TIDMVTY
RNS Number : 7543Y
Vistry Group PLC
17 May 2021
17 May 2021
Vistry Group PLC
Trading Update for the period covering 1 January 2021 to
date
Vistry Group PLC (the "Group") is today providing an update on
trading in the period from 1 January 2021 to date ahead of its
Annual General Meeting ("AGM") which is being held at 12:00 noon
today.
-- Very positive start to the year with strong demand across all
areas of the business and an average weekly private sales rate of
0.75, up 21% on 2019 (2020: 0.44, 2019: 0.62)
-- Housebuilding on track to deliver a significant step-up in
completions in FY21 to c. 6,500 units (FY 20: 4,652), ahead of our
previous expectations, and an improvement in gross margin
-- Vistry Partnerships continues its excellent progress towards
FY22 targets of GBP1 billion revenue and a 10% plus operating
margin
-- Group month-end average net debt for 2021 to be less than
GBP150m, below our previous target of less than GBP200m
-- Group forward sales position further strengthened to GBP2.7
billion, with 83% of forecast FY21 total Housebuilding units and
Partnership margin mixed tenure units secured
-- Delivering high quality homes remains a top priority and we
are pleased to maintain our 5-star HBF Customer satisfaction rating
with the Group delivering ahead of the 2020 level
-- The Group has previously guided to adjusted profit before
tax((1) for FY21 of at least GBP310m. Reflecting the strong trading
in H1 and increased expectations for FY21 Housebuilding
completions, the Group now expects adjusted profit before tax for
FY21 to be c. GBP325m, whilst maintaining its expectations for
FY22
Strong demand
We have seen consistently strong demand across all areas of the
business in the year to date, with our private sales rate per site
per week at 0.75 (2020: 0.44, 2019: 0.62). This is an increase of
70% on the equivalent rate for 2020 and 21% increase on the 2019
pro forma. During the period we have transitioned to the new Help
to Buy scheme designed for first time buyers only and are seeing
good demand for this new product.
The Group's forward sales position has further strengthened to
GBP2.7 billion. Housebuilding forward sales total GBP1,490m and
Partnerships' mixed tenure forward sales total GBP448m, with 83% of
forecast FY21 total Housebuilding units and Partnership mixed
tenure units secured. Partner Delivery forward order book totals
GBP808m with 92% of forecast FY21 Partner Delivery revenue
secured.
Operations
Delivering high quality homes remains a key priority across the
Group as we forecast a significant step up in completions for 2021.
Our sites are operating well with build rates at pre-pandemic
levels or above, and the Group's HBF Customer Satisfaction score
maintained at 5-star, with both Housebuilding and Partnerships
delivering at this level.
Aligned with the strong demand in the market we have seen some
improvement in pricing across all our business units. We are also
seeing modest levels of build cost inflation across both our labour
and material supplies, with the agreements entered into on the
formation of Vistry Group providing some protection in respect of
our material procurement. Our focus on strong supply chain
relationships and well-controlled procurement is benefitting us
during a period of high demand.
High quality land acquisition
We continue to see a good supply of high-quality land
opportunities that at least meet our minimum hurdle rates, and in
particular larger sites, where there is a lower level of
competition. The Group is well positioned to maximise this
opportunity with the value we can achieve from larger sites now
enhanced by our ability to deploy the differing development
approaches of both Housebuilding and Partnerships, as well as
offering dual brands. Strategic land remains a key source and our
strategic land team has made good progress in the year to date,
securing options over 1,350 plots across 3 developments and has a
strong pipeline.
Housebuilding has secured 3,230 plots across 13 developments
totalling GBP145m in the year to date and has excellent visibility
on land, with 94% of land required for forecast FY22 completions
now secured. Partnerships has stepped up its land acquisition to
support its strong growth in mixed tenure completions. In the year
to date, Partnerships has secured 1,177 plots on 5 sites for mixed
tenure development, and now has 98% of land required for forecast
FY22 mixed-tenure completions secured.
Balance sheet and liquidity
The positive performance in the year to date is mirrored in an
improved cash position. We now expect Group month-end average net
debt for 2021 to be less than GBP150m, below our previous target of
less than GBP200m. We expect to deliver a much stronger year on
year net cash position as at 31 December 2021 (31 December 2020:
GBP38.0m net cash).
Sustainability
Having launched our new sustainability strategy earlier this
year we are making good progress. Our work is well under way in
determining our Science-Based Targets and route to Net Zero and we
will provide the details of this with our half year results in
September.
Dividends
As previously announced, the Group is pleased to resume the
payment of dividends and intends to pay a 2020 final ordinary
dividend of 20 pence per share on 21 May 2021, subject to
shareholder approval at today's AGM. Looking forwards, the Group is
targeting to maintain a strong balance sheet while operating with a
progressive dividend policy which allows the Group to move towards
a 1.75x dividend cover over time.
Outlook
The Group continues to see strong demand across all areas of the
business. Our sites are operating well, and we are seeing the
strategic benefits of the enlarged Group coming through. We
anticipate that our half year performance will be significantly
ahead of our previous expectations in terms of profit and cash.
For the full year, Housebuilding is on track to deliver a
significant step-up in completions to c. 6,500 units, ahead of
previous guidance, and an improvement in adjusted gross margin to
c. 22%. Partnerships expects to deliver significant growth in
higher margin mixed tenure completions in FY21 and is on track to
meet its FY22 targets of GBP1bn revenue and an adjusted operating
margin of 10% plus.
The Group has previously guided to adjusted profit before tax(1)
for FY21 of at least GBP310m. Reflecting the strong trading in H1
and increased expectations for FY21 Housebuilding completions, the
Group now expects adjusted profit before tax for FY21 to be c.
GBP325m, whilst maintaining its expectations for FY22.
Greg Fitzgerald, Chief Executive commented:
"It has been a very positive start to the year with strong
demand across all areas of our business and our private sales rate
increasing to 0.75. As we approach the end of our first half, we
anticipate results for the six months will be well ahead of our
previous expectations.
Vistry Housebuilding is firmly on track to deliver a significant
step up in completions in FY21 and remains firmly focused on
driving profitability to deliver the expected improvement in gross
margin.
Vistry Partnerships holds an exciting and unique market position
and has a clear growth strategy. The business is making excellent
progress towards its targets of increasing revenues from GBP728m
last year to GBP1bn in FY22 accompanied by operating margin
improvement to at least 10%.
Delivering high quality homes and excellent customer service
remains a top priority for the Group. We are pleased to have
maintained our 5-star HBF Customer satisfaction rating and continue
to make progress, with the Group now achieving scores ahead of 2020
levels."
Greg Fitzgerald, Graham Prothero and Earl Sibley will host a
call for analysts today at 8:00am.
To join the call please dial: +44 (0)330 336 9126, Confirmation
code: 4563344
Forward sales (GBPm) 1 March 2021 14 May 2021
-------------------------------- ------------- ------------
Housebuilding
* Private 608 715
* Private JVs (100%) 171 214
* Affordable 414 446
* Affordable JVs (100%) 117 115
Total Housebuilding 1,310 1,490
Partnerships
* Mixed tenure 184 198
* Mixed tenure JVs (100%) 254 250
Total mixed tenure 438 448
Total development 1,747 1,938
Total partner delivery 880 808
Total Group 2,627 2,746
-------------------------------- ------------- ------------
Certain statements in this press release are forward looking
statements. Forward looking statements involve evaluating a number
of risks, uncertainties or assumptions that could cause actual
results to differ materially from those expressed or implied by
those statements. Forward looking statements regarding past trends,
results or activities should not be taken as representation that
such trends, results, or activities will continue in the future.
Undue reliance should not be placed on forward looking
statements.
For further information please contact:
Vistry Group PLC 01675 437160
Earl Sibley, Chief Financial Officer 020 7250 1446
Susie Bell, Head of Investor Relations vistry@powerscourt-group.com
Powerscourt
Justin Griffiths, Nick Dibden, Victoria
Heslop
[1] Pre-exceptional items and amortisation of acquired
intangible assets
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTAFMRTMTMBBAB
(END) Dow Jones Newswires
May 17, 2021 02:00 ET (06:00 GMT)
Bovis Homes (LSE:BVS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bovis Homes (LSE:BVS)
Historical Stock Chart
From Jul 2023 to Jul 2024
