The firm is also forecasting that it will build 1 in 6 of the UK’s new affordable homes this year.
Announcing a strong set of first-half results this morning, upbeat chairman and chief executive Greg Fitzgerald said: “Vistry’s Partnerships model is significantly outperforming the traditional house building 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.
“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% 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.”
In the first six months, completions rose 9% to 7,792 homes driving a corresponding lift in revenue to £1.7bn and pre-tax profit ahead 37% at £157m.
Around £600m of revenue came from open market sales and £1.1bn from partner funded sales. Adjusted operating margin at the business remained stable at 11.5%.
Fitzgerald said: “The group’s strong forward sales position totalling £5.1bn is up 19% on the prior year, with the group 91% forward sold for the full financial year in 2024.”
He added that Vistry continues to target a year end net cash position.
