Yahoo Finance U.K. Homebuilder Vistry Shares Rise After Upbeat Outlook Update
By Scott Kanowsky
Investing.com -- Shares in Vistry Group PLC (LON:VTYV) rose on Friday after the U.K. housebuilder said it expects its full-year profit margin to beat estimates and annual earnings to come in at the top end of forecasts.
In a trading update, the company predicted its annual adjusted gross margin will be ahead of its target of 23%, thanks in part to solid demand across the business. Vistry added that price increases of as much as 8% for private units more than offset rising costs in the first half.
Vistry also reiterated its full-year guidance, saying it sees adjusted pre-tax profit at the upper end of market forecasts. A Bloomberg prediction, cited by the firm, expects earnings as high as £417.0 million, with the mean estimate at £397.7 million.
"Whilst we are mindful of the wider economic uncertainties, we remain positive on our outlook," Vistry said.
U.K. homebuilders have seen demand hold steady recently. But concerns remain that surging inflation will push up construction costs and potentially induce a slowdown in the broader economy that could weigh on house prices.
Vistry warned that build expenses are seen jumping by around 6% during its fiscal year, with material prices, in particular, being driven higher by increasing wages and energy costs.
The FTSE 250 group said it is in a good position to "effectively manage" these pressures, but flagged that planning is still "the single most significant" constraint on the business.
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U.K. Homebuilder Vistry Shares Rise After Upbeat Outlook Update
