March 22 (Reuters) – British homebuilder Vistry ( VTYV.L ) said on Wednesday that conditions were improving in the sector, as it forecast at least a 5% rise in 2023 earnings, encouraged of the need for more affordable housing.
A jump in mortgage rates and fears of an economic downturn have hit the British housing market, although there has been an increase in buyer confidence recently.
Vistry Group said it saw an improved sales trend in the first 11 weeks of the new fiscal year, with an annual average private sales rate per site per week of 0.54, and the rate increased by 0.62 in the last four weeks.
The sales rate was 0.46 in the fourth quarter of 2022, although it was 0.71 for the full year.
The FTSE midcap (.FTMC) company, which works with local authorities and housing associations to build affordable homes through its Partnerships business, said it expected the group to adjust its profit before taxes for this year up to 440 million pounds ($539 million).
“Financial year 2023 will be a seminal year for Vistry as a slower housing market provides an opportunity for the Partnerships business to stand out,” Peel Hunt analysts said in a note. .
Vistry, which became Britain’s major housebuilder after buying rival Countryside last year, said the merger had boosted Partnerships’ growth and was confident of achieving annual synergy benefits of around £60 million. pounds, up from the previous target of 50 million pounds.
The company posted a nearly 21% jump in adjusted pretax profit to 418.4 million pounds for the year ended Dec. 31, beating analysts’ average estimate of 411.1 million pounds, according to Refinitiv Eikon.
However, Vistry cut its final dividend payment to 32 pence per share from 40 pence a year earlier, reflecting overall challenging conditions in the sector.
($1 = 0.8165 pounds)
Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Subhranshu Sahu and Mark Potter
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