Vistry chief Greg Fitzgerald has succeeded in forcing through price cuts on subcontractor packages.

The firm started negotiations with subcontractors in October for 10% price discounts on contracts from January and all new work going forward.

This morning in an upbeat trading statement on last year’s performance, Fitzgerald revealed key supply chain partners had now agreed to cost reductions.

He said the success of talks reflected both improving market conditions on costs and the benefits to the group from its scale.

He said Vistry’s growth strategy, and the high level of visibility on forward sales and build programmes under the Partnerships model had helped talks allowing Vistry to offer greater continuity of work for suppliers.

Fitzgerald, who will take on the combined role of chairman and chief executive at the group when the present chairman Ralph Findlay steps down in May, said Vistry would exceed profit expectation for 2023.

Adjusted pre-tax profit is now expected to be in line with £418m recorded in the prior year.

Fitgerald said that following a period of reorganisation, Vistry had started the year operating as one business, fully focused on a Partnerships housing model.

“We are making good progress with our strategy of focusing our operations fully on our high growth, asset-light Partnerships model.

“The group is operating as one Partnerships business with six operating divisions and 26 regional businesses.”

Total completions were down only 5.4% to 16,124 units, significantly outperforming house building rivals.

Looking forward Fitzgerald said Vistry enjoyed a strong forward sales position up 12.4% on prior year at £4.5bn (2022: £4.0bn), positioning it to deliver a step-up in total completions in 2024.

“We are seeing good levels of demand for homes from registered providers and local authorities, with an increasing demand profile from the private rental sector.”

The timber frame operation, Vistry Works, made good progress in the year delivering 2,500 timber frame units as planned.  This output is expected to double this year from its three factories.