TIDMVTY
RNS Number : 2658E
Vistry Group PLC
27 February 2020
27 February 2020
Further operational progress, 12% increase in profits
Integration of Vistry Group progressing very well
Vistry Group PLC (the 'Group') is today issuing its full year
results for the 12 months ended 31 December 2019.
Full year highlights
- Increase to 5-star HBF customer satisfaction rating(1)
- Another record year of profits with profit before tax pre
exceptional items increasing by 12% to GBP188.2m, ahead of market
consensus(2)
- Sustained step up in sales rate to 0.58 per outlet per week, 16% up on the prior year
- Controlled and disciplined period end with completions up 3% to 3,867 units
- Operating margin progression to 17.0% despite continued backdrop of market uncertainty
- Strong land acquisition including valuable strategic land conversion
- 300 basis points increase in ROCE to 22.3%
- Further GBP60m returned to shareholders through bonus share issue in Jan 2020
- Total ordinary dividend payable for 2019 increased to 61.5 pence per share
FY19 FY18 Change
----------------------- ------------- ------------ --------
Total completions(3) 3,867 3,759 +2.9%
Average selling price GBP280.2k GBP273.2k +2.6%
Group revenue GBP1,130.8m GBP1,061.4m +6.5%
Operating margin(4) 17.0% 16.4% +60 bps
Profit before tax(5) GBP188.2m GBP168.1m +12.0%
Earnings per share(5) 111.5p 101.6p +9.7%
Net cash GBP362.0m(6) GBP126.8m +185.5%
Return on capital
employed(7) 22.3% 19.3% +300bps
----------------------- ------------- ------------ --------
Notes: (1) Q3 2019 12 months rolling data score of 90.5% and
recent results suggest we can anticipate achieving a 5-star rating
for the Group when the full year results are published in late
March 2020. (2) Bloomberg consensus pre-exceptional profit before
tax for Vistry Group for 12 months ended 31 December 2019 of
GBP181.0m as at 25 February 2020. (3) Includes 58 joint venture
completions. (4) Pre-Exceptional costs of GBP12.8m relating to the
Acquisition. (5) Pre exceptional costs of GBP13.5m relating to the
Acquisition. (6) Net cash includes net proceeds of GBP150m from
placing of new ordinary shares to raise funds for the acquisition
of Linden Homes and Galliford Try's Partnerships & Regeneration
business ("the Placing"). (7) Return on capital employed is
calculated as operating profit pre exceptional items divided by the
average of opening and closing shareholders' funds less net cash,
excluding investments in joint ventures.
Vistry Group
- Transformational acquisition of Linden Homes and Vistry
Partnerships ("the Acquisition") completed on 3 January 2020
- Excellent progress to date with integration of the three
businesses under the new corporate name Vistry Group
- On track to deliver clear and significant benefits from this
market leading combination including pre-tax cost synergies of at
least GBP35m p.a. by the end of FY21
- Housebuilding focused on successful integration and deleveraging in 2020
- Targeting controlled volume growth, maximising opportunities
from dual branding, and margin progression thereafter
- Vistry Partnerships to accelerate revenue growth through
step-up in land led, higher margin development; targeting 6,000
units p.a. and an operating margin in excess of 10%
Greg Fitzgerald, Chief Executive commented,
"For the last three years, Bovis Homes has focused on putting
the customer back at the centre of everything we do. As a result,
and thanks to the hard work of our people, I am delighted we have
achieved a 5-star HBF customer satisfaction rating. We have also
made further operational progress in the year across all business
areas resulting in another year of record profits.
"It is from this position of strength that we completed the
transformational acquisition of Linden Homes and Vistry
Partnerships to create one of the UK's leading homebuilders. We are
making excellent progress with integration, and I am confident we
will deliver the clear and significant benefits from this exciting
combination."
Current trading and outlook
- Strong start to the year with increased levels of consumer
demand seen across all operating regions
- Underling average sales rate per site per week up 15% with
some positive momentum on underlying pricing
- Good opportunities in the land market across both sectors
Housebuilding
- Strong forward sales position with 48% of consensus housebuilding revenues for FY20 secured
- Business firmly focused on successful integration in 2020 and
maximising benefits from the combination
Partnerships
- Vistry Partnerships will continue to pursue its growth plans
for 2020, being less impacted by the integration process
- Strategy of significantly increasing development revenues will
be reflected in a step-up of land acquisition and strategic land
opportunities
- Entered into a GBP95m development with Citizen Housing Group
to deliver 360 new homes at Lea Castle, Kidderminster and a
contract with Red Door Ventures Limited, a newly formed subsidiary
of Newham Council, to deliver GBP63m scheme including 182
residential units
- Strong forward order book with an increase in mixed-tenure
forward sales to GBP244m (FY19: GBP159m) and contracting order book
totalling GBP890m (FY19: GBP960m), with 88% of FY20 orders
secured
There will be a meeting for analysts and investors at 8:15am
today at Numis, The London Stock Exchange Building, 10 Paternoster
Square, London, EC4M 7LT. The presentation will be audiocast live
on the Vistry Group corporate website, www.vistrygroup.co.uk from
8:30am. A playback facility will be available shortly after the
presentation has finished.
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 01732 280272
Earl Sibley, Chief Financial Officer 020 7250 1446
Susie Bell, Head of Investor Relations
Powerscourt
Justin Griffiths, Nick Dibden, Victoria
Heslop
Chief Executive's report
2019 in review
The Group has made further significant operational progress in
2019 resulting in another year of record profits, with group profit
before exceptional items and tax up 12.0% to GBP188.2m.
Building high quality new homes and providing our customers with
excellent service remains our key priority, and I am delighted this
is reflected in an increase in our HBF customer satisfaction rating
to 5-star; a very significant step up from our 2-star rating in
2017. In addition, 2019 saw the roll out of Bovis Homes' new
Phoenix Housing Collection which incorporates more modern, open
plan designs and has received very positive customer feedback.
With heightened uncertainty surrounding Brexit and the general
election in December, we saw downward pressure on house prices in
the second half of 2019. This was partially mitigated through a
combination of the Group's own build cost saving initiatives and a
lack of cost inflation. As a result, we are pleased to have
delivered further operating margin progression, reporting an
increase of 60 basis points to 17.0%, pre-exceptional items.
On 10 September 2019 we announced the potential combination
between Bovis Homes and Galliford Try's Linden Homes and
Partnerships & Regeneration businesses. Following detailed due
diligence, the Acquisition exchanged on 7 November when the Group
also successfully raised net proceeds of c. GBP150m through a share
placing to help fund the acquisition.
Completion of the Acquisition on 3 January 2020, has firmly
positioned the enlarged Group as one of the UK's top housebuilders
and established it as a leader in the highly attractive, high
growth partnerships sector. Our priority for 2020 is to
successfully integrate the housebuilding businesses and ensure we
maximise the very significant benefits we are confident can be
delivered from this exciting new combination.
Operational update
Strong sales performance
The Group saw a significant and sustained step up in its sales
rate in 2019 to an average sales rate per outlet per week of 0.58
(2018: 0.50), an increase of 16%. Achieved against a backdrop of
market uncertainty for much of the year, this uplift reflects the
Group's significantly improved customer offering and build
procedures.
Help to Buy remains an important scheme and 23% (2018: 27%) of
total completions utilised the scheme in the year. We continue to
use part exchange in a controlled manner with 7% (2018: 6%) of
total completions utilising this in the period.
The Group completed a total of 3,867 (2018: 3,759) new homes in
2019 including 58 (2018: nil) joint venture completions, a 3%
increase on the prior year. Private homes totalled 2,678 (2018:
2,567) units with 1,189 (2018: 1,192) affordable housing units,
representing 31% (2018: 32%) of total completions.
Customer service
Customer service remains central to everything we do, and we are
delighted this is reflected in our HBF customer satisfaction score
being above 90% for Q3 2019, equivalent to a 5-star rating.
In 2019 we implemented our customer relationship management
system, 'Keys', across our Sales and Care teams. This provides us
with a single transparent view of each customer's journey, from
reservation through the warranty period, delivering us greater
insight and information. It also empowers our customers with
self-reporting functionality, giving them greater control of the
process and access to report any issues.
Following direct feedback from our Home Buyers Panel, we
launched our first 'Unwrapped Home' at Embrook Place in Wokingham
this year. Here customers can see the different phases of
construction of their home, including the methods and materials
used in the structure, plumbing and electrics.
We were very pleased to have received the Ministry of Defence's
Gold Award in their Employer Recognition Scheme. The Group first
signed the Armed Forces Covenant in 2016 and has since worked to
ensure that past and present members of the Forces along with their
families receive outstanding support, from mentoring placements and
trainee programmes, to assisting military personnel looking to get
on the property ladder. We are proud to be the only dedicated
housebuilder to have achieved Gold Award status.
High build quality
Delivering high quality new homes is a key priority and we have
seen very significant progress in this area over the past couple of
years. The Bovis Homes site teams have been a key area of focus,
and we have invested in recruiting, developing and retaining a
high-quality workforce on site. As a result, we have benefitted
from an improved subcontractor base, with whom we have established
strong partnerships. We continue to strengthen these relationships
as highlighted by the improving scores from the bi-annual feedback
surveys we facilitate.
We are delighted that in 2019, six of our site managers were
awarded NHBC Pride in the Job Quality awards and that our NHBC
Construction Quality Review for 2019 highlighted a 26% improvement
in our Group score over the past two years.
Phoenix housing range
We launched the new Bovis Homes housing range, the Phoenix
Collection, in 2018 and successfully replanned the Group's owned
land bank during 2018 and 2019 with the new house types where
appropriate. The modern design and open plan living meet today's
customer needs, while the design and specification allow the Group
to drive efficiency and cost reduction.
The first 'Phoenix' home was completed in June 2019, with a
total of 358 completions from the range during the year,
representing 14% of private completions. We currently have 1,040
units under construction using the new range and expect c. 1,400 of
private completions in 2020 to be Phoenix house types.
People
People satisfaction remains a key priority and, in the year, we
continued to invest in the development, training and well-being of
our workforce including our subcontractors. Through our dedicated
Learning and Development team we delivered more than 4,500 delegate
training days in 2019, including our trainee assistant site manager
programme and leadership training.
With the ever-increasing awareness and prevalence of mental
health issues in the construction industry, one of our key focal
points this year has been the roll-out of mental health first aid.
The Group has also pledged its support for the Lighthouse
Construction Industry Charity campaign which aims to tackle mental
health issues across the wider construction industry. The campaign
will deliver vital support including, the provision of a
confidential 24/7 industry helpline, and retraining for workers who
have been injured or who have suffered from an illness that means
they cannot return to their normal work.
We are pleased to report our employee engagement level, as
measured by our monthly employee engagement survey, has remained at
a high level and ahead of the survey benchmark.
Investment in systems and processes
During the year we continued to invest in our systems and
processes to drive efficiency and best practice across all business
areas. We have implemented the Keys system along with a new
document management solution across the whole business to support
employees on site and in the office as well as our customers. In
addition, we have furthered our implementation of the COINS
software system with further functionality across sales, land,
build and commercial.
Land acquisition
The Group continued to acquire high quality land opportunities
in the year with a total of 4,531 (2018: 4,164) plots added to the
owned land bank, with the land acquired expected to deliver at
least a gross margin of 26% and ROCE of 25%. Strategic land remains
a valuable source of land for the Group and we converted 2,146
(2018: 1,958) plots from our strategic land bank during the year
including 831 plots at Comeytrowe, Taunton, and 783 plots at
Cambourne near Cambridge.
Partnerships
Excellent progress was made with the Group's Partnerships
business, launched in early 2019. We entered into a total of eight
land led partnerships with housing associations in 2019 including
the joint venture of our development at Stanton Cross,
Wellingborough with Riverside, joint operations at Alphington and
Comeytrowe with LiveWest, and a joint venture with Metropolitan
Thames Valley at Cambourne.
Vistry Group
Vistry Group was formed on 3 January 2020 following the
acquisition of Linden Homes and the Partnerships & Regeneration
businesses of Galliford Try plc for an agreed price of GBP1.075
billion. The acquisition presented an excellent and unique
opportunity for Bovis Homes to acquire both a top UK housebuilder
in Linden Homes, and one of the leaders in the highly attractive,
high growth partnerships business.
Top five national housebuilder
The acquisition has firmly positioned Vistry Group as one of the
UK's top five housebuilders with the capacity to deliver up to
14,000 new units p.a. With an enhanced national customer
proposition and coverage, the Group can compete more effectively
against the other major players in the UK private and affordable
housebuilding sector. It has a high-quality land bank, with a total
of 40,135 plots including joint ventures, and a valuable pipeline
of strategic land totalling 31,965 plots.
Market leading in Partnerships Housing
The Group announced the launch of its own Partnerships business
in early 2019, identifying partnerships housing as a key
sustainable growth area with more resilient earnings across the
cycle and therefore reducing the Group's risk profile.
Vistry Partnerships is one of the leading and most established
operators in this area and, with a very strong record of growth, is
a partner of choice for housing associations, local authorities and
government agencies. There remains a fundamental housing shortage
in the UK, and government commitment to increasing housing supply
is strong, with a significant increase in investment from housing
associations in particular. A key strength of the Vistry
Partnership business model is the ability to develop across all
housing tenures through both contracting and development-led
partnerships.
Synergies
As previously stated, we expect to deliver a run-rate of pre-tax
cost synergies of at least GBP35m p.a. by the end of 2021 as a
result of combining the businesses.
Of this, at least GBP20m p.a. is expected to come from a
reduction in operating costs though the streamlining of the
regional and operational models. Within housebuilding, we have
streamlined the regional operations moving from 17 regional
business units to 13, and we expect a c. 8% reduction in headcount
across the business including central services.
At least GBP15m of synergies is to be achieved from procurement
savings and the optimisation of specification across our three
housing ranges: The Phoenix Collection, The Linden Collection and
Partnerships housing. We are making good progress with this, and on
renegotiating our supply contracts for the enlarged Group.
It is expected that c. GBP12m of this benefit will be achieved
in 2020, with the recurring run-rate of at least GBP35m p.a.
achieved by the end of 2021.
Group strategic priorities
The Group's strategic priorities remain investing in our people,
ensuring we retain high levels of customer satisfaction, ensuring a
healthy and safe working environment, and delivering enhanced
returns to our shareholders.
We will continue to invest in the development and training of
our people to ensure a committed, motivated and engaged workforce.
We are firmly focused on increasing the supply of much needed new
homes of all tenures across England and delivering high quality new
homes and a high level of customer service that meets the
expectations of our customers throughout their entire journey with
Vistry Group. Ensuring the health and safety of our people is
unequivocally at the core of our business. Alongside these
priorities, driving enhanced returns for our shareholders through
increased profitability, return on capital and total shareholder
returns is our goal.
Housebuilding strategy
The housebuilding business of the Group operates with two
leading brands, Bovis Homes and Linden Homes. The business has
national scale and coverage with 13 operating regions, down from 17
on completion of the acquisition. Hands on management remains key
and each regional office is located within easy reach of its
developments. Our housebuilding business has an expanded geographic
reach across England including operations in the attractive
Yorkshire area, and a strengthened position in core areas in the
south including along the South Coast.
The business strategy is to maximise output through controlled
volume growth in the medium term while maintaining high quality
delivery. Each of the 13 operating regions has the capacity to
deliver c. 550 - 625 new housing units p.a., giving the
housebuilding business the potential to grow and deliver more than
8,000 units p.a. The housebuilding business is divided into a North
and South structure, led by a highly experienced management team
combined from both Bovis Homes and Linden Homes.
Longer term, potential future geographic expansion for
housebuilding could be supported by Vistry Partnerships' greater
geographic reach.
Maximising the opportunities from being a dual branded
housebuilder through ensuring we provide our customers a breadth of
product choice to best meet their needs is a priority. Each brand
will retain its own housing range, the Phoenix Collection for Bovis
Homes and the Linden Collection, with the ranges currently being
reviewed and refined. We already have both our brands successfully
selling alongside each other on eight of our sites and see
significant further opportunity. With two brands, we are more
competitive in the land market. We have a greater appetite for
larger sites where we can promote both brands, increasing overall
production, demand and sales rates, and driving higher returns on
capital employed.
Vistry Partnerships - strategy
The Vistry Partnerships business holds a strong and unique
position within the partnerships market, combining contracting and
development expertise on a national scale, supported by two leading
housebuilding brands.
The strategy is to accelerate the revenue growth from the
business' 10 operating regions through increasing output from the
existing infrastructure and expansion into new geographies. The
Group is targeting an increase in units (including equivalent
units) to 6,000 p.a. and revenues of at least GBP1 billion. This
growth is to be driven by an increase in higher margin development
revenues to 50% of total partnerships revenues, whilst maintaining
relatively stable contracting revenues.
The Group's land supply and strategic land capability will
support the growth of higher margin development revenues. Bovis
Homes' Partnerships business, launched in 2019, made very good
progress in this area during the year, with eight of the Group's
larger developments being put into partnership arrangements with
housing associations. Three of these developments have now been
transferred to Vistry Partnerships.
Development revenues typically generate an operating margin of
between 14% to 18% as compared to a low single digit operating
margin for contracting revenues. With this change in mix, Vistry
Partnerships is targeting a significant step-up in profitability to
an operating margin of at least 10%.
Operational priorities - integration
Our clear focus for 2020 is the successful integration of the
businesses to ensure we maximise the significant benefits to be
realised from the combination. The integration process is well
under way and much progress has been made to date.
Our housebuilding business has been reorganised with the
regional operating areas defined and Managing Directors for each
business unit confirmed. The Phoenix Collection and Linden
Collection housing ranges are being reviewed and refined, and the
centralising of, and negotiations on procurement are progressing
well.
On operating systems, the health and safety systems are aligned,
and the COINS construction software is to be harmonised across
housebuilding in the first half of this year and implemented within
Vistry Partnerships in the coming year.
Land
The Group has a high-quality owned land bank with strong
fundamentals and excellent forward visibility. On housebuilding all
of our land for 2020 has detailed planning consent and 91% of our
land for 2021 is secured. All of our land for Vistry Partnerships
for 2020 is secured and 87% for 2021.
We are very active in the land market and continue to see good
opportunities. In housebuilding we have acquired 1,489 plots across
5 sites in the year to date and looking ahead we expect to acquire
land in line with our target of maintaining a 3.5 to 4.0 years land
bank. On average we are targeting slightly smaller units to
maximise demand and output which we expect to result in a reduced
average selling price in the land bank in the medium term.
For Vistry Partnerships, we expect to increase our land supply
in-line with our strategy of increasing our land-led development
revenues.
With our dual branded housing business and growth strategy for
partnership development revenues, the Group has an increased
appetite for larger sites and higher margin strategic
opportunities.
Balance sheet
We have a robust balance sheet following completion of the
acquisition with GBP600m of committed banking facilities, and
GBP100m of private placement notes transferred from Galliford Try.
We will continue to acquire land utilising land creditors where
good deferred terms are available.
We expect the business to deleverage over the next two years
with gearing including land creditors targeted to decrease below
30% by December 2020 and continue to decline in 2021.
We expect to maintain a housebuild land bank of between 3.5 and
4.0 years and to increase Partnerships' landbank in-line with our
growth strategy, including investment in strategic land. We will
optimise our work in progress, notably utilising our dual branding
capability to drive capital efficiency on larger sites. Part
exchange will continue to be utilised on a controlled basis with a
focus on holding no stock properties beyond three months.
Dividends
The Group's dividend policy has been, and will continue to be,
to maintain a robust and efficient balance sheet and to deliver
sustainable dividends to shareholders.
In September 2017, the Group announced its intention to return
surplus capital resulting from its balance sheet optimisation
initiatives totalling GBP180m to shareholders in the three years to
2020, with the first GBP60m paid as a special dividend to
shareholders in November 2018.
The expected special dividend for 2019 was returned to
shareholders by way of a GBP60m bonus issue to shareholders on 2
January 2020. Reflecting the Group's new strategy following the
acquisition, there will be no further special dividend payments in
relation to the GBP180m capital return initiative.
Instead of paying the Bovis Homes 2019 final dividend, a second
interim cash dividend of 41 pence per share will be paid on 29 May
2020 to shareholders on the register as at 27 December 2019.
Including the first interim dividend of 20.5 pence per share, this
brings the total ordinary dividend for 2019 to 61.5 (2018: 57.0)
pence per share.
The Group expects to maximise sustainable dividends to
shareholders with an ordinary dividend cover of 2 times initially,
moving towards a dividend cover of 1.75 times following a period of
integration and deleveraging. The Group will also consider the
general economic circumstances, with regards to the cyclicality of
the industry.
Current trading and outlook
We are pleased to report a strong start to the year with
increased levels of consumer demand seen across all our operating
regions in the first seven weeks.
For housebuilding in the first seven weeks, the underling
average sales rate per site per week is up 15%, and we have seen
some positive momentum on underlying pricing.
In 2020, we are firmly focused on successfully integrating the
housebuilding businesses, delivering the significant benefits from
the combination as quickly as possible, and best positioning the
business to deliver controlled volume growth in the medium term. As
such we are not forecasting any volume increase for this business
area in 2020. We have a strong forward sales position with 48% of
consensus housebuilding revenues for FY20 secured.
Vistry Partnerships will continue to pursue its growth plans for
2020, being less impacted by the integration process. Its strategy
of significantly increasing higher margin development revenues,
will be reflected in a step-up of land acquisition and strategic
land opportunities for the Partnerships business.
This year, Vistry Partnerships has entered into a GBP95m
development with housing association, Citizen Housing Group, for
the delivery of 360 new homes at the former hospital site, Lea
Castle, Kidderminster. The homes for sale will be from both the
Bovis Homes and Linden Homes housing ranges.
In London, Vistry Partnerships has contracted with Red Door
Ventures Limited, a newly formed subsidiary of Newham Council to
deliver homes for rent in Plaistow. The GBP63m scheme will provide
182 residential units and associated commercial units and will
extend the Group's track record in delivering homes for the build
to rent and private rented sectors.
Vistry Partnerships has a strong forward sold position with
mixed tenure forward sales totalling GBP244m (FY19: GBP159m) of
which GBP162m (FY19: GBP81m) is for private units. On contracting,
the order book stands at GBP890m (FY19: GBP960m), with 88% of the
FY20 order book secured. In addition, over GBP1.5bn (FY19:
GBP1.4bn) is at preferred bidder status or land acquisition
stage.
Financial Review
Trading Performance
In line with our strategy, the Group delivered controlled volume
growth during 2019 resulting in a 3% increase in legal completions
([1]) to 3,867 (2018: 3,759). This included 1,184 affordable homes
representing 31% of total completions (2018: 32%). Total revenue
was GBP1,130.8m, an increase of 7% on the previous year (2018:
GBP1,061.4m).
Volume FY 2019 FY 2018
====================================== ============ ============
Private legal completions 2,625 2,567
====================================== ============ ============
Affordable legal completions 1,184 1,192
====================================== ============ ============
Total legal completions 3,809 3,759
====================================== ============ ============
JV legal completions 58 -
====================================== ============ ============
Total legal completions including JVs 3,867 3,759
====================================== ============ ============
Revenue (GBPm)
====================================== ============ ============
Private legal completions 897.0 866.1
====================================== ============ ============
Affordable legal completions 170.4 160.7
====================================== ============ ============
Revenue from legal completions 1,067.4 1,026.8
====================================== ============ ============
Partnership land transactions revenue 42.4 -
====================================== ============ ============
Other revenue 14.1 20.4
====================================== ============ ============
Total development revenue 1,124.0 1,047.2
====================================== ============ ============
Land sales revenue 6.8 14.2
====================================== ============ ============
Total revenue 1,130.8 1,061.4
====================================== ============ ============
Housing revenue was GBP1,067.4m, 4% ahead of the prior year
(2018: GBP1,026.8m). The average sales price for our private homes
increased 1% to GBP341,700 (2018: GBP337,400) with our overall
average sales price increasing 2% to GBP280,200 (2018:
GBP273,200).
Other revenue was GBP14.1m (2018: GBP20.4) primarily driven by
the release of deferred revenue from disposals within our PRS joint
ventures. The disposals from our PRS joint ventures are largely
complete as at the end of 2019.
Partnership land transactions revenue of GBP42.4m was generated
from six land sales in the period with housing associations, where
the Group will develop the sites in partnership with the housing
associations, with the expected site wide development margin for
the Group, at a level similar to our standard housing business. In
February 2019 we announced the launch of our new Partnerships
Housing Division and following the Acquisition, we now have a
leading partnerships business, working alongside housing
associations to increase output and deliver best returns from our
development land.
Land sales revenue of GBP6.8m in 2019 primarily relates to the
disposal of the final out-of-operating area site in the period at
Penwortham near Preston, realising GBP6.4m of cash and contributing
GBP0.1m in profit.
Total adjusted gross profit[2] was GBP253.4m (adjusted gross
margin: 22.4%), compared with GBP230.9m (gross margin: 21.8%) in
2018. Housing adjusted gross margin was 22.8% in 2019, ahead of the
21.9% achieved in 2018. The adjusted gross margin was impacted by
market influences during the year with sales price inflation being
flat in the first six months and showed a 1-2% decrease in the
second half. The Group saw construction cost inflation of c. 3-4%
in the first six month of 2019, flattening out in the second half
with the market uncertainty from Brexit and the general election.
The gross margin was positively impacted by the increasing embedded
gross margin in our land bank and our operational improvements
including the initial impacts from our margin initiatives.
During 2019, our construction costs decreased by 2% per square
foot, reflecting the first half cost inflationary impacts being
more than offset by reductions in our cost base as we delivered
production in a controlled manner and changes in specification in
line with our margin initiative.
Operating profit increased to GBP192.6m before exceptional items
(2018: GBP174.2m) at an operating profit margin of 17.0% (2018:
16.4%). Administrative expenses increased in 2019 to GBP60.9m
(2018: GBP56.7m) reflecting the Group's efficient operating
structure, offset by higher employee costs and the ongoing
investment in new processes, systems and training.
Exceptional costs of GBP13.5m relate to the acquisition; this
transaction completed on 3 January 2020. The costs include certain
advisory costs as well as some cost relating to the refinancing of
the Group.
The Group delivered a record profit before tax before
exceptional items for the year ended 31 December 2019 of GBP188.2m,
comprising operating profit of GBP192.6m, net financing charges of
GBP6.1m and GBP1.8m of share in JV profit. After exceptional items
profit before tax was GBP174.8m, this compares to GBP168.1m of
profit before tax in 2018, which comprised GBP174.2m of operating
profit and GBP6.1m of net financing costs.
Financing and Taxation
Net financing charges before exceptional items during 2019 were
GBP6.1m (2018: GBP6.1m) reflecting the marginally lower net debt in
the period, a consistent level of commitment fees, and issue costs
amortised, as well as the impact of implementing IFRS 16 in the
period (GBP0.6m), discussed in note 5.5 to the financial
statements.
The Group has recognised a tax charge of GBP36.4m at an
effective tax rate of 20.8% (2018: tax charge of GBP31.5m at an
effective rate of 18.7%); this rate is higher than the current rate
of 19.0% primarily as a result of non-deductible exceptional costs
incurred in the year and an adjustment made in respect of the prior
year. The Group has a current tax liability of GBP20.9m on its
balance sheet as at 31 December 2019 (2018: GBP18.1m).
Dividends and EPS
The first interim dividend of 20.5 pence per share (2018: 19.0
pence) was paid on 22 November 2019. A second interim dividend of
41.0 pence per share (2018 final dividend: 38.0 pence) has been
declared and will be paid on 29 May 2020 to holders of ordinary
shares on the register at the close of business on 27 December
2019, bringing total ordinary dividends for the year to 61.5 pence
per share (2018: 57 pence).
Instead of a cash special dividend, a bonus issue of shares was
made to shareholders on the register at the close of business on 2
January 2020; for every one share held at the bonus issue record
time, 0.03819 bonus shares were issued (2018 special dividend: 45.0
pence). The dividend reinvestment plan, introduced in 2012, gives
shareholders the opportunity to reinvest their dividend.
Basic EPS pre-exceptional of 111.5p (2018: 101.6p) has increased
10% year on year as a result of record profit having incorporated
the Placing.
Basic EPS post-exceptional of 101.5p (2018: 101.6p) has remained
consistent year on year.
Net Assets and Cash flow
As at 31 December 2019 net assets of GBP1,272.0m were GBP210.9m
higher than at the start of the year, driven by an increase in the
cash balance through operating cash flow which has subsequently
been utilised to fund the Acquisition. Net assets per share as at
31 December 2019 were 857 pence (2018: 787 pence).
Investments increased by GBP56.1m since the start of the year,
primarily driven by the creation of the joint venture with
Riverside Housing Limited in respect of the development of Stanton
Cross, Wellingborough, in April. In addition, the Group entered
into a joint venture in December with Metropolitan Living Limited
in respect of a new strategic development at Cambourne West,
Cambridgeshire.
Retirement benefit assets increased by GBP3.1m primarily as a
result of higher than expected returns on the scheme's assets and
contributions to the fund in the period. This has resulted in a
pension surplus of GBP4.5m at 31 December 2019 (2018: GBP1.4m).
Inventories decreased during the year by GBP112.6m to
GBP1,207.7m. The value of residential land, the key component of
inventories, decreased by GBP142.4m. This reflects completions
during the period as well as the impact of Partnership land
transactions and the sale of our Stanton Cross development at
Wellingborough into a joint venture. Other movements in inventories
included an increase in work in progress of GBP31.0m driven by the
infrastructure investment on a number of our new developments
including Northstowe, Peterborough and Essington. Whilst our usage
of part exchange as a sales tool increased in the year, our part
exchange properties balance has decreased by GBP1.6m, as we
continue to make use of this sales tool, in a controlled and
disciplined manner, with no properties held for more than three
months unsold at the end of the period.
Trade and other receivables increased by GBP41.3m, driven by
increased balances receivable from housing associations at 31
December 2019. Trade and other payables increased by GBP12.8m,
predominantly reflecting increased accruals and trade creditors
from production offset by GBP34.1m net settlement of land
creditors. Land creditors decreased to GBP260.7m (2018: GBP293.3m)
representing 36% (2018: 34%) of our gross land investment and
includes significant balances in respect of longer-term schemes at
North Whiteley and Alphington SW Exeter purchased in 2019.
Following implementation of IFRS 16 in 2019, right of use assets
of GBP21.3m and lease liabilities of GBP23.0m have been recognised
on the balance sheet; further detail is discussed in notes 5.5 and
5.14 to the financial statements.
As at 31 December 2019 the Group's net cash balance, which
reflects cash and cash equivalents less bank and other loans, was
GBP362.0m (2018: GBP126.8m). Net cash is quoted excluding the lease
liabilities arising on adoption of IFRS 16, the impact of which is
clearly disclosed in note 5.5 to the financial statements. The
Group started the year with net cash of GBP126.8m and generated an
operating cash inflow before land expenditure of GBP281.4m (2018:
GBP291.2m) and recognised a reduction of GBP36.4m in loans. The
loan reduction arose as a result of the movement of funding from
Homes England into the newly formed joint venture with Riverside at
Stanton Cross, Wellingborough. Net cash payments for land
investment increased to GBP184.7m (2018: GBP145.4m), reflecting the
timing of land acquisitions and reduction in land creditors. Cash
inflows from joint ventures were GBP74.7m (2018: nil), generated on
the sale of land and inventory into the Stanton Cross,
Wellingborough joint venture. Dividend and tax outflows decreased
to GBP112.4m (2018: GBP158.8m) driven by decreased corporation tax
payments and the payment of special dividend by way of shares
rather than cash; payments relating to dividends were GBP78.6m
(2018: GBP129.7m). A further GBP152.2m of cash was raised by the
Placing in November 2019.
At 31 December 2019, we had a committed revolving credit
facility of GBP250m in place. Following refinancing driven by the
Acquisition. The Group currently has in place GBP150m in 3 year
term borrowings, a GBP450m revolving credit facility (GBP410m 5
year, GBP40m 3 year) and GBP100m USPP 7 year term borrowings. The
private placement was taken on as part of the Acquisition.
The Acquisition was a non-adjusting post balance sheet
event.
Cashflow 2019 2018
GBPm GBPm
------------------------------------------ -------- --------
Net cash at 1 January 126.8 144.9
Profit in the year 138.4 136.6
Dividends and taxes paid (112.4) (158.8)
Issue of shares 149.8 -
Movement in trade and other receivables (58.2) 12.4
Movement in inventories 115.2 (1.9)
Movement of investment in joint ventures (58.5) (20.3)
Other 60.9 13.9
------------------------------------------ -------- --------
Net cash at 31 December 362.0 126.8
------------------------------------------ -------- --------
Land Bank 2019 2018
--------------------------------------- ---------- ----------
Consented plots added 4,531 4,164
Sites added 18 19
Sites owned at period end 116 117
Total plots in land bank at period end
including joint ventures 17,328 17,328
--------------------------------------- ---------- ----------
Average consented land plot ASP GBP299,000 GBP305,000
Average consented land plot cost GBP46,411 GBP54,900
--------------------------------------- ---------- ----------
The Group's total land bank including share of joint venture
plots as at 31 December 2019 represents 3.9 years of supply based
on 4,000 completions p.a., reflecting our strategy to maintain an
optimal land bank at 3.5 to 4.0 times. The 3,867 plots, including
joint ventures, that legally completed in the year were replaced by
a combination of site acquisitions and conversions from our
strategic land pipeline. Based on our appraisal at the time of
Acquisition, the new additions, on average, are expected to deliver
a future gross margin of over 26% and a ROCE in excess of 25%.
The average selling price of all units within the consented land
bank decreased over the year to GBP299,000, 2% lower than the
GBP305,000 at 31 December 2018. The estimated embedded gross margin
in the consented land bank as at 31 December 2019, based on
prevailing sales prices and build costs was 24.8% and reflects the
initial impact of our margin initiatives.
Strategic land continues to be an important source of supply and
during the year 4,531 plots have been converted from the strategic
land pipeline into the consented landbank.
Group income statement
2019 2019 2019 2018
GBP000 GBP000 GBP000 GBP000
For the year ended 31 December Pre Exceptional Exceptional Post Exceptional
================================== ================ ============ ================= =========
Revenue 1,130,768 - 1,130,768 1,061,396
================================== ================ ============ ================= =========
Cost of sales (888,012) - (888,012) (830,505)
================================== ================ ============ ================= =========
Gross profit 242,756 - 242,756 230,891
---------------------------------- ---------------- ------------ ----------------- ---------
Adjusted gross profit 253,431 - 253,431 230,891
Other operating income (10,675) - (10,675) -
Gross profit 242,756 - 242,756 230,891
---------------------------------- ---------------- ------------ ----------------- ---------
Administrative expenses (60,864) (12,846) (73,710) (56,723)
================================== ================ ============ ================= =========
Other operating income 10,675 - 10,675 -
================================== ================ ============ ================= =========
Operating profit 192,567 (12,846) 179,721 174,168
================================== ================ ============ ================= =========
Financial income 813 - 813 481
================================== ================ ============ ================= =========
Financial expenses (6,939) (630) (7,569) (6,585)
================================== ================ ============ ================= =========
Net financing costs (6,126) (630) (6,756) (6,104)
================================== ================ ============ ================= =========
Share of profit of Joint Ventures 1,788 - 1,788 5
================================== ================ ============ ================= =========
Profit before tax 188,229 (13,476) 174,753 168,069
================================== ================ ============ ================= =========
Income tax expense (36,243) (131) (36,374) (31,499)
================================== ================ ============ ================= =========
Profit for the year attributable
to ordinary shareholders 151,986 (13,607) 138,379 136,570
================================== ================ ============ ================= =========
Earnings per share (pence)
================================== ================ ============ ================= =========
Basic 101.5p 101.6p
================================== ================ ============ ================= =========
Diluted 101.4p 101.5p
================================== ================ ============ ================= =========
Group statement of comprehensive income
2019 2018
For the year ended 31 December GBP000 GBP000
Post Exceptional
===================================================== ================= =======
Profit for the year 138,379 136,570
===================================================== ================= =======
Other comprehensive (expense) / income
===================================================== ================= =======
Items that will not be reclassified to the
income statement
===================================================== ================= =======
Remeasurements on defined benefit pension scheme (2,116) (5,781)
===================================================== ================= =======
Deferred tax on remeasurements on defined benefit
pension scheme 464 1,083
===================================================== ================= =======
Items reclassified to the income statement
===================================================== ================= =======
Total other comprehensive expense (1,652) (4,698)
===================================================== ================= =======
Total comprehensive income for the year attributable
to ordinary shareholders 136,727 131,872
===================================================== ================= =======
Balance sheets
2019 2018
As at 31 December GBP000 GBP000
============================== ========= =========
Assets
============================== ========= =========
Intangible fixed assets 4,336 1,079
============================== ========= =========
Property, plant and equipment 1,845 2,181
============================== ========= =========
Right-of-use assets 21,347 -
============================== ========= =========
Investments 85,129 28,992
============================== ========= =========
Restricted cash 1,748 1,381
============================== ========= =========
Deferred tax assets 184 -
============================== ========= =========
Trade and other receivables 1,090 611
============================== ========= =========
Retirement benefit asset 4,506 1,381
============================== ========= =========
Total non-current assets 120,185 35,625
============================== ========= =========
Inventories 1,207,667 1,320,229
============================== ========= =========
Trade and other receivables 105,374 64,505
============================== ========= =========
Cash and cash equivalents 361,962 163,217
============================== =========
Total current assets 1,675,003 1,547,951
============================== ========= =========
Total assets 1,795.188 1,583,576
============================== ========= =========
Equity
============================== ========= =========
Issued capital 74,169 67,398
============================== ========= =========
Share premium 359,857 216,907
============================== ========= =========
Retained earnings 837,940 776,762
============================== ========= =========
Total equity attributable to
equity holders of the parent 1,271,966 1,061,067
============================== ========= =========
Liabilities
============================== ========= =========
Bank and other loans - 36,401
============================== ========= =========
Lease liabilities 16,686 -
============================== ========= =========
Deferred tax liability - 730
============================== ========= =========
Trade and other payables 122,940 183,769
============================== ========= =========
Total non-current liabilities 139,626 220,900
============================== ========= =========
Trade and other payables 352,359 278,706
============================== ========= =========
Lease liabilities 6,309 -
============================== ========= =========
Provisions 3,989 4,843
============================== ========= =========
Current tax liabilities 20,939 18,060
============================== =========
Total current liabilities 383,596 301,609
============================== ========= =========
Total liabilities 523,222 522,509
============================== ========= =========
Total equity and liabilities 1,795,188 1,583,576
============================== ========= =========
Group statement of changes in equity
Total
retained Issued Share Total
earnings capital premium GBP000
GBP000 GBP000 GBP000
========================================== ========== ========= ========= =========
Balance at 1 January 2018 773,255 67,330 215,991 1,056,576
========================================== ========== ========= ========= =========
Total comprehensive income 131,872 - - 131,872
========================================== ========== ========= ========= =========
Issue of share capital - 68 916 984
========================================== ========== ========= ========= =========
Deferred tax on other employee benefits (113) - - (113)
========================================== ========== ========= ========= =========
Share based payments 1,413 - - 1,413
========================================== ========== ========= ========= =========
Dividends paid to shareholders (129,665) - - (129,665)
========================================== ========== ========= ========= =========
Total transactions with owners recognised
directly in equity (128,365) 68 916 (127,381)
========================================== ========== ========= ========= =========
Balance at 31 December 2018 776,762 67,398 216,907 1,061,067
========================================== ========== ========= ========= =========
Balance at 1 January 2019 776,762 67,398 216,907 1,061,067
========================================== ========== ========= ========= =========
IFRS16 opening adjustment 65 - - 65
========================================== ========== ========= ========= =========
Total comprehensive income 136,727 - - 136,727
========================================== ========== ========= ========= =========
Issue of share capital - 6,771 142,950 149,721
========================================== ========== ========= ========= =========
Deferred tax on other employee benefits 140 - - 140
========================================== ========== ========= ========= =========
Share based payments 2,891 - - 2,891
========================================== ========== ========= ========= =========
Dividends paid to shareholders (78,645) - - (78,645)
==========================================
Total transactions with owners recognised
directly in equity (75,549) 6,771 142,950 74,172
========================================== ========== ========= ========= =========
Balance at 31 December 2019 837,940 74,169 359,857 1,271,966
========================================== ========== ========= ========= =========
Statements of cash flows
2019 2018
For the year ended 31 December GBP000 GBP000
============================================ ======== =========
Cash flows from operating activities
============================================ ======== =========
Profit for the year 138,379 136,570
============================================ ======== =========
Depreciation and amortisation 6,253 905
============================================ ======== =========
Financial income (813) (481)
============================================ ======== =========
Financial expense 6,939 6,585
============================================ ======== =========
Loss/(profit) on sale of property,
plant and equipment 3 (450)
============================================ ======== =========
Equity-settled share-based payment
expense 2,891 1,413
============================================ ======== =========
Income tax expense 36,374 31,499
============================================ ======== =========
Share of results of Joint Ventures (1,788) (5)
============================================ ======== =========
Profit released on sale of assets from
joint ventures (972) (1,197)
============================================ ======== =========
(Increase)/decrease in trade and other
receivables (58,234) 12,402
============================================ ======== =========
Decrease/(increase) in inventories 115,170 (1,891)
============================================ ======== =========
Increase/(decrease) in trade and other
payables 16,716 (15,692)
============================================ ======== =========
Decrease in provisions and retirement
benefit assets (8,629) (7,042)
============================================ ======== =========
Cash generated from operations 252,289 162,616
============================================ ======== =========
Interest paid (2,093) (2,773)
============================================ ======== =========
Income taxes paid (33,804) (29,165)
============================================ ======== =========
Net cash inflow from operating activities 216,392 130,678
============================================ ======== =========
Cash flows from investing activities
============================================ ======== =========
Interest received 131 278
============================================ ======== =========
Acquisition of intangible fixed assets (3,706) (1,213)
============================================ ======== =========
Acquisition of property, plant and
equipment (565) (1,876)
============================================ ======== =========
Proceeds from sale of property, plant
and equipment - 1,977
============================================ ======== =========
Movement of investment in Joint Ventures (58,511) (20,300)
============================================ ======== =========
Dividends received from Joint Ventures 5,135 1,067
============================================ ======== =========
Reduction in restricted cash (368) 33
============================================ ======== =========
Net cash (outflow)/generated from investing
activities (57,884) (20,034)
============================================ ======== =========
Cash flows from financing activities
============================================ ======== =========
Dividends paid (78,645) (129,665)
============================================ ======== =========
Principle elements of lease payments 5,562 -
============================================ ======== =========
Net proceeds from the issue of share
capital 149,721 984
============================================ ======== =========
(Repayment)/drawdown of bank and other
loans (36,401) 11,192
============================================ ======== =========
Net cash used in financing activities 40,237 (117,489)
============================================ ======== =========
Net increase/(decrease) in cash and
cash equivalents 198,745 (6,845)
============================================ ======== =========
Cash and cash equivalents at 1 January 163,217 170,062
============================================ ======== =========
Cash and cash equivalents at 31 December 361,962 163,217
============================================ ======== =========
1 Basis of preparation
Vistry Group PLC (the "Company"), formerly named 'Bovis Homes
Group PLC' is a company domiciled in England, the United Kingdom.
The consolidated financial statements of the Company for the year
ended 31 December 2019 comprise the Company and its subsidiaries
(together referred to as the "Group") and the Group's interest in
Joint ventures. The financial statements were authorised for issue
by the directors on 27 February 2020.
The financial information set out above does not constitute the
Company's statutory financial statements for the years ended 31
December 2019 or 2018 but is derived from those financial
statements. Statutory financial statements for 2018 have been
delivered to the registrar of companies, and those for 2019 will be
delivered in due course. The auditors have reported on those
financial statements; their reports were (i) unqualified, (ii) did
not include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of
the Companies Act 2006.
The consolidated financial statements have been prepared in
accordance with the International Financial Reporting Standards
(IFRS) and IFRS interpretations Committee (IFRS IC) interpretations
as adopted by the European Union and Companies Act 2006 applicable
to companies reporting under IFRS. The Group has applied the
following standards for the first time for its annual reporting
period commencing 1 January 2019:
-- Amendments to IAS28 'Investments in Associates and joint ventures'
-- IFRIC23 Uncertainty over income tax treatments
-- IFRS16 'Leases'
The preparation of financial statements in conformity with
adopted IFRSs requires management to make estimates and assumptions
that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of carrying
values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates. No
individual judgements have been made that have a significant impact
on the financial statements, other than those involving
estimates.
2 Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries) made up to 31 December. Control is achieved
where the Company has the power to govern the financial and
operating policies of an entity so as to obtain benefits from its
activities. The existence and effect of potential voting rights
that are currently exercisable or convertible are considered when
assessing whether the Group controls another entity. The financial
statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the
date that control ceases.
Joint ventures are those entities in which the Group has joint
control over the financial and operating policies and rights to the
net assets of the arrangement. The consolidated financial
statements include the Group's share of the comprehensive income
and expense of its joint ventures on an equity accounted basis,
from the date that joint control commenced.
Joint operations are arrangements whereby the Group has rights
to the assets and obligations for the liabilities relating to the
arrangement. The consolidated financial statements include the
Group's share of income and expenses of its joint operation within
the corresponding lines of the income statement, from the date that
joint control commenced.
3 Accounting policies
The Group has adopted IFRS 16 prospectively from 1 January 2019
and has not restated comparatives for the 2018 reporting period, as
permitted under the specific transitional provisions in the
standard. The reclassifications and the adjustments arising from
the new leasing rules are therefore recognised in the opening
balance sheet on 1 January 2019.
4 Reconciliation of net cash flow to net cash
2019 2018
GBP000 GBP000
========================================== ======= ========
Net increase in cash and cash equivalents 198,745 (6,845)
========================================== ======= ========
Decrease / (increase) in borrowings 36,401 (11,192)
========================================== ======= ========
Net cash at start of period 126,816 144,853
========================================== ======= ========
Net cash at end of period 361,962 126,816
========================================== ======= ========
Analysis of net cash:
========================== ======= ========
Cash and cash equivalents 361,962 163,217
========================== ======= ========
Bank and other loans - (36,401)
========================== ======= ========
Net cash at end of period 361,962 126,816
========================== ======= ========
5 Income taxes
Current tax is the expected tax payable or receivable on the
taxable income or loss for the year, calculated using a corporation
tax rate of 19% applied to the pre-tax income or loss, adjusted to
take account of deferred taxation movements and any adjustments to
tax payable for previous years.
6 Dividends
The following dividends were paid by the Group:
2019 2018
GBP000 GBP000
==================================== ======= =======
Prior year final dividend per share
of 38.0p (2018:32.5p) 51,078 43,645
==================================== ======= =======
Special dividend per share of nil
(2018: 45.0p) - 60,483
==================================== ======= =======
Current year interim dividend per
share of 20.5p (2018:19.0p) 27,567 25,537
==================================== ======= =======
78,645 129,665
==================================== ======= =======
The 2019 Special dividend was paid by way of bonus shares in
January 2020 with a total value of GBP66.0m.
7 Earnings per share
The calculation of basic earnings per share for the year ended
31 December 2019 was based on the profit for the year attributable
to ordinary shareholders after exceptional items of GBP138,379,000
(2018: GBP136,570,000) and a weighted average number of ordinary
shares outstanding during the year ended 31 December 2019 of
136,291,860 (2018: 134,355,573).
Profit attributable to ordinary shareholders
2019 2018
GBP000 GBP000
=========================================== ======= =======
Profit for the year attributable to equity
holders of the parent (pre-exceptional) 151,986 -
=========================================== ======= =======
Profit for the year attributable to equity
holders of the parent (post-exceptional) 138,379 136,570
=========================================== ======= =======
Weighted average number of ordinary shares
2019 2018
=========================================== =========== ===========
Weighted average number of ordinary shares
at 31 December 136,291,860 134,355,573
=========================================== =========== ===========
Diluted earnings per share
The calculation of diluted earnings per share for the year ended
31 December 2019 was based on the profit for the year attributable
to ordinary shareholders after exceptional items of GBP138,379,000
(2018: GBP136,570,000) and a weighted average number of diluted
ordinary shares outstanding during the year ended 31 December 2019
of 136,432,481 (2018: 134,557,450).
The average number of shares is increased by reference to the
average number of potential ordinary shares held under option
during the year. This reflects the number of ordinary shares which
would be purchased using the aggregate difference in value between
the market value of shares and the share option exercise price and
fair value of future employee services. The market value of shares
has been calculated using the average ordinary share price during
the year. Only share options which are expected to meet their
cumulative performance criteria have been included in the dilution
calculation.
Weighted average number of ordinary shares (diluted)
2019 2018
============================================ =========== ===========
Basic weighted average number of ordinary
shares at 31 December 136,291,860 134,355,573
============================================ =========== ===========
Effect of share options in issue which
have a dilutive effect 140,621 201,877
============================================ =========== ===========
Diluted weighted average number of ordinary
shares at 31 December 136,432,481 134,557,450
============================================ =========== ===========
Pre and post exceptional earnings per share
2019 2018
=========================================== ====== ======
Basic earnings per share pre-exceptional 111.5p 101.6p
=========================================== ====== ======
Diluted earnings per share pre-exceptional 111.4p 101.5p
=========================================== ====== ======
Basic earnings per share post-exceptional 101.5p 101.6p
============================================ ====== ======
Diluted earnings per share post-exceptional 101.4p 101.5p
============================================ ====== ======
8 Related party transactions
Transactions between fellow subsidiaries, which are related
parties, have been eliminated on consolidation, as have
transactions between the Company and its subsidiaries during this
year.
Transactions between the Group, Company and key management
personnel in the year ended 31 December 2019 were limited to those
relating to remuneration, which are disclosed in the directors
remuneration report.
Mr Greg Fitzgerald, appointed Group Chief Executive, is
non-executive Chairman of Ardent Hire Solutions ("Ardent"). The
Group hires forklift trucks from Ardent.
Mr Graham Prothero, appointed Chief Operating Officer, is
non-executive Director and Chair of the Audit Committee of
Marshalls PLC. The Group incurred costs with Marshalls PLC in
relation to landscaping services.
Mr Ian Baker, is the Managing Director of Baker Estates Ltd
where Mr Greg Fitzgerald is a majority shareholder. The Group
received advisory services from Ian Baker's consultancy company IB
(SW) in the period.
Ms Katherine Innes Ker, is a non-executive director of Vistry
Group PLC and Forterra PLC. The group incurred costs with Forterra
PLC in relation to the supply of bricks.
The total net value of transactions with related parties were as
follows:
2019 2018
GBP000 GBP000
=============================== ======= =======
Expenses paid to Ardent 2,736 2,059
=============================== ======= =======
Expenses paid to IB (SW) 20 -
=============================== ======= =======
Expenses paid to Marshalls PLC 19 -
=============================== ======= =======
Expenses paid to Forterra PLC 545 108
=============================== ======= =======
The balance of rental expenses payable to Ardent at 31 December
2019 was GBP274,399 (2018: GBP155,000) and no income was receivable
(2018: GBPnil), the balance payable to IB (SW) at 31 December 2019
was GBP67,200 and no income was receivable (2018: GBPnil), the
balance payable to Marshalls at 31 December 2019 was GBPnil and no
income was receivable (2018: GBPnil), and the balance payable to
Forterra at 31 December 2019 was GBP98,141 and no income was
receivable (2018: GBPnil) There have been no other related party
transactions in the financial year which have materially affected
the financial performance or position of the Group, and which have
not been disclosed.
9 Circulation to shareholders
The consolidated financial statements will be sent to
shareholders on [xx April 2020]. Further copies will be available
on request from the Company Secretary, Vistry Group PLC, 11 Tower
View, Kings Hill, West Malling, Kent ME19 4UY.
Further information on Vistry Group PLC can be found on the
Group's corporate website www.vistrygroup.co.uk, including the
slide presentation document which will be presented at the Group's
results meeting on 27 February 2020.
[1] Inclusive of joint venture completions.
[2] Gross profit plus other operating income
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.
END
FR EAPAKAAKEEFA
(END) Dow Jones Newswires
February 27, 2020 02:00 ET (07:00 GMT)
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