Vistry to restart work on 90% of Partnership sites

(Sharecast News) - Vistry, formerly Bovis Homes, said on Thursday that it will restart work on around 90% of its Partnership sites and a significant number of its housing sites next week.
Chief executive Greg Fitzgerald said: "This first step represents a positive move for the group, as well as the wider economy, and the critically important delivery of new homes."

The housebuilder said that since the lockdown began, it has taken 212 gross private reservations, resulting in 132 reservations net of cancellations. It has also exchanged on 170 homes and legally completed a total of 193 private sales.

"Our levels of website traffic and prospects remain strong, an indication of the continued underlying demand," it said.

Vistry has furloughed the majority of its staff during the period of site closures - on full pay until at least the end of May - but expects the level of furloughed employees to fall as activity on sites increases. In addition, in March all of its executive directors, the wider senior leadership team, the chairman and the non-executive directors volunteered a 20% cut in base salary and fees, effective from 1 April.

Vistry said it remains "financially strong". As at 21 April, net debt was below its expectations at ?440m, versus ?435m on 24 March, with a balance of around ?40m of revenues from work already completed at the end of March expected to be received in the next two weeks.

At 1025 BST, the shares were up 6.7% at 775p.

William Ryder, equity analyst at Hargreaves Lansdown, said: "Vistry's managed to keep selling properties during the lockdown, which is positive news. However, the sales rate has been considerably reduced and the group gave no indication on pricing.

"Taylor Wimpey said pricing had remained stable, albeit with a lower sales rate, so it's possible that Vistry has seen something similar. Demand for new houses definitely seems to been reduced by the current uncertainty, but it doesn't seem to be as bad as some had feared. However, it's possible that things will get worse from here if we enter a prolonged recession.

"Vistry's planning to reopen partnership construction sites quite soon, and housing should follow reasonably promptly. This order reflects the relative reliability of partnership sales, but any return to activity will be welcome."