Countryside “would create a leading house builder and the largest partnerships business in the country.”
The deal is expected to be completed by early next year.