Greg Fitzgerald, Chief Executive commented:

“The Group has delivered a strong half year performance with Vistry’s Partnerships model significantly outperforming the traditional housebuilding market. The Group’s growth strategy and greater delivery of affordable housing is well aligned to the new Government’s ambitions to address the country’s housing crisis, and uniquely positions Vistry to play a key role in delivering the Government’s new housing targets.

“We have traded well over the summer months, and with positive momentum across the business are on track to deliver more than 18,000 completions in FY24, and a year-on-year increase in profits.

“We remain confident on delivering our medium-term targets of a 40% ROCE and £800m of adjusted operating profit. In addition, since the strategy update 12 months ago, I’m pleased that the Group has now announced or returned £285m of the targeted £1bn capital return to shareholders over three years.”

 

Highlights

• Total completions increased by 9% in the first half to 7,792 (H1 23: 7,143) units, driven by good demand across our Partner Funded markets
• Adjusted operating profit increased by 10% to £227.3m (H1 23: £206.7m) in the period, with an adjusted operating margin of 11.5% (H1 23: 11.6%)
• New land development opportunities were secured in-line with the Group’s high growth strategy, with a total of 8,225 (H1 23: 6,866) mixed tenure plots across 32 developments secured in the first half
• The Group continues to invest in its future capability including land, people, skilled labour and timber frame manufacturing, as well as drive build and cost efficiency across the business, maximising the benefits from its scale and certainty of revenues
• Group net debt position of £322.0m as at 30 June 2024 (30 June 2023: £328.6m), lower than prior year despite the year end 31 December 2023 net debt position being £207m higher than the prior year

Uniquely positioned to play key role in housing delivery

• Addressing the country’s acute housing crisis is at the centre of the new Government’s plans, with the re-introduction of housing targets that would see affordable housing supply more than double
• We are encouraged by the direction of the Government’s policy changes and anticipate that the Autumn Statement will include further initiatives, particularly around funding
• Vistry’s unrivalled capability and track record in partnerships housing delivery, uniquely positions us to play a key role in delivering the Government’s targets
• The Group has the existing capacity, capability and momentum to deliver strong growth in mixed tenure housing in the near term

Current trading and outlook

• Encouraging sales performance through typically quieter summer months
• On track to deliver strong growth in total completions in FY24 to in excess of 18,000 (FY23: 16,118) units, and full year profits ahead of last year
• This is underpinned by the Group’s strong forward sales position totalling £5.1bn (2023: £4.3bn), up 19% on the prior year, with the Group 91% forward sold for FY24
• The Group continues to target a year end net cash position as at 31 December 2024

Capital allocation

• The Group remains committed to returning £1bn of capital to shareholders within three years through a combination of ordinary and special distributions
• In line with the Group’s capital allocation policy of a two times adjusted earnings distribution cover, the Group announces a further ordinary distribution via share buyback of £55m in respect of the H1 24 adjusted earnings
• Reflecting the progress made with our strategy to date and further progress expected in the remainder of the year, we are additionally announcing a first special distribution of £75m, also via share buyback
• The combined share buyback of £130m will commence this month and is expected to be completed by our AGM in May 2025
• Since the strategy update 12 months ago, the Group has returned or announced distributions totalling £285m of the targeted £1bn capital return to shareholders

There will be an investor and analyst presentation at 8:30am today at Deutsche Numis, 45 Gresham St, London EC2V 7BF. There will also be a live webcast of this event available on our corporate website at www.vistrygroup.co.uk or via the following link https://brrmedia.news/VTY_HY24

A playback facility will be available shortly afterwards.

Certain statements in this press release are, or may be deemed to be, forward looking statements. Forward looking statements involve evaluating a number of risks, uncertainties or assumptions, many of which are beyond the Group’s control, 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. Forward looking statements speak only as at the date of this document and the Group and its directors and officers expressly disclaim any obligation or undertaking to release any update of, or revisions to, any forward looking statement herein.