Vistry beats first half profit expectations

Adjusted pre-tax profit rose by 14% to £190m in the first six months of this year. Although after taking account of already announced additional fire safety provisions of £71m, statutory pre-tax profit fell to £111m from £156m a year ago.

First half revenue was stable at £1.3bn with completions up 5% to 5,409.

Chief executive Greg Fitzgerald said: “The group has delivered an excellent performance in the first half, significantly exceeding our expectations at the start of the year. 

“Operationally we are in great shape, and with our leading capability across all housing tenures, are very well positioned to maximise the broader market opportunity in the coming period.”

The strength of the first half performance saw group month-end average debt fall to £73m from £239m.

But he warned that total costs, which rose across the board by 6% in the first half were now running 8% due to energy inflation.

Despite this strengthening headwind, Fitzgerald said Vistry expected to deliver a significant improvement in year on year profitability in both our house building and partnerships in FY 22, ahead of our expectations at the start of the year

“We have made a solid start to the second half and are well positioned for the full year with our house building and partnerships mixed tenure forward sales position up 10% on prior year and 96% of our forecast completions for the year secured.  

“While mindful of the impact of wider economic uncertainties including rising energy costs, we remain positive on our outlook and continue to expect adjusted profit before tax for FY 22 to be around £417m,” he said.

Earlier this week, Vistry announced plans to buy partnership housing rival Countryside in a cash and share deal worth £1.25bn.

The deal will create one of the country’s leading home builders with revenue of over £3bn.

The combined business will comprise a top tier house builder and a leading partnerships business, with capability across all housing tenures, and delivering much-needed affordable housing.

Vistry is forecasting that future operating profit from each division could top £400m, making in excess of £800m in total.

Leave a comment