(Alliance News) - Vistry Group PLC on Thursday recorded a "strong" performance in the second half of 2020, an improvement from a first half that was hurt by the Covid-19 pandemic.
The Kent-based housebuilding company reported revenue of GBP1.81 billion, up 60% from GBP1.13 billion in 2019.
Vistry cited sustained "strong" demand in the second half of the year, with the private sales rate per outlet per week increasing by 15% in the period to 0.62 compared to 0.54 proforma in the second half of 2019.
Customers continued to reserve homes during the second national lockdown in November and December, and Vistry delivered completions in 2020 at the top end of its revised expectations. A total of 4,652 houses were completed compared to 6,884 pro forma in 2019, including 820 houses compared to 946 pro forma from joint ventures.
Vistry said pro forma completions and revenue are calculated using published data for Linden Homes and Vistry Partnerships. Vistry completed its purchase of the Linden Homes and Partnerships & Regeneration businesses of Galliford Try Holdings PLC at the start of 2020, renaming itself following deal from Bovis Homes.
Pretax profit for 2020 was GBP98.7 million, down 44% from GBP174.8 million in 2019. This was a reflection of developments being temporarily shut down from the end of March and reopening in late April as a result of the Covid-19 pandemic. Vistry also took a number of exceptional items.
On an adjusted basis, pretax profit was GBP143.9 million. This was above Vistry's guidance of GBP140 million provided in January.
Vistry reinstated its dividend payments with a 2020 final dividend of 20 pence per share.
Vistry had declared a 61.5p total dividend for 2019, up 7.9% from 57.0p in 2018. However, it then delayed paying the 41.0p second interim dividend, and then in June decided to issue shares in place of a cash payout, which saved the company GBP60 million.
Shares in Vistry Group were up 3.0% at 938.00p in London on Thursday.
"The group has achieved an enormous amount in 2020, and despite the challenges I am in no doubt we start 2021 as a stronger business. We had a strong second half performance with a sustained step up in demand, firm pricing, and a robust supply chain. Vistry Partnerships made excellent progress against its growth targets of GBP1 billion revenue and a 10% plus operating margin by 2022, delivering a 70% increase in the second half of 2020 mixed tenure completions and adjusted operating margin progression in the year to 6.7%," said Chief Executive Greg Fitzgerald.
Moving to this year, Vistry said 2021 has started well, with "strong" demand across all areas.
"We have seen no impact from the national lockdown or changes to the Help to Buy scheme and the expected end to the Stamp Duty exemption. We have a strong forward sales position, with 64% of forecast units for 2021 already secured. Assuming stable market conditions, the group is confident it will more than double profits in the year, with a pretax profit of at least GBP310 million," said Fitzgerald.
Separately, Vistry said Fitzgerald bought 53,618 shares at GBP9.26 each, worth GBP496,267, on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
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Galliford Try (GFRD)
Vistry Grp (VTY)