Andy Murphy, Director of Content for Industrials at leading investment research and consultancy firm Edison Group, today commented on Vistry Group’s full-year results.

Andy Murphy, Director of Content for Industrials at Edison Group comments: “In spite of FTSE midcap housebuilder Vistry seeing a pre-tax profit slump of 23 per cent, from £319.5 million in 2021 to £247.5 million, when adjusted, the firm reported a 21 per cent profit jump to £418.4 million, matched by a 13 per cent increase in revenue. Additional costs associated with its £1.25 billion acquisition of Countryside in late 2022 were cited for the initial slump in profit, alongside the jump in mortgage rates and fears of an economic downturn which hit the housing market generally, though this may indeed be temporary. A recent uptick in private sales so far in 2023, as well as strong demand in its Partnerships business, has both analysts and CEO Greg Fitzgerald looking positively on the outlook for the rest of the year. The Group expects adjusted profits before tax this year to £440 million, with management expecting an initial £25 million in profit boost as result of the Countryside merger, eventually topping £60 million. The Group built 7.9 per cent more houses in 2022 than 2021, and expects this trend to continue. With a less bolshy housing market expected in 2023, its affordable housing Partnerships business is expected to stand out, at least while the wider market remains cautious as inflation slowly subsides and rates begin to drop. This was clearly reflected in the decision to cut dividend payments to 32 pence, down from 40 pence a year earlier.”