Vistry is on track to make a 10% increase in profits this year after asking subcontractors for a 10% discount on prices.
The house building giant asked its supply chain for cost reductions last October .
In a trading update today on the first six months of 2024 Vistry said adjusted operating profit is expected to be up 10% on prior to £227m from £206.7m last time.
Total housing completions during the first half of this year were also up 7% to 7,750 homes.
The update said: “The Group has benefitted from lower year on year building material costs in the first half reflecting our ongoing engagement with our supply chain.
“The high level of visibility on forward sales and build programme within our Partnerships model enables us to work closely with our subcontractors to secure beneficial terms. These cost benefits are expected to continue into the second half.”
Greg Fitzgerald, Chief Executive said: “The Group has delivered a strong performance in the first half which underpins the Board’s confidence in its expectations for the full year.
“Our Partnerships model is significantly outperforming the broader housebuilding market and we are confident we will deliver over 18,000 completions for the full year and make progress towards our medium term targets.
“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.”
