TIDMVTY
RNS Number : 3759E
Vistry Group PLC
07 July 2021
7 July 2021
Vistry Group PLC - Half year trading update
Vistry Group PLC (the "Group") is today providing an update on
trading for the six-month period ended 30 June 2021 ahead of its
half year results which will be released on 7 September 2021
Key highlights
-- Strong H1 performance significantly ahead of our expectations
at the start of the year, supported by positive customer demand
-- Step up in average weekly private sales rate to 0.76 in the
period, an increase of 10% on 2019 (2020: 0.45, 2019: 0.69(1) )
-- Group forward sales position of GBP2.7bn, with 93% of
forecast FY21 total Housebuilding units and Partnership mixed
tenure units secured, a much higher level than in prior years
-- Delivering high quality homes remains a top priority and we
are pleased to see a further improvement in our HBF 12 months
rolling Customer Satisfaction Survey score to 92.6% in the latest
quarterly data
-- Active period in the land market securing a total of 5,642
new plots, with Group's total controlled land bank increasing by
c.1,600 in last 12 months
-- Group net cash position of c. GBP32m as at 30 June 2021 (30
June 2020: net debt GBP357.3m), stronger than anticipated
reflecting the first half performance and ongoing robust working
capital management, and supports our improved expectations for 31
December 2021 net cash position
-- Housebuilding increased completions in H1 21 to 3,126 (H1 20:
1,235) units and is firmly on track to deliver c. 6,500 (FY20:
4,652) units in FY21 and an adjusted gross margin of c. 22% (FY20:
17.6%)
-- Vistry Partnerships increased higher margin mixed tenure
completions in H1 21 to 895 (H1 20: 489) units and expects to
report an increase in adjusted operating margin in H1 21 from the
8.7% reported in H2 20, making excellent progress towards its FY22
targets of GBP1bn revenue and a 10% plus adjusted operating
margin
-- The Group is well positioned for the full year, is confident it will deliver consensus market expectations(2) for FY21, and maintains its expectations for FY22
Greg Fitzgerald, Chief Executive commented:
"The Group has had a very strong first half with a step up in
completions, price increases, improved profitability and strong
cash generation, all ahead of our expectations at the start of the
year. These results would not have been possible without the hard
work and dedication of our employees and supply chain, to whom I
extend my sincere thanks.
Market trends remain positive and we are seeing good demand for
completions beyond the end of the Stamp Duty holiday. There is some
pressure across the material supply chain in terms of price
increases and extended lead times, but we are working well with our
partners to ensure successful delivery of our build programme and
expect this position to ease through the second half. House price
inflation is more than offsetting any cost pressure.
With 93% of forecast FY21 units already secured, a significantly
higher level than in prior years, we are well positioned for the
full year and are positive on the outlook as the strategic benefits
of the enlarged Group are starting to be realised."
Trading
There has been strong demand across all business areas during
the first half with our average weekly private sales rate
increasing to 0.76, up 10% on the pre-pandemic pro forma 2019 rate
of 0.69(1) . Importantly we are seeing sustained demand for units
scheduled to complete in Q4 2021, post the end of the Stamp Duty
holiday. With this strong demand, prices have increased across all
geographies that we operate within.
The Group's forward sales position has further strengthened with
93% of forecast FY21 total Housebuilding units and Partnership
mixed tenure units secured, significantly ahead of the forward sold
position in prior years. Housebuilding forward sales total GBP1.5bn
and Partnerships' mixed tenure forward sales total GBP391m. The
Partner Delivery forward order book totals GBP890m with 95% of
forecast FY21 Partner Delivery revenue secured.
Our sites are operating well, and first half completions were
delivered in a controlled manner with a firm focus on quality. The
significant step up in production across the industry has led to
some pressure on the materials supply chain resulting in extended
lead times and inflationary pressures on certain products. Working
in close partnership with our suppliers, we are actively managing
this ongoing situation. We have full visibility on our material
requirements out to the end of the financial year and an agreed
supply programme in place. The supply agreements entered into on
the formation of Vistry Group are delivering an enhanced service
and providing some protection in respect of cost inflation, with
the benefit from sales price increases more than offsetting any
cost inflation for the Group.
H1 performance
Total Housebuilding completions increased in the first half to
3,126 (H1 20: 1,235) including 604 (H1 20: 169) JV units. Of this
2,294 (H1 20: 975) completions were private units and 832 (H1 20:
260) were affordable units. Total Housebuilding average selling
price(3) in the period was c. GBP299k (H1 20: GBP294k) with a
private average selling price(3) of GBP350k (H1 20: GBP332k).
Housebuilding sold from on average of 145 sites in the first half
and we expect this to remain stable for the full year.
The business is firmly focused on driving margin improvement and
is on track to deliver an adjusted Housebuilding gross margin for
FY21 of c. 22%.
Vistry Partnerships saw a strong increase in mixed tenure
completions in the first half to 895 (H1 20: 489) including 487 (H1
20: 190) JV units. Mixed tenure average selling price(3) was c.
GBP255K (H1 20: GBP222k). Vistry Partnerships is currently selling
on 34 mixed tenure sites and we expect site numbers to increase to
c.40 at the full year. Partner Delivery revenue totalled GBP226m
(H1 20: GBP223m) in the first half in line with our
expectations.
With this significant increase in higher margin mixed tenure
revenues, Vistry Partnerships expects to report a progression in
adjusted operating margin in the first half from the 8.7% achieved
in H2 20 and is making excellent progress towards its target
adjusted operating margin of at least 10% in FY22.
Customer service
Delivering high quality homes and excellent customer service
remains a key priority. The Group maintained its 5-star HBF
Customer Satisfaction Rating for 2020 and is pleased to see a
further improvement in the latest quarterly date with our 12-month
rolling score increasing to 92.6%.
People
Investment in the development and training of our people to
ensure a committed, motivated, and engaged workforce is a key
priority. Mental health awareness and wellbeing is an area of
significant focus and investment and mental health training and
support is now embedded across the Group. We have trained around 90
Mental Health First Aiders who are present in each of our business
units, and discussion forums and drop-in sessions have been
introduced.
We are committed to increasing our number of apprentices and
trainees. We currently have a total of 130 across the Group and
have a programme established to appoint around 100 additional
trainees, spread equally across our 23 business units this
year.
We have recently completed our Peakon engagement survey which is
sent to all employees and are pleased to report a further
improvement in the Group score to 8.1, up from 7.9 in January and
compares to an industry benchmark of 7.6.
High quality land acquisition
The Group has had a successful six months in the land market
increasing the size of its overall landbank. Housebuilding secured
4,143 plots across 20 developments in the period and has excellent
visibility on land, with 100% 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 period, Partnerships has secured 1,499 plots on
8 sites for mixed tenure development and has 98% of land required
for forecast FY22 mixed tenure completions secured.
Strategic land is a key source of land for both Housebuilding
and Partnerships and with our combined business model we are able
to maximise the benefits and returns from this valuable asset,
particularly on larger strategic sites. In the period, we secured
options over 4,660 strategic land plots across 6 developments and
have a strong pipeline.
Balance sheet and liquidity
The strong first half performance is mirrored in an improved
cashflow, and the Group's net cash position of c. GBP32m as at 30
June 2021 is significantly ahead of our expectations at the
beginning of the year, reflecting the strong trading period and
ongoing robust working capital management. We expect Group
month-end average net debt for FY21 to be less than GBP150m and to
deliver a strong year on year improvement in our 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 for the
Group and we will provide the details of this with our half year
results in September.
Outlook
We continue to see strong demand across all areas of the
business, our sites are operating well, and the strategic benefits
of the enlarged Group are starting to be realised.
With a strong first half performance the Group is well
positioned for the full year and is confident it will deliver
consensus market expectations(2) for FY21 and maintains its
expectations for FY22.
Housebuilding remains on track to deliver a significant step-up
in completions to c. 6,500 units, and an improvement in adjusted
gross margin to c. 22% in FY21. Partnerships expects to deliver
significant growth in higher margin mixed tenure completions in
FY21, driving margin progression and is firmly on track to meet its
FY22 targets of GBP1bn revenue and an adjusted operating margin of
10% plus.
C ompletions H1 21 H1 20
-------------------------------- ------ ------
Housebuilding
* Private 1,853 830
* Private JVs (100%) 441 145
* Affordable 669 236
* Affordable JVs (100%) 163 24
Total Housebuilding 3,126 1,235
Partnerships
* Mixed tenure 408 299
* Mixed tenure JVs (100%) 487 190
Total Mixed Tenure 895 489
Forward sales (GBPm) 30 June 2021 30 June 2020
-------------------------------- ------------- -------------
Housebuilding
* Private 621 660
* Private JVs (100%) 239 178
* Affordable 485 330
* Affordable JVs (100%) 111 96
Total Housebuilding 1,456 1,264
Partnerships
* Mixed tenure 200 178
* Mixed tenure JVs (100%) 191 215
Total Mixed tenure 391 393
Total Development 1,847 1,657
Total Partner delivery 890 920
Total Group 2,737 2,577
-------------------------------- ------------- -------------
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] Pro forma Vistry Group sales rate
[2] Bloomberg consensus (6 July 2021) FY21 adjusted profit
before tax: GBP329m
[3] Including share of JV completions
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
TSTRFMBTMTIMTPB
(END) Dow Jones Newswires
July 07, 2021 02:00 ET (06:00 GMT)
Grafico Azioni Vistry (LSE:VTY)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Vistry (LSE:VTY)
Storico
Da Set 2023 a Set 2024