(Alliance News) - Vistry Group PLC on Tuesday said it is supportive of new UK government plans to introduce mandatory housing targets as it anticipates a continued increase in completions.

The Kings Hill, Kent-based housebuilder said adjusted operating profit is expected to climb 10% to GBP227 million in the first half of 2024 from GBP206.7 million a year before, with adjusted pretax profit up 6.9% to GBP186 million from GBP174.0 million.

Total completions are up 8.5% annually to 7,750 units from 7,143 units, Vistry said.

Looking ahead, Vistry said it is well positioned to deliver more than 18,000 completions in 2024, up 12% from 16,118 in 2023, as well as full year profit ahead of the year earlier.

Vistry added it expects to achieve a 40% return on capital employed and GBP800 million in adjusted operating profit in the medium term. This compares to 21% ROCE in 2023 with an adjusted operating profit of GBP487.9 million.

"The group has delivered a strong performance in the first half which underpins the board's confidence in its expectations for the full year," said Chief Executive Greg Fitzgerald.

"We look forward to working with the new government to address the country's housing crisis and are extremely well placed to support its ambition of delivering the biggest boost to affordable housing in a generation."

Rachel Reeves, the new chancellor of the Exchequer following the Labour party's election victory last week, on Monday confirmed the UK national planning policy framework will be reformed, restoring mandatory housebuilding targets for local authorities as part of the drive to build 1.5 million homes over five years.

Vistry said it is committed to returning GBP1 billion of capital to shareholders within three years via ordinary and special distributions. Its GBP100 million share buyback programme it had started in April is ongoing, with so far GBP51 million in shares bought back as at the end of June.

Vistry will release its half-year results on September 5.

Vistry shares were down 0.4% at 1,287.00 pence each on Tuesday morning in London.

By Tom Budszus, Alliance News slot editor

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