VISTRY GROUP PLC
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ANNUAL REPORT AND ACCOUNTS 2024
ANNUAL REPORT AND
ACCOUNTS 2024
VISTRY GROUP PLC
Vistry Group PLC
2024 HIGHLIGHTS
Adjusted measures
In addition to the IFRS (reported) measures disclosed throughout the Annual Report and Accounts, the Group uses certain
non-IFRS alternative performance (adjusted) measures to assess the operational performance of the Group. Definitions of
the adjusted measures and the reconciliations to the reported measures are detailed on pages 34 to 37.
Prior year restatement
The 2023 comparative figures have been restated to correct the error that arose as a result of the cost forecasting issues in
the South Division.
Further details are included on pages 174 to 175.
Adjusted revenue
£4,329.2m
(2023: £4,042.1m)
Adjusted
operating profit
£358.2m
(2023 restated: £476.1m)
Adjusted profit
before tax
£263.5m
(2023 restated: £407.3m)
Adjusted basic
earnings per share
55.9p
(2023 restated: 85.8p)
Revenue
£3,779.3m
(2023: £3,564.2m)
Operating
profit
£167.0m
(2023 restated: £300.0m)
Profit
before tax
£104.9m
(2023 restated: £293.0m)
Basic earnings
per share
22.0p
(2023 restated: 62.1p)
Completions
17,225
(2023: 16,118)
Owned and
controlled plots
74,020
(2023: 76,434)
HBF customer
satisfaction score
5-star
(2023: 5-star)
Return on capital
employed (ROCE)
14.6%
(2023 restated: 20.9%)
REPORTING
We hope you enjoy reading this Annual Report
and Accounts. To make it easier for you to use and
to find more information, please look out for the
following references for further reading.
Sherford is a flagship development for Vistry which
will deliver 5,500 new homes across six phases as
part of a new town on the edge of Plymouth. Vistry
is a member of the Sherford Consortium, working
in partnership with Clarion Housing, Live West and
Plymouth Community Homes.
Annual Report and Accounts 2024
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CONTENTS
2024 HIGHLIGHTS
STRATEGIC REPORT
Our Group at a glance 2
Chair’s statement (inc. Section 172(1) Statement) 4
Chief Executive’s review
6
Market environment 14
Business model and strategy 18
Key performance indicators 21
Financial review
24
Providing clarity to the users of the Annual Report
and Accounts
34
Sustainability report 38
Task Force on Climate-Related Financial Disclosures (TCFD) 59
Non-financial and sustainability information statement 66
Risk management 68
Our principal risks 70
Viability and going concern statements 76
GOVERNANCE REPORT
Chair's governance letter to shareholders 80
Governance at a glance 82
Corporate governance statement 83
Board of Directors 84
Board leadership and Company purpose 86
Our stakeholders and engagement 98
Division of responsibilities 102
Composition, succession and evaluation 103
Nomination Committee report 108
Audit Committee report 112
Remuneration Committee report 122
Directors' remuneration report 126
Remuneration policy 143
Directors' report 150
Directors' responsibilities statement 154
FINANCIAL STATEMENTS
Independent auditors' report 156
Group statement of profit or loss and other
comprehensive income
168
Group and Company statement of financial position 169
Group statement of changes in equity 170
Company statement of changes in equity 171
Group and Company statement of cash flows 172
Notes to the financial statements 173
OTHER INFORMATION
Five-year record 223
Shareholder information 224
Glossary 225
Inside
cover
The above image and the cover image are of Sherford, Plymouth
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Page number reference
See pages 18 to 21
Website page:
vistrygroup.co.uk/strategy.
REFERENCE ICONS
For further information about our strategy:
See pages 18 to 21.
For further information about our strategy:
vistrygroup.co.uk/strategy.
OUR GROUP AT A GLANCE
Our mixed tenure Partnerships model delivers high quality affordable, private rented and
private for sale new homes, uniquely aligning Vistry with the country’s acute housing needs.
On our developments we pre-sell a minimum of 50% of our new homes to our partners
including registered providers, local authorities and private rented sector providers.
Through our leading consumer brands, Bovis Homes, Linden Homes and Countryside Homes,
we sell quality new homes to private buyers.
We invest in an owned, controlled and strategic landbank of high quality development
opportunities that support the Group’s future housing delivery.
We pride ourselves on building excellence, on driving forward future homes standards, and
delivering the highest level of customer satisfaction.
Vistry Works, our three timber frame factories, are at the core of our operational and
sustainability strategy.
Our Partnerships approach means we can build new homes faster, drive efficiency, and
deliver a higher return on capital employed.
A LEADING HOMEBUILDER, DEVELOPING IN PARTNERSHIP
At Vistry, our purpose as a responsible developer is to work in Partnership
to deliver sustainable homes, communities and social value, leaving a
lasting legacy of places people love.
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Vistry Group PLC
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Annual Report and Accounts 2024
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Doing the right thing is at the core of Vistry’s
ethos as we endeavour to do the right thing for
our partners, our customers, our people and our
shareholders across all aspects of our operations.
We live our shared values of Integrity, Caring
and Quality, instilling them into all aspects
of our day to day activities.
OUR ETHOS AND VALUES
17k+ homes
delivered
in 2024
Delivering
1 in every 6
new affordable
homes
c. 4,600
direct
employees
350+ active
developments
5-star HBF
Customer
Satisfaction
rating for sixth
consecutive year
3 timber frame
manufacturing
factories
26 regional
business units
Working with
140+ partners
3 leading
consumer
brands
74K+
owned and
controlled
land plots
9 Skills
Academies
We are focused on a returns-based model, and are targeting
a 40% return on capital employed and a 12%+ adjusted
operating margin in the medium term.
Our highly valued partners are critical to the work we do, and
on behalf of the Board, I would like to thank them for their
support during 2024. We look forward to continuing to build on
these relationships and develop new ones during 2025.
RESPONSIBLE DEVELOPER
Vistry is a responsible developer with a strong social purpose.
Working in partnership, the Group is committed to delivering
sustainable new homes and communities where people love
to live.
The health and safety of our people is paramount and I am
pleased to report that we have seen further improvements
across our Safety, Health and Environmental performance levels
in the year. Our Accident Incident Rate (AIR) sat well below the
industry benchmark at the end of 2024 at 210, compared to the
HSE industry average of 341.
In 2024, the Group generated £118m of local and social
economic value, and as a leading provider of affordable
homes, delivered one in six of the country’s affordable homes.
We completed more than 700 zero carbon ready (regulated
energy) homes and have a clear plan to reduce our future
carbon emissions across the Group.
Training and people development remain a key priority and
in 2024, we opened four new Vistry Skills Academies and
delivered 1,907 training weeks.
Biodiversity and minimising the negative impact of our
operations on the local ecosystems are very important to us.
We are continually introducing new initiatives, and as an
example, every Vistry development must now have a bird-
nesting brick or box installed for every new home built, as
well as hedgehog highways as standard.
GOVERNANCE
I have held the combined role of Executive Chair and CEO
since the 2024 Annual General Meeting held in May. The Board
acknowledges the requirement of the Corporate Governance
Code to keep these roles separate, and the decision to
combine these roles was taken after much consideration
and is believed to be in the best interests of the Group at
this time.
In May 2024, Rob Woodward was appointed as a Non-Executive
Director and Senior Independent Director of the Group.
Rob has taken on enhanced responsibilities in this role, which
the Chair would ordinarily carry out.
An independent Board Performance Review was conducted
between July and October 2024.
Further details on this and other Board changes during
the year are included in the Chair’s governance letter to
shareholders on pages 80 to 81.
CHAIR'S STATEMENT
DEAR SHAREHOLDER,
2024 was a challenging year for Vistry Group. Cost forecasting
issues arising in our South Division and a greater level of
market uncertainty led to the Group’s full year profits being
significantly below our expectations at the start of the year.
The Group responded quickly to these challenges and
implemented changes to the divisional structure at the
year end. Importantly, the three Divisional Executive Chairs
appointed, all have strong Partnerships backgrounds.
There have also been changes at the Executive Leadership
level with the removal of the Chief Operating Officer role,
resulting in reduced reporting lines and allowing me to have
greater proximity to the business. As a result, Earl Sibley
left the Group at the end of the year. We thank Earl for his
significant contribution and commitment to Vistry over the
past seven years.
Following both an independent review and an in-depth
internal review process of the issues arising in the South
Division, we have implemented new requirements around
processes and controls across the Group.
Further details of these reviews are on pages 113 to 114.
BUILDING IN PARTNERSHIP
The Group remains confident in its Partnerships strategy
and continues to see a huge opportunity for the
development of mixed tenure housing across the UK.
The Group is targeting average revenue growth of 5% to 8% p.a.
in the medium return and has the capacity within its existing
infrastructure to deliver more than 20,000 units each year.
GREG FITZGERALD
Executive Chair and CEO
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Vistry Group PLC
CAPITAL ALLOCATION
The Board has reviewed its capital allocation policy and
maintaining a strong balance sheet remains the top priority.
With indebtedness higher than expected in 2024, the Group’s
priority in FY25 is cash generation and the reduction of
net borrowings. The Group will continue to invest in new land
and development opportunities during 2025 to replenish its
Partnerships landbank in line with its growth forecasts.
The Group will complete the £55m ordinary distribution
in respect of the H1 24 adjusted earnings and the £75m
special distribution, both announced in September 2024,
via share buyback. Given the poor financial performance in
2024 and the prioritising of balance sheet strength, the Group
is not proposing any final ordinary distribution in respect
of the 2024 adjusted earnings. Future ordinary distributions
will be considered by the Board, and communicated to
shareholders, in due course
Further details on capital allocation are on page 12.
SECTION 172(1) STATEMENT
The Board of Directors, both collectively and individually,
confirm that during the year under review, it has acted to
promote the long-term success of the Company for the
benefit of its members as a whole and other stakeholders.
The Board understands all of its duties under the Articles of
Association and those codified in law namely section 171 to
177 Companies Act 2006 and, in particular, has due regard to
the matters set out in section 172(1)(a) to (f) of the Companies
Act 2006 (Section 172(1)). This Section 172(1) statement
should be read in conjunction with pages 98 to 101 of the
Governance report.
LOOKING FORWARD
As a Board, we are committed to Vistry consolidating its
position as one of the country’s leading homebuilders.
The Group’s strong capability and track record of delivering
mixed tenure developments uniquely places us to work
alongside the Government and our partners to help address
the country's acute housing need. We are focused on ensuring
the Group operates effectively and efficiently and delivers
attractive returns to its shareholders.
GREG FITZGERALD
Executive Chair and CEO
25 March 2025
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WILTON GATE SKILLS ACADEMY
The Skills Academy in Salisbury opened in November
2024 and is affiliated with the Wilton Gate site in
our Bristol region and operates in partnership with
Building Heroes.
The academy delivers a comprehensive five-week
training programme designed to equip learners with
essential construction skills. The curriculum includes
a Level 1 City & Guilds in Construction, a Level 1
Award in Health & Safety, and the CSCS Green Card.
The academy can train up to 75 learners each year,
and, as our third Building Heroes academy, highlights
our ongoing commitment to supporting armed forces
personnel in transitioning into successful careers
within the construction industry.
ZERO CARBON READY HOMES
Gwel Bassett, Tolgus, Cornwall consists of 185 zero-
carbon ready (regulated energy) homes built to
support Cornwall Council affordable homes provision.
They all have an EPC A rating and are built using
timber frame and feature air source heat pumps
with underfloor heating, central mechanical extract
ventilation and solar PV panels. The development
also includes well designed green public spaces, new
planting, and cycleways to connect with neighbouring
communities in a sustainable way.
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
2024 OVERVIEW
Vistry’s financial performance in 2024 was significantly
below our expectations at the start of the year, with the
Group reporting adjusted profit before tax of £263.5m
(2023 restated: £407.3m). The Group’s profitability in the year
was significantly reduced by cost forecasting issues in its
South Division, with the impact on 2024 adjusted profit before
tax totalling £91.5m. The performance was also impacted by
some delays to concluding agreements with our Partners and
other commercial transactions at the end of the year.
There has been an extensive review process across the Group
to fully understand the cost forecasting issues, with a clear
set of immediate priorities and actions for the business.
Organisational and leadership changes have also been
implemented to best position the Group going forward.
I want to thank all our employees and partners for their
hard work and commitment during what has been a
challenging period.
In the year, the Group delivered a 7% increase in total units
to 17,225 (2023: 16,118), confirming Vistry’s position as the
country’s largest homebuilder by volume, and adjusted
revenues increased by 7% to £4.3bn (2023: £4.0bn). The mix
of total units was 73% Partner Funded and 27% Open Market,
and the Group’s sales rate averaged 1.07 (2023: 0.96) sales per
site per week, up 11% on 2023.
As a responsible developer, we work in partnership to deliver
sustainable homes, communities and social value, leaving
a lasting legacy of places people love. We are supportive of
the Government’s ambitions to address the country’s acute
housing crisis, and the Group’s Partnerships model and mixed
tenure delivery, positions us well to help deliver a significant
step up in much needed new homes across the country, in
particular affordable homes.
The Government’s recent announcement of a £2 billion
injection of new affordable homes grant funding is very
positive, and alongside the £800m of top-up funding
previously announced, will drive investment momentum
across the affordable housing sector ahead of the launch of
the 2026 Affordable Homes Programme. As a strategic partner
to Homes England, Vistry will apply for an allocation of this
top-up affordable housing grant.
The Government has made good progress in addressing
the supply side initiatives to support a significant step up
in the delivery of new homes across the country, including
the restoration of mandatory housing targets, and changes
to the planning and infrastructure regulatory framework.
We are pleased to see the Government address the issue of
skills shortages within the construction industry through the
establishment of the Construction Skills Mission Board and
allocation of a £600m funding package, targeted to provide
training for 60,000 construction workers by 2029.
PARTNER FUNDED DEMAND
We saw a reasonable level of demand from our partners in
2024, signing more than 220 new agreements with over
70 partners including registered providers (RPs), local
authorities (LAs) and private rented sector (PRS) providers.
Partner Funded units increased by 18% in 2024 to 12,633
(2023: 10,722), demonstrating the resilience of the Partner
Funded market. Our Partner Funded ASP increased to
£236k (2023: £222k), reflecting changes in mix.
We saw a step up in demand from PRS providers in the year
with PRS sales representing 21% of total unit sales, up from
13% in 2023. S106 affordable housing represented 27% of total
units in 2024 (2023: 28%) and additional affordable was 25%
(2023: 26%) of total units.
The need to invest in the maintenance and remediation of
existing housing stock continued to impact the demand for
new housing from some traditional RPs, particularly in London
in the year, and we worked closely with our partners to ensure
Vistry remains their partner of choice for their new housing
investment. For profit registered providers are less impacted
by these issues and continued to be a growth subsector of
this market.
Demand from affordable housing partners slowed somewhat
in Q3 2024 ahead of the outcome of the Autumn Budget at
the end of October. Whilst the additional £500m affordable
housing grant announced with this budget, and the further
£300m announced in February 2025 were positively received,
ongoing uncertainty around the timing and quantum of future
Government funding for affordable housing, led to subdued
levels of partner demand in Q4 2024 and Q1 2025.
OPEN MARKET DEMAND
Open Market sales decreased by 15% to 4,592 (2023: 5,396)
units in 2024, with our Open Market sales performance in the
year below our expectations at the start of 2024.
CHIEF EXECUTIVE'S REVIEW
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Vistry Group PLC
The expected interest rate cuts during 2024 did not
materialise, and the open market remained constrained
reflecting ongoing mortgage affordability challenges,
particularly for first time buyers. The Group’s Open Market
average sales price remained firm at £385k (2023: £390k),
with our Open Market sales programme supported with
incentives of up to c. 5% of the Open Market sales price.
FORECAST COST ISSUES WITHIN THE
GROUP’S SOUTH DIVISION
On 8 October 2024, the Group reported it had become
aware of the underestimation of the total full-life cost
projections to complete several of its developments in its
South Division. The South Division was one of the Group’s six
divisions and consisted of four regional business units.
The issues were predominantly on developments which
formed part of the Group’s former Housebuilding business
and where there was also a high concentration of former
Housebuilding management.
Group management acted promptly and an extensive
programme of independent and internal reviews was
initiated to verify the nature and scope of the issues,
confirm the impact, and determine any resultant
actions required. Changes to the Division’s management
team were also implemented.
The independent review was carried out over four weeks by
the forensics team of a large accounting firm and reported
to the Chair of the Audit Committee. The scope of the review
was primarily focused on the cost reporting process, culture
and management in the South Division. It also included a
wider review across the Group to ascertain if similar issues
existed in other parts of the business.
In addition to the work undertaken by the independent
reviews, additional internal investigations and review
processes were conducted which included deep-dive
reviews of all four regions in the South Division, mandated
detailed Cost Value Reconciliations (CVRs), and balance
sheet reviews for all other regions.
The reviews concluded that the significant issues were
found to be confined to the South Division and were
attributed to insufficient management capability, non-
compliant commercial forecasting processes and poor
divisional culture. The management team of the South
Division and the four regional businesses were all from the
Group’s former Housebuilding business and the independent
review highlighted pressure being felt from organisational
change as a fundamental driver underlying the issues in the
South Division. The independent review found little evidence
of similar issues to those identified in the South Division in
other divisions.
A total of 18 sites in the South Division required adjustments
to their full-life costs of more than £1m, with five large,
multi-phase sites accounting for 60% of the full-life
costs movements. The understated costs in the CVRs
were found to be from a wide range of cost types and
symptomatic of general control issues, rather than any one
particular cost type. The issues in the South Division resulted
in a total of £165m of costs adjustments including a £91.5m
impact to adjusted profit before tax in 2024 and a £53m
impact in future years.
EXECUTIVE LEADERSHIP TEAM (ELT)
The Group operates through its Board of Directors with
day-to-day management and operation delegated to the
Chief Executive Officer (CEO) and the ELT. The CEO leads,
and is a member of, the ELT.
ELT biographies are available at www.vistrygroup.co.uk/
about-us/leadership/executive-leadership-team.
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1. GREG FITZGERALD
Executive Chair & Chief
Executive Officer
3. CLARE BATES
Chief People Officer &
General Counsel
5. STEPHEN TEAGLE
CEO Partnerships &
Regeneration
7. JAMES WARRINGTON
Executive Chair- North,
South Midlands & East
2. TIM LAWLOR
Chief Financial Officer
4. MICHAEL STIRROP
Chief Commercial Officer
6. MIKE WOOLLISCROFT
Chief Strategy Officer
8. ADAM DANIELS
Executive Chair- Yorkshire,
North Midlands & West
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2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
In addition, there were a number of small value adjustments
from the detailed CVR and other reviews carried out across
the other 22 regions, which in aggregate resulted in a
reduction to the Group’s adjusted profit before tax in
2024 of £8m.
The management team and Board considered the findings
of all the review work performed and outlined actions to
address the issues and enhance the control environment
across the Group. Below is an update on each.
Leadership and structure – With a focus on reducing the
length of reporting lines and ensuring closer proximity of the
CEO to the business, the Chief Operating Officer role was
removed from the organisational structure. In addition, the
Group’s divisional structure has been consolidated from six
divisions into three divisions, each with an Executive Chair
with extensive Partnerships experience reporting to the CEO.
The four regional businesses in the former South Division
have been separated across two of the three new divisions,
with two regional businesses in each. Our priority is to
establish strength and breadth of management excellence in
each, and we are making progress.
Commercial assurance – Vistry has carried out a root and
branch review of its commercial procedures and controls to
ensure opportunities for further cost reporting inaccuracies
does not exist. Some changes were implemented and
became effective from January. Assurance is provided by
regional, divisional and Group participation in monthly cost
and value reviews for all live projects.
The Executive Leadership Team (“ELT”) met with each
regional board during January 2025 and set out expectations
for standardisation and adherence to policy and procedure.
The implementation of the changes to the Life of Site
processes are being closely monitored, and internal audit will
be reviewing compliance across the business during the year.
Training and support – Training of Vistry colleagues that
contribute to the commercial management of projects has
taken place and support is provided on a monthly basis
through additional expertise attending each site cost and
value review.
Culture and whistle-blowing – A new Vistry Culture Book
was launched in the second half of the year, which
presented and promoted behaviours to help all employees
act in line with our purpose, ethos and values. Internal
communications have been issued which reemphasised
the importance of our ethos of ‘Do the Right Thing’ along
with our ‘Speak Up’ service, enabling our people to report
on any concerns confidentially. The ELT has worked with
our leadership teams across the business to ensure we are
creating psychologically safe working environments
where employees can raise concerns that are dealt
with constructively. More in depth culture and behaviour
sessions are being rolled out across the business.
BUILD AND VISTRY WORKS
The Group operated from an average of 367 (2023: c. 350)
build outlets during 2024 which included 203 (2023: 223)
active sales outlets. Build outlets includes sites which are
not currently selling to the Open Market either because
Open Market sales are yet to commence or have already
been completed, and sites which are 100% Partner Funded
and therefore have no Open Market sales.
Overall, the Group saw good availability of build materials
during 2024. The Group secures c.90% of its materials
centrally through its highly experienced group commercial
team, with supply contracts typically for 12 to 24 months.
The Group managed to mitigate underlying build cost
inflation in 2024 through its benefits of scale, visibility of
revenues and efficiency gains, resulting in neutral build cost
inflation for the Group in the year. We are starting to see
some build cost pressure and whilst we will continue to
mitigate this where possible, the Group is expecting low
single digit build cost inflation in 2025.
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Vistry Group PLC
Strawberry Grange, Bridgwater
CHIEF EXECUTIVE'S REVIEW
continued
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Timber frame construction is at the core of Vistry’s
operational and sustainability strategy. Compared to
traditional brick and block construction, timber frame
enables a faster build time of approximately six weeks
and is shown to reduce embodied carbon by c. 30% over
a 60-year timeframe. The increased use of timber frame
will also reduce the Group’s dependency on labour over
the medium term.
The Group’s operations manufactured 2,900 timber frame
units in 2024 (2023: 2,500) and floor joists for 2,650 units.
The manufacture of roof trusses was added to the
production line towards the end of the year. The Group
expects to increase this output in 2025 to 4,000 to 5,000
timber frame units, floor joists for c. 5,000 units and roof
trusses for c. 6,000 units.
We are increasing annual capacity from our existing three
facilities to between 10,000 to 12,000 timber frame units,
roof trusses for 10,000 units and floor joists for 6,000 units
in 2026 and beyond.
With the new Vistry placemaking and plotting guidance in
place to ensure the places we create remain characterful,
attractive places people love, the Group has been working
hard on standardising product and the new Vistry Collection
of 60 standard house types. This product standardisation
will drive manufacturing efficiencies.
SECURING HIGH QUALITY
PARTNERSHIP OPPORTUNITIES
During 2024, the Group secured a strong pipeline of
attractive new land and development opportunities totalling
16,508 (2023: 15,288) mixed tenure units across 62 sites.
The Group is well positioned to secure land through both
public procurement and the purchase of private land.
In the year, 35% of the land plots secured were from public
land sources and 61% from the private market.
Strategic land is an important source of development
opportunities and the Group’s strategic land bank totalled
76,219 plots (31 December 2023: 70,780) as at 31 December
2024. With a more favourable planning environment, the
Group expects to increase the pull through from its strategic
landbank over the medium term.
The Government has continued to reform the planning
system with updates to the National Planning Policy
Framework (NPPF) in December 2024 and corresponding
updates to the Planning Policy Guidance (PPG) at the
same time and early this year. These changes are generally
more permissive and positive towards development and
reintroduce targets, with decisions more in favour of
permitting sustainable development.
The Group is well positioned for land in 2025 with c. 95% of
the land secured for targeted 2025 completions.
HIGH QUALITY HOUSING
Delivering high quality homes and excellent customer
service is paramount and we expect the Group to be
awarded a 5-star HBF Customer Satisfaction rating for
the sixth consecutive year in 2025. The Group’s
HBF 8-week Customer Satisfaction score for 2024 was
94.5% (2023: 91.6%), with the 9-month score increasing
to 83.6% (2023: 78.3%).
Vistry employees were awarded more than 70 quality
awards during 2024, including 42 NHBC Pride in the Job
awards, 13 Premier Guarantee awards and 8 LABC awards.
The Group’s Construction Quality Review score averaged
4.5 (2023: 4.5) in 2024, with the Average Reportable Items
per inspection at 0.20 (2023: 0.21).
Monument View, Wellington
Annual Report and Accounts 2024
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OUR PEOPLE
Our people strategy is focused on attracting, retaining
and developing the best people. We were pleased to see
an increase in our Peakon employee engagement score in
November to 8.2 (November 2023: 7.6 and June 2024: 8.1),
0.5 ahead of the Peakon benchmark. Voluntary turnover has
remained low at 15.4% at the year-end (Dec 2023: 15.9%)
and our stability index (employees with over one year
service) has increased from 78.1% in December 2023 to
82.3% in December 2024.
For the third year running, we received our Top Employer
certification through the Top Employer Institute, increasing
our overall score by 3.1% to 94.6% (January 2023: 84.5% and
January 2024: 91.5%), 9.6% ahead of the TEI benchmark.
We also achieved fifth position in the top 50 Inspiring
Workplaces of UK and Ireland (Global position: 64),
with well-being and employee voice recognised as the
strongest elements.
We continue to develop our people through our leadership
development programmes and 132 employees completed
a programme during 2024. This number includes 45
females completing our externally run Women in
Leadership programme which consists of three sessions
with an external coach and access to an internal mentor.
In November 2024, we were proud to retain our
gold accreditation membership with the 5% Club.
This recognises our significant contribution to the
continued development of all our employees through
Earn & Learn schemes such as apprenticeships, graduate
schemes and sponsored student course placements.
In 2024, we welcomed 17 new RISE Trainees and 26 new
graduates to our 2024/25 cohorts. The RISE trainees will
follow a Level 4 higher apprenticeship before advancing
to a degree apprenticeship, and the graduates will follow
one of four career pathways: Construction, Commercial,
Design & Technical, and Real Estate. In addition, we have
supported over 200 learners through formal qualifications
which include existing employees enhancing their skills
though apprenticeships, professional qualifications and
other educational sponsorship.
HEALTH AND SAFETY
In July 2023, we changed how we measure Safety, Health
and Environmental (SHE) performance across our premises
and sites. The objective was to improve the behavioural
culture and drive continued improvement to reduce work-
related injuries. The metrics used to score performance
became more stringent and gave us better trend analysis.
We are proud to report that improvements continue to
manifest across our sites, and we are currently reporting
performance levels that far exceedthe Group’s targets.
Our Accident Incident Rate (AIR) demonstrates our
commitment to continually improving standards across our
sites and we do everything we can to mitigate or at least
reduce work-related injury. In line with previous years, it still
sat well below the industry benchmark at the end of 2024
at 210, compared to the HSE industry average (341).
Damage to buried utility services remains an industry
challenge and we continue to work closely with our peers
via the Home Builders Federation (HBF) to seek new
technology and initiatives to reduce the risk of injury.
Our service strike incident rate was 342 at the end of 2024
compared to 349 at the end of 2023, which showed a slight
improvement. We remain committed to working with our
people to adopt better and safer practices leading to a
future reduction.
Timber Frame - The Pavillions, Kenilworth, Nottingham
10
|
Vistry Group PLC
BUILDING SAFETY
The Group’s building safety provision recognises the Group’s
commitment to playing its part in delivering a lasting industry
solution to building safety and the Group’s obligations under
the Developer Remediation Contract signed by Vistry in
March 2023.
Over the past six months, management has re-evaluated the
appropriate level of building safety provision. As a result, the
Group has increased its building safety provision by £117.1m
in 2024, with a total provision of £324.4m as at 31 December
2024 (31 December 2023: £289.0m). We expect the net annual
cash costs of Building Safety in 2025 to be c. £65m.
This increase reflects a rise in third party claims due to the
implementation of regulatory changes, which has broadened
the types of issues that are now considered a risk to occupant
safety, as well as an increase in the historical time period
for which the developer has a responsibility. The Group has
identified an additional 41 buildings requiring remediation.
In addition, there has been an increase in the costs of
remediating buildings resulting from increased scope of
work and some cost inflation. The Group continues to seek
recoveries from third parties where possible and recovered
£27.2m in 2024.
CMA INQUIRY
On 26 February 2024, the CMA launched an investigation
into suspected breaches of competition law, relating to the
exchange of competitively sensitive information by eight
housebuilders, including Vistry. On 10 January 2025, the CMA
announced that its investigation would be extended by five
months to May 2025 to allow further investigation including
additional evidence gathering and CMA analysis and review.
The CMA has not reached a view as to whether there is
sufficient evidence of an infringement or infringements of
competition law for it to issue a statement of objections to
any party under investigation. We continue to co-operate with
the CMA in their investigation and evidence gathering process.
INDEBTEDNESS
The Group had a net debt position of £180.7m as at 31
December 2024 (31 December 2023: £88.8m). This compares
to our expectation at the start of the year of a net cash
position, the difference reflecting the reduced profit
performance of the Group in the year and a build-up of
working capital and stock. The Group’s average daily net debt
in 2024 was £698.1m (2023: £586.0m).
The Group had significant headroom against its borrowing
covenants (Gearing, Tangible Net Worth and Interest Cover) in
the year, and maintained a comfortable amount of headroom
against its borrowing facilities, which total £1,130m.
CHIEF EXECUTIVE'S REVIEW
continued
Rivers Edge, Warrington
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Annual Report and Accounts 2024
|
11
Through our focus on cash generation, we are targeting a
steady reduction in the Group’s average net borrowings
through 2025, a year-on-year reduction in the Group’s net
debt as at 31 December 2025 and a net cash position as at
31 December 2026.
PRIORITIES FOR 2025
The Group has a clear set of priorities for 2025 focused
on ensuring Vistry is best positioned to drive the business
forward in the medium term.
Cash generation – the Group had higher than expected
working capital levels at the end of last year reflecting a
slower Open Market sales rate in 2024 and a resulting build
up in stock. The Group is targeting releasing excess stock
and WIP of c. £200m in 2025 and work in progress controls
linked to site stock positions have been introduced and are
monitored weekly at an Executive level.
The housebuilding landbank release has been slower than
anticipated reflecting more constrained market conditions
than expected. Site by site strategies are being reviewed
and options including bulk sales and discounting are under
consideration to accelerate the roll-off and cash generation.
Embed leadership – a new divisional structure was
introduced at the start of 2025, moving from six divisions
to three. Each division is led by an Executive Chair with
extensive Partnerships experience who sits on the
Executive Leadership Team and reports directly to the CEO.
This structure has reduced layers and shortened reporting
lines, creating greater transparency and agility in decision
making. There will be some savings resulting from headcount
reduction across the business actioned in Q1 2025.
Standardise and enhance control environment – the
Group updated its life of site process in H2 2024, ensuring
standardisation across all regions. This has been followed up
with a clear message of compliance to all regions which will
continue to be closely monitored throughout the year.
In addition, incremental commercial expertise has been
embedded into the process through the appointment
of Commercial Directors at a Divisional level, and the
appointment of Commercial Compliance Managers within
the Group Commercial team.
A new Investment Committee has been launched
which oversees the approval of land acquisitions and
disposals, partner agreements, and other investment and
commercial decisions.
CAPITAL ALLOCATION
The Board has reviewed its capital allocation policy and its
view on capital allocation hierarchy remains unchanged.
Maintaining a strong balance sheet remains is the top priority
and improving cash generation and reducing the Group’s net
borrowings is the Group’s focus for 2025.
Investing in our Partnerships business to deliver sustainable
growth and maximise the significant market opportunity
we see over the medium term is the most attractive use
of capital and the business has and continues to invest in,
high-quality development opportunities which replenish the
Partnerships land bank in Iine with its growth forecasts.
In September 2024, the Group announced a total capital
distribution of £130m comprising a £55m ordinary
distribution in respect of the H1 2024 earnings and a £75m
as a special distribution. The Group has completed £38m to
date and expects to complete the remaining £92m via share
buyback, to be concluded in H1 2026.
Watermark, Maidenhead, Vistry West London
12
|
Vistry Group PLC
CHIEF EXECUTIVE'S REVIEW
continued
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Reflecting the performance in 2024, the Group is not
proposing any final ordinary distribution in respect of the
2024 adjusted earnings. Future distributions will be made in
accordance with Group’s capital allocation policy.
BOARD CHANGES
The Company announces that Helen Owers has informed
the Board of her intention to resign her position as an
independent Non-Executive Director. Helen will remain
on the Board until the earlier of an appointment of a
replacement independent Non-Executive director or by the
end of 2025. A further announcement concerning the date of
Helen’s resignation will be made as soon as it is decided.
This announcement is made pursuant to Listing Rule 6.4.6R.
CURRENT TRADING AND FY25 OUTLOOK
The Group’s forward order book totals £4.4bn (14 March
2024: £4.6bn), with 65% (2024: 65%) of forecast 2025
units secured. The Group sales rate of 0.59 (2024: 0.81) sales
per site per week for the year to date is down on prior year
reflecting a low volume of Partner Funded transactions in
the first quarter.
The Group’s Partnership model is closely aligned to the
Government’s housing ambitions and we are working closely
with our partners to ensure we are well positioned to deliver.
Following the Government’s recent announcement of an
additional £2bn of affordable housing funding to the existing
affordable homes programme, we expect Partner Funded
activity to step-up during the year, resulting in a greater H2
weighting of Partner Funded delivery for the Group in 2025.
Overall, we are expecting our Partner Funded volumes in
2025 to be at a similar level to 2024, with strong momentum
going into 2026.
In the Open Market, we have seen some uptick in our
sales in the past four weeks and expect this to continue
to improve. Whilst our sales outlets will continue to reduce
as we roll-off former Housebuilding sites, we expect to
maintain Open Market volumes at a similar level to
2024 in 2025.
We are seeing some upward pressure on build costs and
whilst we will continue to try and mitigate this where
possible, we expect to see low single digit build cost
inflation in 2025
The Group continues to expect to make year-on-year
progress in profit in 2025, with profits being more H2
weighted than in prior years. H1 margins will reflect a greater
proportion of delivery from lower margin sites, and some
impact on profit from actions being taken to accelerate
cash generation. We expect H2 margin recovery to be driven
by the commencement of new higher margin developments
and the benefit of operating leverage from higher volumes in
the second half.
The Group’s focus on cash performance, including the
management of work in progress and the reduction of
the housebuilding landbank, is expected to result in a
year-on-year reduction in the Group’s net debt as at
31 December 2025.
STRATEGY AND MEDIUM
-
TERM OUTLOOK
The Group remains confident in its Partnerships strategy and
committed to its capital light, high returns business model.
There remains an acute need for affordable and mixed
tenure housing across the country. Addressing this housing
crisis sits at the heart of the Government’s agenda, with new
housing targets set last autumn aiming to more than double
the supply of affordable homes nationwide and continue
growth of the private rental sector.
With its capability and track record in Partnership housing
and mixed tenure delivery, Vistry is uniquely positioned
to play a key role in supporting the Government to deliver
its plans.
Over the medium term, the Group expects to see a strong
increase in demand for mixed tenure housing driven by both
a step up in Partner investment supported by Government
policy, and a recovery in the Open Market.
Whilst volumes in 2025 are expected to be similar to 2024,
the Group is targeting average revenue growth of 5% to
8% p.a. over the medium term, driven by an increase in
unit delivery. Vistry retains a national operational footprint
and will continue to evolve operational capacity and
capability to suit local demand and market conditions.
The Group is focused on a returns-based model and is
targeting a 40% return on capital employed. The roll-off
of the former Housebuilding landbank will be a key
driver of the improvement in the Group ROCE. The Group
is targeting an adjusted operating margin of 12%+
which reflects a blended site margin across its mixed
tenure delivery. The Group’s land acquisition hurdle rates
at a 40% ROCE and 12% adjusted operating margin are
aligned to these targets.
GREG FITZGERALD
Executive Chair and CEO
25 March 2025
Annual Report and Accounts 2024
|
13
14
|
Vistry Group PLC
MARKET ENVIRONMENT
We are a leading player in the UK housebuilding industry which is impacted by a
number of economic, social and regulatory trends, as discussed below.
DEMAND CONTINUES TO OUTSTRIP SUPPLY
There is a chronic shortage of new homes in the UK -
the undersupply is greatest for affordable housing.
• The new Government’s target recognises this acute housing shortage and aims to
deliver >1.5m new homes by the end of the parliament.
• This target is significantly higher than the current level of delivery which was 221k net
additional dwellings in the 12 months to March 2024 (2023: 234,290)
1
.
• The undersupply is greatest for affordable housing where it is estimated that 187k
affordable homes are required each year
2
which compares to the 62k new affordable
homes delivered in the 12 months to March 2024 (2023: 63,822)
3
.
• The number of households on local authority housing registers (waiting lists) increased
by 3% to 1.33m
4
as at 31 March 2024; the highest number since 2014.
• It is estimated there were c. 354k homeless people on a given night in 2024, which is
one in 160 people in the UK
5
. This social and financial crisis needs to be addressed
through increasing the supply of genuinely affordable housing, particularly for
social rent.
• Due to the affordability challenges of people buying private homes and the lack of
affordable housing, more people are looking to the private rented sector. This is driving
a huge increase in the need for this sector, with a recent report
6
showing an increase
of 800k to one million additional Private Rented Sector (PRS) households across the
country by 2031.
VISTRY'S RESPONSE
• Vistry is the only large home builder that builds mixed tenure developments
and has the scale and capability to significantly increase output, especially
affordable housing.
• Our Partnerships model is fully embedded across our business and we have unrivalled
strategic relationships with our partners. This enables Vistry to provide a mixed tenure
housing solution including affordable, PRS and private housing.
• As a strategic partner to Homes England, we have direct access to current and future
affordable housing grant funding. We use this to work with local authorities and
registered providers to deliver much needed affordable housing.
• We are working with our registered provider partners to establish long-term
investment frameworks, increasing the supply of affordable housing we jointly deliver.
• Vistry is the largest builder of Single Family Housing for PRS in England. We will
continue to engage with multi-family PRS providers, particularly in London and other
urban centres, where mid to high-rise construction is appropriate and where demand
for this product is strong.
Estimated that
1 in 160
people in the UK
are homeless
Local Authority
waiting lists
increased by 3% to
1.33m
4
as at 31 March 2024
Government
targeting
>1.5m
new homes
Vistry's Partnerships
model delivers
mixed tenure
housing
Vistry's strategic
partnership with
Homes England
gives access to
affordable housing
grant funding
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Annual Report and Accounts 2024
|
15
ECONOMIC ENVIRONMENT
POLITICAL ENVIRONMENT
The housing market is cyclical – interest rate cuts in
2025 are expected to stimulate demand.
• The UK residential property market's performance is linked to the strength of the UK
economy and wider global macroeconomic conditions.
• The sharp increase in borrowing costs in the UK and the high inflationary environment
over the past three years has impacted household incomes and savings, and as a result
affordability and overall demand for private housing.
• Entering 2024, it was widely expected there would be multiple cuts in interest rates in
the year. This did not materialise, with only two 0.25% rate cuts in H2 2024.
• Further interest rate cuts are expected in 2025 which is expected to improve mortgage
affordability and stimulate demand for private housing.
The Government's ambition is to build 1.5m new homes
over the course of this parliament.
• The Government's new housing targets put the country’s housing shortage crisis in
the spotlight.
• Recent changes to the National Planning Policy Framework provides the industry with
a more favourable regulatory environment to harness in 2025 and beyond.
• The Autumn Budget included £500m of additional funding provided for the Affordable
Homes Programme and confirmed a long-term rent settlement for housing providers.
A further £350m of top-up funding was announced in February 2025.
• The Planning and Infrastructure Bill, introduced to Parliament in March 2025, provides
more opportunities to simplify the planning system.
VISTRY'S RESPONSE
• Vistry’s Partnerships model provides some resilience to the cyclical housing market.
• Our target of 65% of homes presold to our partners across the Group’s portfolio of
sites mitigates some of the sales risk inherent within the macroeconomic environment.
The revenue on these pre-sold units is secured at the start of the project and is
typically paid monthly as the build progress takes place.
• The remaining 35% of homes p.a. is delivered through Open Market sales to private
individuals. This revenue, which has higher associated profit margins, is more
susceptible to economic risk.
VISTRY'S RESPONSE
• Vistry’s Partnerships model is closely aligned to the Government’s ambition to solve
the housing crisis.
• Since the General Election, we have held several high-profile stakeholder meetings
with ministers and officials in the Treasury, Ministry for Housing, Communities and
Local Government, and No.10.
• We are looking for the Government to commit meaningful investment in the new
funding programme for affordable homes in 2025 to accelerate the supply of housing,
provide certainty to the supply chain and support economic growth.
Increased
borrowing
costs have impacted
demand for housing
Interest rate cuts
in 2025 are
expected to
stimulate demand
Vistry’s Partnerships
model provides some
resilience to
market
cyclicality
The housing crisis
is at the forefront
of the Government's
agenda
Planning reforms
being made
should stimulate
housing supply
Vistry's operating
model is closely
aligned with the
Government’s
ambitions
16
|
Vistry Group PLC
THE PLANNING SYSTEM
The Government has placed great importance on the
delivery of new homes through unlocking the
planning system.
• Before commencing development work, Vistry must obtain planning permission and
discharge conditions. Securing timely planning permission on an economically viable
basis is key to our value creation process.
• Planning delays are common, reflecting continued capacity issues within local planning
authorities and continued political uncertainty.
• The Government has placed great importance on unlocking the planning system
and an update to the National Planning Policy Framework (NPPF) was published in
December 2024.
• The Government has committed to increasing planning fees, which helps to ensure
local planning authorities are adequately resourced, as well as provide funding for
more planning officers.
VISTRY'S RESPONSE
• Vistry has a leading capability in securing land and planning and brownfield
redevelopment and regeneration.
• We have healthy consented and strategic land banks and only purchase new land that
meets our specific land buying criteria.
• We welcome the amendments to the NPPF and look forward to working with councils
to deliver more homes.
• We continue to engage with the HBF and other organisations, including the Land,
Planning and Development Federation, The Housing Forum and Royal Town Planning
Institute, to try to speed up the planning process.
• Moreover, we are working pro-actively with the Future Homes Hub to ensure that the
industry is ready to adapt to change.
• We are well placed to support the Government’s aspiration to maximise
brownfield development.
• We promote our wider sustainability strategy recognising that the range of benefits
that development can bring to a community is important in securing local support
for proposals.
1 GOV.UK, Accredited official statistics: Housing supply: net additional dwellings, England: 2023-24 and 2022-23.
2 Bramley, G: Housing supply requirements across Great Britain for low-income households and homeless people. Research for Crisis and the
National Housing Federation, Main Technical Report, Heriot-Watt University (2019).
3 GOV.UK, Accredited official statistics: Affordable housing supply in England: 2023-24 and 2022-23.
4 GOV.UK, Accredited official statistics: Social housing lettings in England, tenants: April 2023 to March 2024.
5 Shelter: Homelessness in England in 2024.
6 Savills Research: The Future of Built to Rent Houses, January 2024.
Unlocking the
planning system
is critical
The planning system
is complex and
planning delays
are common
V
istry has a
leading capability
in securing land
and planning
We will work
with councils
to deliver
more homes
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Annual Report and Accounts 2024
|
17
MARKET ENVIRONMENT
continued
MATERIAL AND LABOUR COSTS
FAST CHANGING REGULATORY ENVIRONMENT AND FUTURE HOMES STANDARD
The market continues to see some underlying
inflationary pressure on input costs.
• There remains inflationary pressure on input costs, albeit at lower levels than seen in
the preceding couple of years.
• Despite constrained levels of output across the industry reflecting lower levels of
demand, in particular for private homes, we continue to see skills shortages. We
expect this to become a larger issue and potentially a constraint on industry growth,
as industry output increases in the future.
Increasing regulatory requirements including Future
Homes and buildings standards.
• The Future Homes Standard requires new homes to achieve c. 80% lower CO2
emissions than the Part L 2013 baseline.
• Regulatory issues are impacting land availability, including challenges created by
nutrient neutrality and the interpretation of the Habitat Regulations.
• Biodiversity net gain is mandated by the Environment Act 2021 and is now a
requirement in all planning applications.
VISTRY'S RESPONSE
• We work closely and proactively with our supply chain partners to best manage our
supply chain needs.
• Our suppliers are key stakeholders in our business and through our highly experienced
centralised procurement function, we proactively work with them to best manage
our supply chain needs. As a Group, more than 90% of our build materials are
procured centrally.
• Our Partnerships model allows us to offer greater security and continuity of work to
our supply chain partners, resulting in a competitive advantage to the Group.
• To manage the fixed revenue nature of our Partnership agreements, we include a
sensible level of cost contingency and/or fixed price allowances in our agreements.
• Through our skills academies, Vistry is investing in training and developing skilled
construction workers. The Group currently has nine Skills Academies located at
developments across the country.
VISTRY'S RESPONSE
• Vistry works with its partners to be at the forefront of regulatory change and innovation.
• Sustainability is core to our purpose and we have a clear roadmap to deliver zero carbon
ready homes.
• We have responded to the Government’s consultation for the Future Homes Standard
and are applying the knowledge and experience gained from live schemes which are
already delivering an 80% CO2 reduction compared to current standards, to help us
achieve our stretching carbon reduction targets, and prepare for regulatory change.
• We continue to test new technologies to help deliver zero carbon ready homes at scale,
and share our learning to the wider industry through the Future Homes Hub.
• Biodiversity net gain requirements have been introduced into our life of site process to
ensure compliance with the new regulations.
Skills shortages
need to be
addressed
We work
closely
and proactively
with our supply
chain partners
Vistry’s Skills
Academies
provide essential
training
Future Homes
Standard requires
80% lower
CO2 emissions
Vistry has a clear
roadmap to delivering
zero carbon
ready homes
18
|
Vistry Group PLC
Highly skilled and
diverse people
Experienced
leadership team
Competitive
advantage in the
land market
Place making and
regeneration skills
Long-standing
trusted partner
relationships
Timber frame
manufacturing
capability
Strong track record
of delivery
Scaleable
operating
structure
Multiple leading
brands
BUSINESS MODEL AND STRATEGY
Our purpose is to work in partnership to deliver sustainable homes, communities and
social value, leaving a lasting legacy of places people love.
OUR STAKEHOLDERS
Please see details of our Stakeholders and how we engage with them on pages 98 to 101.
OUR CAPABILITY AND RESOURCES
CREATE VALUE
We leverage our unique blend of capability and resources to maximise the opportunity
to generate sustainable value for all of our stakeholders
PARTNERS
SUPPLY CHAIN
REGULATORSCOMMUNITIES INVESTORS
CUSTOMERS
PEOPLE
Annual Report and Accounts 2024
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19
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Our Partnerships approach underpins how we operate. We work with more than
140 partners including registered providers, local authorities, and private rented
sector providers, with all our developments providing a mix of housing tenures.
HOW OUR PARTNERSHIP BUSINESS WORKS
Our Partner Funded sales provide certainty of revenue and demand timely delivery. This allows us to build at
pace and drive build efficiency, resulting in a lower cost of production.
Our Partnerships model is not constrained by an Open Market sales rate and as a result can deliver c. 150% of
the output of the traditional housebuilding model.
Our partners will typically purchase the land plots associated with their units as we enter into a partner
agreement and will fund the construction of these units as the work progresses on site. This drives a more
capital light business and a higher return on capital.
Registered Providers, Local Authorities, PRS Providers
S106 Affordable Additional Affordable
PARTNER FUNDED
OPEN MARKET
Average Partner Funded (units)
Minimum Partner Funded (units)
50% 65%
Markets
Tenures
Brands
Customers
PRS Private ownership
Private buyers
PARTNER FUNDED HOMES
On each Partnership development, we pre-sell a
minimum of 50% of the homes to one or several
of our partners; our Partner Funded units.
On average, across our portfolio of more than
350 developments, we are targeting c. 65% of
the units to be Partner Funded sales.
Our Partner Funded homes consist of a range
of tenures, including S106 affordable housing,
additional affordable housing, which may include
tenures such as shared ownership and discounted
homes, and PRS units. The average sales price of
our Partner Funded homes was £236k in 2024.
OPEN MARKET HOMES
We also sell homes to individuals for private
ownerships; our Open Market sales, which
had an average sales price of £385k in 2024.
We target c. 35% of the units across our portfolio
of developments to be Open Market sales.
Our model differs from traditional
housebuilding where the developer sells
c. 75% of the homes to the Open Market,
with c. 25% of homes affordable, as required
by planning consent and typically sold to a
Registered Provider.
20
|
Vistry Group PLC
TALENTED PEOPLE
Our highly skilled and diverse workforce
is one of our most critical resources
and differentiators. We will continue to
create an inclusive environment where all
our people can thrive, develop and excel.
This will enable us to attract, develop
and retain the best people.
WORKING IN PARTNERSHIP
To maximise the significant growth
opportunity within the partnerships market,
our business will be closely aligned with the
needs of our existing and future partners
to position us as the partner of choice.
Consistent delivery across multiple tenures
with flexibility in procurement routes, will
enable us to expand the number of
partners that we work with and deepen
those relationships.
INCREASING OUTPUT
Increasing the number of new homes
we deliver will drive our revenue growth
and returns. Our Partner Funded sales
provide strong forward visibility, allowing
us to maximise our build rate through
standardisation of product and processes,
centralised procurement and greater use
of timber frame manufacturing. These will
enable us to step up our output whilst
maintaining quality of build and high
standards of health and safety.
BUILDING SUSTAINABLY
Creating sustainable homes, vibrant
communities, and delivering lasting
social value is at the core of our operations,
and we will continue to succeed by placing
people and communities at the heart of our
decision-making processes. We will ensure
we meet all Future Homes Standards and
remain at the forefront of innovation and
housing solutions.
LAND PROCUREMENT
Our Partnerships model enables us to
operate with a shorter land bank than
traditional housebuilders and we are
targeting a reduction in our land bank
length. The Group will need to secure
a significant amount of land to meet its
growth ambitions and will utilise the
competitive advantage that our model
brings including a lower margin hurdle,
strong relationships with public land
owners, and our track record of delivery.
CAPITAL EFFICIENCY
Our model is returns based and achieving
an industry leading ROCE is a key priority.
Our Partner Funded sales, which make
up c. 65% of our total unit sales, are
significantly more capital efficient than
Open Market sales. Our partners typically
acquire their share of the land at the
beginning of the project and fund the build
in stages as work progresses. Maintaining a
shorter land bank with a greater proportion
of controlled land will also drive return
on capital.
OUR STRATEGIC PRIORITIES
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21
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Monument View, Wellington
EMPLOYEE
ENGAGEMENT SCORE
VOLUNTARY TURNOVER HBF 8-WEEK
TARGET
2024
2023
2022
2021
8.2
7.6
8.6
8.1
>8.0
TARGET
2024
2023
2022
2021
15.9%
<17.0%
15.4%
17.7%
21.0%
TARGET
2024
2023
2022
2021
5-st ar
5-st ar
5-st ar
5-st ar
5-st ar
WHY WE MEASURE IT
Our strategy is to attract, develop
and retain the best people.
Changes in this metric provide us
with valuable feedback from our
people on the areas in which we
are doing well and the areas where
we can improve
.
WHY WE MEASURE IT
Our strategy is to attract, develop
and retain the best people.
Some turnover is expected and
healthy, but a sustained increase
above target would indicate
that action may be required to
improve retention.
WHY WE MEASURE IT
This metric is a measure of
customer satisfaction 8 weeks after
buying a home and is important
to give confidence to future
customers of the quality of our
homes and customer service.
LINK TO STRATEGY LINK TO STRATEGY LINK TO STRATEGY
HBF 9-MONTH AIR SSIR
TARGET
2024
2023
2022
2021
83.6%
78.3%
79.0%
79.0%
>70.0%
TARGET
2024
2023
2022
2021
175
219
240
210
<341
TARGET
2024
2023
2022
2021
349
454
462
342
Lower than prior year
WHY WE MEASURE IT
This metric is a measure of
customer satisfaction 9 months
after buying a home and is
important to give confidence to
future customers of the quality of
our homes and customer service .
WHY WE MEASURE IT
The safety of people on our sites
is critical and we strive to maintain
excellent standards. This metric
records the number of reportable
accidents per 100,000 workers
on site.
WHY WE MEASURE IT
The safety of people on our
sites is critical and we strive to
maintain excellent standards.
This metric records the number
of service strike incidents per
100,000 workers on site.
LINK TO STRATEGY LINK TO STRATEGY LINK TO STRATEGY
These KPIs should be read in conjunction with pages 34 to 37 where we provide further information relating to the
calculations for KPIs.
NON-FINANCIAL KPIs
KEY PERFORMANCE INDICATORS
22
|
Vistry Group PLC
NEW HOME
COMPLETIONS
NHBC
REPORTABLE ITEMS
NHBC CQR
TARGET
2024
2023
2022
2021
16,118
11,951
11,080
17,225
Growth on prior year
TARGET
2024
2023
2022
2021
0.21
0.23
0.22
0.20
<0.26
4.5
4.5
TARGET
2024
2023
2022
2021
4.5
4.5
>4.0
WHY WE MEASURE IT
To achieve our strategy for growth
and to be the leading provider of
affordable homes in the UK, we
are seeking to increase the total
number of homes and the number
of affordable homes that we
deliver each year.
WHY WE MEASURE IT
To achieve our strategy, we
must deliver homes at pace
whilst maintaining quality.
This is important to maintain our
reputation, minimise customer
care issues and control our cost
of production.
WHY WE MEASURE IT
To achieve our strategy, we
must deliver homes at pace
whilst maintaining quality.
This is important to maintain our
reputation, minimise customer
care issues and control our cost
of production.
LINK TO STRATEGY LINK TO STRATEGY LINK TO STRATEGY
LAND & DEVELOPMENT
OPPORTUNITIES
SECURED
GHG EMISSIONS
(SCOPE 1 AND 2) tCO2e
NON-HAZARDOUS
CONSTRUCTION WASTE
DIVERTED FROM LANDFILL
TARGET
2024
2023
2022
2021
16,508
15,288
16,315
11,798
Growth in line with unit delivery
TARGET
2024
2023
2022
2021
24,178
19,401
25,253
24,498
14,023
TARGET
2024
2023
2022
2021
97%
98%
98%
98%
>99%
WHY WE MEASURE IT
To achieve sustained growth,
we need to secure sufficient new
land and other development
opportunities each year to replace
what is utilised in the same period
through new home completions.
WHY WE MEASURE IT
To achieve our purpose of
delivering sustainable homes and
communities, we are targeting to
be a net zero organisation by 2040.
WHY WE MEASURE IT
To achieve our purpose of
delivering sustainable homes and
communities, we must challenge
ourselves to continually reduce
the environmental impact of the
materials we use in our operations.
LINK TO STRATEGY LINK TO STRATEGY LINK TO STRATEGY
WORKING IN
PARTNERSHIP
STRATEGIC PRIORITIES:
INCREASING
OUTPUT
LAND
PROCUREMENT
TALENTED
PEOPLE
BUILDING
SUSTAINABLY
CAPITAL
EFFICIENCY
NON-FINANCIAL KPIs
See the Strategic Priorities on page 20
Annual Report and Accounts 2024
|
23
ADJUSTED
REVENUE GROWTH
ADJUSTED
OPERATING MARGIN
ADJUSTED EPS
14%
32%
30%
7%
TARGET
2024
2023
2022
2021
5-8%
14.5%
11.8%
13.7%
TARGET
2024
2023
1
2022
2021
8.3%
12%
137.5p
85.8p
125.5p
TARGET
2024
2023
1
2022
2021
55.9p
Growth on prior year
WHY WE MEASURE IT
We are targeting year-on-year
growth in revenue, driven by
increased delivery of new homes.
WHY WE MEASURE IT
We are targeting to increase our
operating margin to 12.0% in the
medium term.
WHY WE MEASURE IT
We are targeting a year-on-year
increase in the returns generated
for shareholders.
ROCE
FORWARD
ORDER BOOK
25.0%
20.9%
25.5%
14.6%
40%
TARGET
2024
2023
1
2022
2021
£4.0bn
£4.5bn
TARGET
2024
2023
2022
2021
£4.4bn
£3.0bn
Growth on prior year
WHY WE MEASURE IT
We are targeting to increase ROCE
to 40% in the medium term.
WHY WE MEASURE IT
We are targeting to increase the
forward order book year-on-year
to support growth and visibility of
future revenue.
FINANCIAL KPIs
These KPIs should be read in
conjunction with pages 34 to
37 where we provide further
information relating to the
calculations for KPIs.
1
The 2023 comparative figures have been
restated to correct the error that arose as
a result of the cost forecasting issues in the
South Division. Further details are included
on pages 174 to 175.
KEY PERFORMANCE INDICATORS
continued
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
GROUP PERFORMANCE
£m 2024
2023
restated
2
Change
Adjusted basis
1
Completions 17,225 16,118 +7%
Revenue 4,329.2 4,042.1 +7%
Operating profit 358.2 476.1 -25%
Operating margin 8.3% 11.8% -3.5ppts
Net financing expense (94.7) (68.8) -38%
Profit before tax 263.5 407.3 -35%
Profit after tax 188.9 296.9 -36%
Basic earnings per share (pence per share) 55.9p 85.8p -35%
Net debt (180.7) (88.8) -103%
Average capital employed 2,461.8 2,275.1 +8%
Return on capital employed (%) 14.6% 20.9% -6.3ppts
Reported basis
Revenue 3,779.3 3,564.2 +6%
Operating profit 167.0 300.0 -44%
Profit before tax 104.9 293.0 -64%
Basic earnings per share (pence per share) 22.0p 62.1p -65%
1
Figures are shown on an adjusted basis. See Alternative Performance Measures section on pages 34 to 37 for further details.
2
The results for 2023 have been restated to correct the prior year error that arose due to the cost forecasting issue in the South Division.
See note 1 on page 174 for further details.
FINANCIAL REVIEW
24
|
Vistry Group PLC
GROUP PERFORMANCE
The result for the year was disappointing. The Group delivered growth
in revenue and completions, however, market conditions continued
to be challenging, particularly for Open Market sales, and the cost
forecasting issues that were identified in our South Division in the last
quarter of the year significantly impacted adjusted and reported profit
before tax.
Group management reacted quickly to thoroughly investigate the
underlying causes of the cost forecasting issues, to ensure they were
isolated to the South Division and to make all necessary changes and
improvements to remediate them. The investigations concluded that
the issues could be attributed to insufficient management capability
and poor culture in the South Division, and non-compliance with the
Group’s established commercial forecasting processes.
In response, the Group has changed its divisional structures and
removed the COO role to reduce the length of reporting lines
between the CEO and our regional businesses. The Group also
introduced additional controls to ensure mandated processes were
correctly followed for the year-end and in future. Further details on
the investigations and consideration of the accounting treatment of
the changes in estimates and errors are on pages 174 to 175.
The 2023 full-year results have been restated, reducing adjusted and
reported profit before tax by £11.8m and opening reserves by £6.2m.
The results for the 2024 half-year will be restated when the Group
announces its results for the 2025 half-year. This will reduce adjusted
and reported profit before tax in the 2024 half year by c. £65m.
The increase in the cost of building safety remediation impacted
reported profit before tax. The Group experienced a rise in the
number of claims during the second half of the year as well as higher
costs on existing buildings, primarily driven by scope increases.
TIM LAWLOR
Chief Financial Officer
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
REVENUE AND COMPLETIONS
On an adjusted basis, total revenue increased by 7% to £4,329.2m (2023: £4,042.1m), with a particularly strong increase in Partner
Funded revenue of 24%. We saw good levels of demand from the Partner Funded market and secured more than 220 new
partner deals with over 70 partners. The number of Partner Funded completions increased by 18% to 12,633 (2023: 10,722), driven
by PRS and Additional Affordable homes. The average selling price of Partner Funded homes increased by 6% to £236k (2023:
£222k), primarily due to PRS completions including a greater proportion of larger, higher value homes than in the prior year.
Open Market revenue reduced by 16%, with a reduction in the number of completions of 15% to 4,592 (2023: 5,396) due to
subdued demand throughout the year, primarily reflecting mortgage affordability and a much lower opening forward order
book of £298m (2023: £610m). The Group operated from fewer sales outlets, with the average number down 9% to 203
(2023: 223). Discounts offered to investors purchasing multiple completed homes and changes in the geographic mix resulted
in a slight decrease of 1% in the average selling price to £385k (2023: £390k). Sales incentives remained at up to 5% of the Open
Market sales price.
On a reported basis, total revenue increased by 6% to £3,779.3m (2023: £3,564.2m). The total number of completed homes
delivered also increased by 7% to 17,225 (2023: 16,118), with the overall average selling price broadly consistent with the prior
year at £275k (2023: £276k). The disparity between the strong growth in the Partner Funded market and the subdued demand
for Open Market homes resulted in an increase in the proportion of total completions which were Partner Funded to 73%
(2023: 67%). We expect this percentage to trend back towards our target of 65% in future years when activity levels for Open
Market homes begin to improve.
2024 2023
£m unless otherwise stated Partner Funded Open Market Other revenue Total Total
Adjusted revenue 2,636.2 1,488.2 204.8 4,329.2 4,042.1
Add: Government grant income 39.9 22.2 - 62.1 40.4
Remove: other non-housing revenue - - (204.8) (204.8) (137.6)
Total sales price 2,676.1 1,510.4 - 4,186.5 3,944.9
Total units (at 100%) 12,633 4,592 n/a 17,225 16,118
Less: joint venture eliminations (1,311) (669) n/a (1,980) (1,836)
Units for calculation of the Average Selling Price 11,322 3,923 n/a 15,245 14,282
Average Selling Price £236k £385k n/a £275k £276k
Proportion of total units by type 73% 27% n/a 100% 100%
OPERATING MARGIN
The Group managed to mitigate underlying build cost inflation in 2024 through its benefits of scale, visibility of revenues and
efficiency gains, resulting in neutral build cost inflation for the Group in the year. We are starting to see some build cost pressure
and whilst we will continue to mitigate this where possible, the Group is expecting single digit build cost inflation in 2025.
The average number of build outlets increased over the course of the year to 367 (2023: c. 350).
The cost forecasting issues in the South Division related to increases in the total full-life cost projections for a relatively small
number of sites, including some large and complex, multi-phase schemes. There were a range of factors that led to these
increases including, procurement losses where tender returns for certain packages came in higher than anticipated, operational
changes on sites, additional costs due to unexpected ground conditions and asbestos contamination on specific sites,
subcontractor failures and design changes for certain aspects of schemes. The cost increases were due to site-specific factors
and were not indicative of a more general inflationary trend. In some instances, the cost increases led to the need to impair
inventories, resulting in the full future loss on those schemes being recognised in the current year.
Administrative expenses, excluding exceptional items, reduced by 19% to £196.1m (2023: £241.5m). Headcount was lower
throughout 2024 following the simplification of the Group’s operating structures that completed in late 2023. Bonus and
share-based payment costs were reduced due to profit targets not being achieved in 2024.
Annual Report and Accounts 2024
|
25
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
26
|
Vistry Group PLC
The Group’s adjusted operating profit for the year was down 25% to £358.2m (2023: £476.1m), with the adjusted operating margin
down 3.5ppts to 8.3% (2023: 11.8%). The Group’s adjusted operating margin has reduced as the Group continued to transition
the higher margin, capital intensive landbank from the Group’s former Housebuilding business to the lower margin, capital
light Partnerships model. This reduction is consistent with our expectations at the time of outlining our strategy. In the year the
Group delivered an above-target proportion of Partner Funded completions, 73% compared to our target of 65%, due to market
conditions. The cost forecasting issues in the South Division accounted for a further 2.1ppts deterioration in 2024 and will have
an ongoing, but reducing, drag on margin in 2025 and 2026 as the impacted sites are completed and traded out.
Reported operating profit reduced by 44% to £167.0m (2023: £300.0m). The decrease was greater than for adjusted operating
profit as a result of the increase in exceptional items in 2024, of which £99.9m (2023: £46.2m) was within operating profit.
BUILDING SAFETY
£m
2024 2023
Building safety provision:
Additions (117.1) (11.7)
Releases 20.9 18.6
Discount unwind (8.0) (19.4)
Building safety provision recognised in joint venture (20.9) -
Building safety recoveries 27.2 11.7
Building safety related impairment (16.8) (18.5)
Total building safety expense (114.7) (19.3)
The cost of building safety rose to £114.7m (2023: £19.3m) as the Group increased its provision for remediation and recognised a
further impairment of inventories.
The Group’s building safety provision at the beginning of the year was £289.0m. This increased by £117.1m, reflecting an increase
of 41 buildings following the completion of assessment of claims which were received subsequent to the implementation of a
number of regulatory changes. The regulatory changes have broadened the types of issues which are deemed to cause a risk
to occupant safety, as well as increasing the historical period for which the developer is responsible. In addition, the Group has
experienced some increase in tender prices and an expansion in the scope of works on some buildings where additional issues
were found during planned repairs.
During the year, one of the Group’s joint ventures agreed to take responsibility for completing remedial works on 10 buildings
that it developed and recognised a provision for the cost of these works. Accordingly, the Group released £20.9m that it had
previously recognised for its share of those works. There was no net profit impact in the year, however the joint venture now
holds the provision and it is no longer included in the Group’s provision.
The Group utilised £68.8m of the provision during the year, continuing to make good progress with the remediation works.
Work completed on 28 buildings during the year, with work ongoing for a further 43 buildings. At year end, we were engaged in
the pre-start phase of the remediation process with 197 buildings, excluding the 10 buildings which will be remediated by one of
the Group’s joint ventures. The Group continued to manage remediation work through its specialist in-house team.
After discount unwind of £8.0m, the closing building safety provision as at 31 December 2024 was £324.4m.
£m
2024
Opening 289.0
Additions 117.1
Utilised in year (68.8)
Released as obligation transferred to joint venture (20.9)
Discount unwind 8.0
Closing 324.4
At 31 December, the number of buildings where work was ongoing or yet to commence on site increased to 240 (2023: 237).
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Annual Report and Accounts 2024
|
27
The Group has continued to seek to recover costs from third parties where possible and was successful in recovering £27.2m
during the year, which was recognised as an exceptional credit within cost of sales. Future recoveries will only be recognised
when they are secured.
In the prior year, the Group recognised an impairment of inventories of £18.5m due to viability challenges on schemes
which are now required to incorporate second staircases in high-rise buildings, leading to increased costs and a loss of
saleable floorspace.
During 2024, the Group continued to assess the impact of this regulatory change on those schemes through redesign, which
identified that the costs would be greater than previously expected. This led to an additional impairment of £16.8m.
EXCEPTIONAL ITEMS
Exceptional items increased to £128.8m (2023: £65.6m) comprising building safety of £114.7m (£19.3m), as described above, and
restructuring, integration and other costs of £14.1m (2023: £46.3m). Restructuring, integration and other costs were lower than in
the prior year and included changing the Group’s divisional structures in response to the issues in the South Division.
NET FINANCE EXPENSE
Adjusted net finance expense increased 38% to £94.7m (2023: £68.8m). Within this, net bank interest payable increased 33% to
£57.6m due to average borrowings rising by 19% year-on-year combined with an increase in the average interest rate that the
Group incurs on borrowings of 0.5ppts to 7.0% (2023: 6.5%) due to the rise in the average SONIA rate.
Land creditors due after more than one year are discounted on initial recognition using the market rate at that time, with this
discount subsequently unwound up to the date the creditor is settled. There is, therefore, a time lag before market interest rate
changes feed through into net financing expenses. The unwind grew in 2024 due to rising discount rates over the last two years.
£m
2024 2023 Change
Net bank interest payable (57.6) (43.4) -33%
Unwind of discount on land creditors (21.7) (11.5) -89%
Interest on finance leases (5.4) (5.5) +2%
Net interest on defined benefit pension schemes 1.6 1.7 -6%
Net joint venture interest payable (11.6) (10.1) -15%
Adjusted net finance expense (94.7) (68.8) -38%
PROFIT BEFORE TAX
Adjusted profit before tax was down 35% to £263.5m (2023: £407.3m) and reported profit before tax was down 64% to £104.9m
(2023: £293.0m).
TAX
The adjusted tax charge was £74.6m (2023: £110.4m), an effective tax rate of 28.3% (2023: 27.1%).
The reported tax charge was £30.4m (2023: £78.0m), an effective tax rate of 29.0% (2023: 26.6%). The reported rate was broadly
equal to corporation tax of 25% and Residential Property Developer Tax (RPDT) of 4%. The reported rate also includes a
reduction for some additional qualifying expenditure in respect of land remediation relief, and a reduction for profits not in
scope for RPDT, which both reduced the rate, offset by prior period adjustments.
The difference between the adjusted and reported effective rates is largely due to the presentation of a joint venture tax
credit. Under IFRS, the share of joint venture profits or losses after tax are included in profit before tax. In the Group’s adjusted
measures, the Group’s share of joint venture tax is included within the adjusted tax charge.
FINANCIAL REVIEW
continued
28
|
Vistry Group PLC
EARNINGS PER SHARE
Adjusted profit for the year reduced by 36% to £188.9m (2023: £296.9m), with adjusted earnings per share down by 35% to
55.9p (2023: 85.8p). The reduction in reported earnings per share of 65% to 22.0p (2023: 62.1p) was greater due to the impact of
exceptional items.
CAPITAL EMPLOYED AND ROCE
£m 2024
2023
restated
2
Change
Work in progress (including part exchange properties) 1,133.3 1,198.5 -5%
Land 1,875.0 1,881.7 -
Land creditors (739.9) (662.2) -12%
Net increase in inventories 2,268.4 2,418.0 -6%
Investment in joint ventures 614.0 562.7 +9%
Other assets 874.0 738.5 +18%
Other liabilities (1,243.5) (1,308.6) +5%
Capital employed 2,512.9 2,410.6 +4%
Building safety provision (324.4) (289.0) -12%
Retirement benefit asset 31.7 34.2 -7%
Tangible net assets 2,220.2 2,155.8 +3%
Goodwill 827.6 827.6 -
Intangible assets 368.8 409.3 -10%
Net debt (180.7) (88.8) -103%
Net assets 3,235.9 3,303.9 -2%
£m 2024
2023
restated
2
Change
Opening capital employed 2,410.6 2,139.5 +13%
Closing capital employed 2,512.9 2,410.6 +4%
Average capital employed 2,461.8 2,275.1 +8%
Closing capital employed increased by 4% to £2,512.9m (2023: £2,410.6m), with a slightly larger increase in the average capital
employed of 8% to £2,461.8m (2023: £2,275.1m).
The largest component of the Group’s capital employed is its net investment in inventories. There were several factors
contributing to a reduction in the closing balance.
Firstly, the Group recorded impairment write-offs of £61.2m, including those due to the cost forecasting issues in the South
Division and the exceptional building safety impairment of £16.8m.
Secondly, the Group established a new joint venture with the development arm of Clarion, Latimer, to develop 1,200 homes on
part of our site at Sherford, near Plymouth. The creation of this joint venture led to a transfer of £73.6m of work in progress from
the Group’s balance sheet.
Finally, land creditors increased by 12% to £739.9m (2023: £662.2m), in line with the Group’s strategy to buy sites on deferred
terms where acceptable conditions are available. Excluding all of these factors, the underlying position showed a build-up of
work in progress of £156.0m due to the slower-than-anticipated Open Market sales rate. Reducing this is a focus for the Group
moving into 2025.
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
FINANCIAL REVIEW
continued
Annual Report and Accounts 2024
|
29
The increase in capital employed was driven by Partner Funded receivables, which are included within other assets in the table
above, and ongoing investment into joint ventures. Partner Funded receivables include trade receivables, retentions and contract
assets (accrued revenue). These increased due to Partner Funded activity levels being higher in 2024 as the shift to a fully
Partnerships model took effect, particularly in the last quarter of the year. In addition, the Group completed on a large Partner
Funded contract in December 2023, which included a catch-up valuation on work completed to date which was cash settled at
the point of completing the contract. At the end of 2024, Partner Funded receivables reflect a more normal working capital cycle
for these types of contracts.
During 2024, the Group advanced more loans to joint ventures than were repaid during the year, a net increase of £75.2m, to
fund investment into land and work in progress within joint ventures. This included the new joint venture at Sherford.
ROCE reduced by 6.3ppts to 14.6%, mainly due to the lower adjusted profit for the year.
BUILDING SAFETY PROVISION
The Group’s building safety provision increased to £324.4m (2023: £289.0m) as described earlier in this review.
NET DEBT AND CASH FLOW
The Group’s opening net debt of £88.8m was £207.0m adverse to the previous year’s opening net cash of £118.2m. After an
outflow of £91.9m, which was substantially smaller than the outflow in the prior year of £207.0m, closing net debt was £180.7m
(2023: £88.8m). The average month-end net debt was higher at £534.2m (2023: £459.4m), with an average daily net debt of
£698.1m (2023: £586.0m).
Whilst adjusted profit before tax was down 35% on the prior year, cash conversion improved due to a substantially lower
working capital outflow of £91.5m (2023: outflow of £406.9m). In 2024, there was a cash benefit of £84.4m as spend on new
land was lower than the land utilised and there was an increase in land creditors. The main contributors to the working capital
outflow were the increase in Partner Funded receivables, described earlier in this review, which led to an outflow of £84.8m, as
well as a reduction in payables of £55.9m due to lower amounts of cash being received from customers in advance of work
being completed.
The Group continued to invest in its joint ventures, predominantly to fund land and work in progress across a growing number of
active joint ventures.
The net exceptional cash flows related to building safety increased to £36.8m in the year (2023: £33.3m) comprising a gross
spend of £58.8m (2023: £45.0m) less recoveries of £22.0m (2023: £11.7m). The cash flows differ from the profit or loss statement
due to working capital movements. After recoveries, net cash spend on building safety is expected to increase to c. £65m
in 2025.
Income tax paid of £11.3m was lower than in the prior year, with the quarterly instalment payments reflecting the lower taxable
profits, and was broadly in line with the current tax element of the total tax expense.
The net inflow before shareholder distributions was £80.7m (2023: net outflow of £91.3m). Shareholder distributions totalling
£172.6m were set in anticipation of profit for the year being higher than was achieved. This related to the 15.3m shares purchased
under the Group’s share buyback programmes. In 2023, the shareholder distributions comprised £110.4m of dividends and £5.3m
of shares repurchased under the first buyback programme, which was launched in December 2023.
The total available facilities as at 31 December 2024 were £1,080.0m (2023: £1,015.7m), of which £1,005.0m (2023: £1,015.7m) were
committed. Against these facilities, the Group had drawn £500.0m (2023: £506.7m) at the year end. During the year, the Group
agreed an additional facility of £75.0m with one of the Group’s existing lender pool, which is uncommitted and must be repaid at
each quarter end. In addition, subsequent to 31 December 2024, the Group has secured an additional £50m facility with another
lender from the Group’s existing lender pool. These uncommitted facilities are on-demand facilities with flexible borrowing
tenors to support the Group's short-term, in-month, borrowing requirements.
30
|
Vistry Group PLC
£m
2024
2023
restated
2
Change
Opening net debt (88.8) 118.2 n/a
Adjusted profit before tax 263.5 407.3 -35%
Working capital movements:
Land 6.7 (60.0) n/a
WIP (35.2) (226.1) +84%
Land creditors 77.7 (5.2) n/a
Receivables (84.8) (67.7) -25%
Payables (55.9) (47.9) -17%
Working capital outflow (91.5) (406.9) +78%
Net investment in joint ventures (28.9) (60.4) +52%
Exceptional building safety spend (net of recoveries) (36.8) (33.3) -11%
Restructuring, integration and other costs (14.3) (56.1) +75%
Taxation (11.3) (37.7) +70%
Cash inflow/(outflow) before shareholder distributions 80.7 (91.3) n/a
Shareholder distributions (172.6) (115.7) -49%
Net cash outflow (91.9) (207.0) +56%
Closing net debt (180.7) (88.8) -103%
Facility
£m
Available Maturity Margin 2024 2023
Revolving credit facility (500.0) 2026 SONIA + 1.6-2.5 ppts - -
Term loan (400.0) 2026 SONIA + 1.9-3.1 ppts (400.0) (400.0)
USPP loan
1
(100.0) 2027 4.03 ppts (103.7) (104.6)
Prepaid facility fee n/a n/a n/a 2.7 4.2
Development loan
2
- 2029 ECRR + 1.2-2.2 ppts - (6.7)
Money market facility (75.0) n/a SONIA plus margin
Overdraft facility (5.0) 2025 BoE Base + 1.5 ppts - -
Total borrowings (1,080.0) (501.0) (507.1)
Cash 320.3 418.3
Net debt (180.7) (88.8)
1
The carrying value of the USPP loan includes the fair value of future interest payments of £3.7m (2023: £4.6m) as the loan was acquired through a
historical acquisition. The drawings of £100.0m (2023: £100.0m) are equal to the total available facility.
2
The Homes England development loan is no longer included in the consolidated Group accounts as the borrower, Linden Homes (Sherford) LLP, is no
longer a subsidiary undertaking.
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
SHAREHOLDER DISTRIBUTIONS AND CAPITAL ALLOCATION POLICY
The Group has not changed its capital allocation policy during the year. An interim ordinary distribution in the form of a
share buyback of up to £55m was announced in September 2024 alongside a special buyback of up to £75m. The Group has
completed £38m to date and expects to complete the remaining £92m in the half year 2026.
Reflecting the disappointing performance in 2024, the Group is not proposing any final ordinary distribution in respect of the
2024 adjusted earnings. Future distributions will be made in accordance with Group’s capital allocation policy.
FORWARD ORDER BOOK
The forward order book as at 31 December was broadly stable at £4.4bn (2023: £4.5bn). The reduction in the Open Market
element was driven by the lower Open Market sales rate in the year's final three months.
£m
2024 2023
Open Market 285 298
Partner Funded 4,156 4,168
Total 4,441 4,466
LAND BANK
The land bank represents 4.4 years of supply (2023: 4.9 years). The Group’s Partner Funded business model supports a shorter
land bank than traditional housebuilding due to the faster pace of delivery on pre-sold sites and the lower proportion of Open
Market homes. Over the medium term, we expect the length of the land bank to reduce to less than 4.0 years of supply.
The Group added 14,432 plots to the land bank across 46 sites in the year, including 701 plots across three sites previously in the
strategic land bank. The proportion of the total plots that were controlled rather than owned at the end of the year increased
to 31% (2023: 27%). Over the medium term, we expect around one-third of the land bank to come from controlled rather than
owned sites, as controlled sites require only minimal upfront capital investment.
Number of plots
2024 2023
Owned (excluding joint ventures) 34,233 39,955
Owned - joint ventures (100%) 17,048 15,752
Total owned 51,281 55,707
Controlled (excluding joint ventures) 12,230 10,459
Controlled - joint ventures (100%) 10,509 10,268
Total controlled 22,739 20,727
Total 74,020 76,434
Annual Report and Accounts 2024
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31
FINANCIAL REVIEW
continued
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Vistry Group PLC
STRATEGIC LAND
Strategic land refers to land which does not yet have planning consent and which the Group is or will progress through planning
and promotional processes before development. Once we obtain planning consent, the land becomes consented. Strategic land
remains an essential supply source, and the number of plots increased by 8% during the year.
As at 31 December 2024
Total sites Total plots
0 – 150 plots 55 4,322
150 – 300 plots 53 10,930
300 – 500 plots 31 10,745
500 – 1,000 plots 21 13,425
1,000+ plots 22 36,797
Total 182 76,219
Planning agreed 17 5,855
Planning application 19 8,778
Ongoing application 146 61,586
Total 182 76,219
At 31 December 2023 185 70,780
Change -2% +8%
TIM LAWLOR
Chief Financial Officer
25 March 2025
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Monument View, Wellington
Fernleigh Park, Long Marston
Annual Report and Accounts 2024
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33
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Vistry Group PLC
ALTERNATIVE PERFORMANCE MEASURES
In addition to the IFRS (reported) measures disclosed throughout the Annual Report and Accounts, the Group uses certain non-IFRS
alternative performance (adjusted) measures to assess its operational performance. Adjusted measures are presented in order to
better reflect the contribution of the joint venture investments to the Group’s performance and to enable the reader to identify a
more consistent basis for comparing performance between financial years. They also reflect an important aspect of the way in which
operating targets are defined and performance is monitored by management.
ALTERNATIVE
PERFORMANCE MEASURE
DEFINITION
Adjusted revenue Statutory revenue plus the Group’s proportional share of joint ventures‘ revenue.
Adjusted operating profit Statutory operating profit excluding exceptional items and amortisation of acquired
intangible assets plus the Group’s proportional share of joint ventures’ operating profit.
Adjusted operating margin Adjusted operating profit divided by adjusted revenue.
Adjusted net finance expense Statutory net finance expense excluding exceptional items plus the Group’s proportional
share of joint ventures’ net finance expense.
Adjusted profit before tax
Statutory profit before tax excluding exceptional items, amortisation of acquired
intangible assets and the Group’s proportional share of joint ventures’ tax.
Adjusted income tax expense
Statutory income tax expense excluding the tax effect of exceptional items and
amortisation of acquired intangible assets, tax on joint ventures included in profit before
tax and the adjustment of one-off tax items.
Adjusted effective tax rate (ETR)
Adjusted ETR represents the underlying tax rate for the Group before the impact of one-
off tax items, and is defined as the statutory headline rate adjusted for Group’s liability to
Residential Property Developer Tax (RPDT).
Adjusted basic earnings
per share (EPS)
Adjusted profit before tax less adjusted income tax expense, divided by the weighted
average number of ordinary shares for the year.
Net debt Cash and cash equivalents less total borrowings (excluding lease liabilities).
Capital employed
Statutory net assets less goodwill, intangible assets, net debt, retirement benefit asset
and the building safety provision.
Tangible net asset value (TNAV) Statutory net assets less goodwill, intangible assets and net debt.
Return on capital employed (ROCE) Adjusted operating profit divided by average capital employed.
Reconciliation of adjusted measures to reported measures (where appropriate):
PROFIT OR LOSS ACCOUNT
2024
Revenue
£m
Operating
profit
£m
Net finance
expense
£m
Share of profit
from joint
ventures
£m
Profit
before tax
£m
Tax
£m
Profit
for the year
£m
Reported measures 3,779.3 167.0 (65.4) 3.3 104.9 (30.4) 74.5
Adjusting items:
Exceptional items
1
- 99.9 8.0 20.9 128.8 (37.3) 91.5
Share of joint ventures
2
549.9 51.8 (37.3) (24.2) (9.7) 9.7 -
Amortisation of acquired
intangible assets
3
- 39.5 - - 39.5 (11.4) 28.1
Other tax items
4
- - - - - (5.2) (5.2)
Total adjusting items 549.9 191.2 (29.3) (3.3) 158.6 (44.2) 114.4
Adjusted measures 4,329.2 358.2 (94.7) - 263.5 (74.6) 188.9
PROVIDING CLARITY TO THE USERS OF THE ANNUAL REPORT AND ACCOUNTS
Annual Report and Accounts 2024
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35
2023 restated
1
Revenue
£m
Operating
profit
£m
Net finance
expense
£m
Share of profit
from joint
ventures
£m
Profit
before tax
£m
Tax
£m
Profit
for the year
£m
Reported measures 3,564.2 300.0 (63.0) 56.0 293.0 (78.0) 215.0
Adjusting items:
Exceptional items
2
- 46.2 19.4 - 65.6 (18.0) 47.6
Share of joint ventures
3
477.9 83.6 (25.2) (56.0) 2.4 (2.4) -
Amortisation of acquired
intangible assets
4
- 46.3 - - 46.3 (10.9) 35.4
Other tax items
5
- - - - - (1.1) (1.1)
Total adjusting items 477.9 176.1 (5.8) (56.0) 114.3 (32.4) 81.9
Adjusted measures 4,042.1 476.1 (68.8) - 407.3 (110.4) 296.9
EPS
2024
2023
restated
1
Adjusted earnings (£m) 188.9 296.9
Weighted average number of ordinary shares (m) 338.1 346.0
Adjusted basic earnings per share (pence) 55.9 85.8
TNAV AND CAPITAL EMPLOYED
TNAV measures the intrinsic value of the tangible assets held by the Group. Capital employed is a key input for determining
ROCE and represents the capital used to generate adjusted operating profit.
2024
£m
2023
restated
1
£m
Net assets 3,235.9 3,303.9
Less:
Goodwill (827.6) (827.6)
Intangible assets (368.8) (409.3)
Net debt 180.7 88.8
Tangible net assets 2,220.2 2,155.8
Retirement benefit asset (31.7) (34.2)
Building safety provision 324.4 289.0
Capital employed 2,512.9 2,410.6
Opening capital employed 2,410.6 2,139.5
Closing capital employed 2,512.9 2,410.6
Average capital employed 2,461.8 2,275.1
ROCE
ROCE measures the efficiency of capital use by the Group.
2024
2023
restated
1
Adjusted operating profit (£m) 358.2 476.1
Average capital employed (£m) 2,461.8 2,275.1
ROCE (%) 14.6 20.9
1
The 2023 comparatives have been restated as described in note 1 to the financial statements.
2
Exceptional costs are those which the Directors consider to be material by size and irregular in nature. The adjusted measures exclude these items in
order to more clearly show the underlying business performance of the Group.
3
The Group undertakes a significant portion of its activities through joint ventures with its partners. In accordance with IFRS, the Group’s statement of profit
or loss and other comprehensive income includes its share of the post-tax results of joint ventures within a single line item. The Directors believe that
showing the Group’s share of revenue, operating profit and net financing expenses from joint ventures within the respective adjusted measures better
reflects the full scale of the Group’s operations and performance.
4
The amortisation charge relates to intangible assets which arose on the acquisitions of Linden Homes and Galliford Try Partnerships from Galliford Try
PLC and of Countryside Partnerships PLC. The charge is non-cash and was set at the time of the acquisition. The Directors consider that this needs to be
excluded in the adjusted measure to show the underlying business performance of the Group more clearly.
5
The Directors consider that one-off tax items need to be excluded such that the adjusted income tax expense represents the underlying tax charge for the Group.
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
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Vistry Group PLC
FORWARD ORDER BOOK
The Group’s forward order book comprises the unexecuted element on contracts that have been secured including those which
are reported within its joint ventures. The Directors believe that showing the Group’s share of joint venture orders better reflects
the full scale of the Group’s pipeline. Additionally, reservations made on Open Market sales have been included given they are a
commitment made by a customer against a specific plot.
2024
£m
2023
£m
Transaction price allocated to unsatisfied performance obligations on contracts 3,711.6 3,722.9
Adjusting items:
Share of forward orders included within the Group’s joint ventures 551.2 558.2
Open Market reservations 178.0 185.0
Forward order book (adjusted measure) 4,440.8 4,466.1
OTHER KEY DEFINITIONS AND TERMS
The following table includes definitions of key terms used throughout the Annual Report and Accounts which haven’t been
defined elsewhere.
TERMS DEFINITION
New home
completions
The number of homes sold in the financial year, including joint venture completions. For Open
Market homes, this is the number of legal completions during the year. For Partner Funded homes,
this represents the equivalent number of units sold, based on the proportion of work completed
under a contract during the year.
Land bank
The total number of plots expected to be deliverable on land owned or controlled by the Group
(including in joint ventures) which have planning consent.
Land development
opportunities
The total number of plots expected to be deliverable on land owned or controlled by the
Group (including in joint ventures) or through other contractual arrangements which have
planning consent.
Strategic land The total number of plots expected to be deliverable on land owned or controlled by the Group
(including in joint ventures) without planning consent.
Forward order book The Group’s share of future revenue that will be derived from signed contracts, letters of intent or
open market sales reservations including the Group’s share of joint ventures’ forward order book.
HBF score The Home Builders Federation (HBF) undertakes customer satisfaction surveys. Survey forms are
sent to customers at both 8 weeks and 9 months after they complete the purchase of their new
home. The score measures the percentage of respondents answering ‘yes’ to the key question
“Would you recommend your builder to a friend?”.
To achieve a 5-star rating, an average score of 90% or more is required on the 8-week surveys.
NHBC Reportable
Items (RIs)
The average number of all RIs received within the period across all inspections carried out on
sites registered with the National House Building Council (NHBC). An RI is any contravention of
the NHBC technical standards or building regulations recorded at any key build stage or
frequency visit.
NHBC Construction
Quality Review (CQR)
An independent, site-based review undertaken by NHBC of the quality of construction.
The CQR score is the average score received within the period across all reviews carried out
on sites registered with the NHBC.
Annual Report and Accounts 2024
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37
TERMS DEFINITION
Employee
engagement score
The Vistry Group employee survey, run by Workday Peakon Employee Voice, covers a number
of different topics, including various drivers, all of which contribute towards the overall sense of
engagement amongst our teams. Surveys are run twice per year, with employees scoring their
responses on a scale of 0-10.
Voluntary turnover
The number of employees who resigned from the organisation as a percentage of the average
total number of employees in the year.
Accident Incident Rate
(AIR)
The number of reportable accidents per 100,000 workers on site.
Service Strike Incident
Rate (SSIR)
The number of service strikes per 100,000 workers on site.
Scope 1
Greenhouse Gas
(GHG) Emissions
Scope 1 emissions are direct emissions from owned or controlled sources. These include natural
gas, biomass, company cars, leased vans and fuel utilised for operations. They are measured
in tCO2e.
Scope 2
Greenhouse Gas
(GHG) Emissions
Scope 2 emissions are indirect emissions from the generation of purchased electricity used in our
offices, sites and plots before they are handed over as well as electricity from Electric Vehicles.
They are measured in tCO2e.
Scope 3
Greenhouse Gas
(GHG) Emissions
Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in our supply
chain. They are measured in tCO2e.
Net Zero
Net Zero is when any remaining GHG emissions are neutralised through carbon removals. For Vistry,
this requires a minimum absolute Scope 1 and 2 GHG emissions reduction of 90% and scope 3 GHG
emissions reduction of 97% per m2 by 2040 from a 2022 base year. Carbon offsets will be used
as a last resort to offset residual emissions. If used, these offsets will meet the following criteria:
Verified Carbon Standard (VCS), Gold Standard Verified Emissions Reduction (GS VER), Voluntary
Offset Standard (VOS), Climate Community and Biodiversity Standards (CCB) or will meet the
requirements of the Quality Assurance Standard for Carbon Offsets.
Non-hazardous
construction waste
diverted from landfill
The percentage of waste removed from sites without using incinerators or landfill.
Affordable home
completions
Affordable homes include social rent, affordable rent, intermediate rent, right to shared ownership,
right to buy, rent to buy, shared ownership, first home/discounted market sale.
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
PROVIDING CLARITY TO THE USERS OF THE ANNUAL REPORT
continued
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Vistry Group PLC
Our approach to this Sustainability Report
In 2023, we reset our sustainability strategy to focus on material issues that were identified through a double
materiality assessment. The material issues are shown in the box below.
MATERIAL ISSUES
BUILDING COMMUNITIES CLIMATE & RESOURCES OUR PEOPLE
• Social value & community impact
• Affordable homes
• Biodiversity
• Placemaking
• Energy & Greenhouse Gas (GHG)
• Waste & resource efficiency
• Sustainable & low carbon homes
• Equality, Diversity & Inclusion
• Health, Safety & Wellbeing
• Talent Attraction
Development & retention
SUSTAINABILITY PILLARS
CLIMATE &
RESOURCES
BUILDING
COMMUNITIES
OUR PEOPLE
1
SUSTAINABILITY HIGHLIGHTS FROM 2024
2
OUR APPROACH TO SUSTAINABILITY
1
SUSTAINABILITY HIGHLIGHTS FROM 2024
4
OUR PEOPLE
‘PUTTING PEOPLE AT THE HEART OF WHAT WE DO’
5
SUSTAINABILITY IN ACTION
3
MATERIAL ISSUES & PROGRESS IN 2024
Our purpose as a responsible developer is to work in partnership to deliver
sustainable homes, communities and social value leaving a lasting legacy of
places people love.
SUSTAINABILITY REPORT
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Annual Report and Accounts 2024
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39
HIGHLIGHT WHAT THIS MEANS
£115m social and local economic value generated The social, economic, and environmental value created by
Vistry during 2024.
4,371 additional affordable homes We are increasing the supply of affordable housing across
the country.
678 individual learners passing through our skills academies Addressing skills shortages and reducing unemployment
through targeted support in employment, skills
development, and job opportunities.
Over 1,200 visitors to the Vistry Innovation Centre A unique, sector-leading facility incorporating cutting-edge
technologies that will be used to help meet the Company’s
Net Zero ambitions as well as the delivery of the Future
Homes Standard.
>700 Zero Carbon ready homes (in operation)
completed in FY24
Delivering these homes at scale is informing our standard
house type designs, to help meet the future
homes standard.
Embedded our carbon action plan and increased use of
HVO fuel and the use of battery generators
Reduced absolute Scope 1 and 2 GHG emissions by 3%.
Developed monthly regional, divisional and Group
sustainability scorecards
Allows progress to be monitored at all levels.
Launched a waste action plan Clear instructions for how regional teams can reduce
waste on site.
Octopus Energy deal on Zero Bills ‘Zero Bills’ initiative will provide homes equipped with
cutting-edge green technology, such as heat pumps, solar
panels and batteries, that guarantees no energy costs for 10
years. We will roll this out on several developments.
Hydrogen telehandler trial on site in the Midlands Working with our supply chain to help test innovative
technology to meet Net Zero targets.
Launched an internal design guide in collaboration with
the Bat Conservation Trust
Emphasises best practice principles that foster collaborative
working and maximise benefits for wildlife and people.
Completed an annual review of our double
materiality assessment
Ensures our approach is focused on the most important
sustainability issues.
Included sustainability and social value into our new
‘life of site’ process
To give guidance to regional teams and ensure a
consistent approach.
Published our first stand-alone sustainability report Provides more detail on our approach and progress
during the year.
Facilitated training workshops with the Supply Chain
Sustainability School and developed a Vistry focused
Introduction to Sustainability training module.
To help upskill our people and our supply chain.
The table below presents a selection of key sustainability highlights achieved throughout the year. Each highlight is accompanied
by a brief explanation, providing context on its significance and impact. These achievements reflect our ongoing commitment to
sustainability and our progress toward long-term sustainability goals.
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Vistry Group PLC
SUSTAINABILITY OVERSIGHT AND ULTIMATE DECISION MAKING
BOARD AND COMMITTEES
OVERSIGHT AND MONITORING
EXECUTIVE LEADERSHIP TEAM
DECISION MAKING
SUSTAINABILITY COMMITTEE
DELIVERY
BUSINESS IMPROVEMENT GROUP
REGIONAL BOARDS
REGIONAL SUSTAINABILITY LEADS
How our sustainability
pillars work
2
OUR APPROACH TO SUSTAINABILITY
PURPOSE AND STRATEGY
Our purpose as a responsible developer is to
work in partnership to deliver sustainable
homes, communities and social value.
Sustainability is an integral part of how
Vistry operates. As the largest developer of
affordable homes, building one in six
across the country in 2024, delivering social
value is a core part of our offer.
As a responsible developer, we want
our strategic partnerships to
create sustainable homes, vibrant
communities, and lasting social value.
Our sustainability strategy is
deeply integrated into our core
partnerships-led strategy.
This integration underscores
its critical importance to our
long-term goals and the needs
of all our stakeholders.
Read more about the targets for each key
sustainability issue in our online Sustainability Report
www.vistrygroup.co.uk/sustainable-approach/policies-
and-publications.
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Annual Report and Accounts 2024
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41
SUSTAINABILITY REPORT
continued
CREATING PLACES PEOPLE LOVE
MANAGING CLIMATE & RESOURCES
ENERGY & GHG EMISSIONS WASTE & RESOURCE EFFICIENCY SUSTAINABLE & LOW CARBON HOUSING
Working to be a Net Zero
organisation by 2040 and
improving operational processes.
Manage and reduce waste in line
with the waste hierarchy and
embracing circular economy principles.
Reducing the environmental impact of
the materials we use in our operations.
Designing and delivering house
types that minimise Greenhouse
Gas (GHG) emissions, running costs
and the environmental impact.
The use of modern methods of
construction (MMC).
BUILDING COMMUNITIES
SOCIAL VALUE &
COMMUNITY IMPACT
AFFORDABLE HOMES BIODIVERSITY PLACEMAKING
By placing people and communities at the heart of our
decision-making process, we build sustainable communities
that last and flourish.
To ensure that everyone’s needs remain central, we follow
the Vistry ‘Building Communities’ approach on every project;
from master-planning and design, through to building
and aftercare, working closely with communities and
stakeholders throughout the development journey.
OUR PEOPLE
DIVERSITY, EQUITY & INCLUSION HEALTH, SAFETY & WELLBEING
TALENT ATTRACTION,
DEVELOPMENT & RETENTION
Ensuring we continue to create an
inclusive environment where our
people can thrive, develop and
excel in what they do.
Prioritising the health and safety of
our employees and subcontractors in
everything we do.
Attract, develop and retain the
best people; making Vistry a great
place to work.
GOVERNANCE
Effective governance is critical to the success of our
sustainability strategy. The Board has responsibility for
sustainability, and delivery of the sustainability strategy is
delegated to the Sustainability Committee.
Supporting our Sustainability strategy are our supporting
policy documents, covering health and safety, the
environment, ethics and conduct, equal opportunities
and whistleblowing. All are reviewed and communicated
annually and are available on our website.
Sustainability Committee
The objective of the Sustainability Committee is to make
recommendations to the Executive Leadership Team
relating to the effective implementation of our sustainability
strategy and our performance against targets.
The Sustainability Committee meets at least three times per
year and addresses issues including:
• Social value and community impact.
• Biodiversity, energy and Greenhouse Gas emissions.
• Modern slavery, next generation sustainability benchmark
membership, sustainable and low carbon homes.
By making sustainability a business as usual priority, we have
embedded sustainability decision-making into our life of
site process. This includes a sustainability action plan ensuring
that accountability is assigned through each stage of a project
lifecycle; such as commitments made in bids or specific
partner requirements.
SUSTAINABI LITY STRATEGY
Our sustainability strategy lays strong foundations for delivering on our commitments through our three core priority areas:
Climate & Resources, Building Communities and Our People. A description of each key sustainability issue is included in the
table below.
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Vistry Group PLC
Board environmental and sustainability skills
Overall responsibility for sustainability rests with the Board.
Using an interactive questionnaire, we assessed the Board’s
environmental and sustainability knowledge and we are
confident that the Board is sufficiently competent in
these areas.
Areas of Board focus during 2024 have included modern
slavery, innovation and carbon reduction.
Materiality and how it informs our approach
to sustainability
Our sustainability strategy is focused on the issues that
are most relevant to the Group and its key stakeholders.
These issues were highlighted following a double materiality
assessment carried out during the prior year and updated
during 2024 as part of an internal review.
The review was aligned to the Corporate Sustainability
Reporting Directive (CSRD) and International Financial
Reporting Standards (IFRS) best practice standards.
We completed risk analysis against existing and newly
announced legislation and planning policy and used this
to rank issues based on the severity of risks and scale of
opportunity. We have reviewed competitor approaches to
ESG and identified opportunities to differentiate Vistry’s
strategy to prioritise issues. A workshop was held in
2024 with various internal stakeholders to inform
materiality ranking.
We found that social value, placemaking, sustainable and
low carbon homes and biodiversity have moved up the
scale of materiality. Social value has been rated within the
top 10 of highly material issues. In response to this, we have
introduced social value action planning into our life of site
process to help embed it into every project. We have also
developed the ability to report social value at a project level.
We will now be able to share the social value return on
investment with our partners.
For more information on our Double Materiality
Assessment see our Sustainability Report::
www.vistrygroup.co.uk/sustainable-approach/policies-
and-publications.
Risks and opportunities
We recognise that strategic risks and opportunities arise
from sustainability issues and sustainability is included as a
principal risk.
We are preparing to disclose sustainability risks and
opportunity in more detail in future reports, in line with
expected forthcoming reporting guidelines.
More information, including how we mitigate sustainability
risks and opportunities can be read on page 72.
ETHICAL AND RESPONSIBLE BUSINESS
Modern Slavery
We recognise that modern slavery can occur in the
construction industry. We operate an Anti-Slavery and Human
Trafficking Policy, which outlines our zero-tolerance approach
to modern slavery and human trafficking and supports our
efforts to combat modern slavery.
Our people are required to complete a dedicated modern
slavery awareness training, which provides guidance on
understanding modern slavery in the construction industry,
how to spot the signs of modern slavery together with
contact details for relevant agencies and details of our Speak
Up hotline.
Our Speak Up hotline, is operated by an independent third
party, Ethics Point, and can be used by employees to report
suspected wrong-doing.
Vistry has an external
partnership with Supply Chain
Sustainability School and is a
member of the Modern Slavery
Engagement Programme, which
aims to increase awareness and
provide guidance and training to our
supply chain. We have also pledged
our commitment to the Gangmasters
and Labour Abuse Authority Construction
Protocol.
Our supply chain onboarding process ensures that our
suppliers and subcontractors confirm compliance with the
Modern Slavery Act, provide details of their own modern
slavery policies and are aware of our modern slavery
commitments and expectations.
In FY25 we will review our strategy to ensure
it reflects the changes in material issues.
In FY25 we will establish a committee to
focus solely on modern slavery.
2024 HIGHLIGHTS STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS OTHER INFORMATION
Annual Report and Accounts 2024
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43
Ethical Code of Conduct
Our Ethical Code of Conduct Policy (Code) was updated in
January 2025 and outlines our commitment to high ethical
and moral standards and the responsibility framework we
have embedded to deliver our standards and appropriate
behaviours. The responsibility framework is delivered through
this Code and the supporting policies which set out the
Company’s approach to anti-bribery and corruption,
anti-fraud, anti-money laundering, equal opportunities
and whistleblowing.
Supply Chain Engagement
We recognise that everyone plays a part in making the
sustainability strategy successful. We collaborate with our
supply chain to improve sustainability performance and
support these stakeholders, ensuring they have the knowledge
and skills to contribute to a sustainable industry. Our primary
way to achieve this, is through the Supply Chain Sustainability
School. In partnership with the school, we have facilitated
workshops for our supply chain to introduce the school and
promote value.
ASSURANCE AND REPORTING
Assurance of sustainability data
The Group engaged DNV Business Assurance Services UK
Limited (DNV) to undertake independent limited assurance
of our 2024 sustainability data. The assurance engagement
was conducted in line with the International Standard on
Assurance Engagements 3000. DNV’s full Assurance Statement
and supplemental information and the full list of our reporting
criteria, together with definitions and methodologies can
be found in the Basis of Reporting section of our online
Sustainability Report.
www.vistrygroup.co.uk/sustainable-approach/policies-
and-publications.
The following table outlines the metrics within scope of
limited assurance:
METRIC
Total Scope 1 GHG emissions (natural gas, biomass,
company cars, leased vans, and fuel utilised for
operations) (tCO2e).
Total Scope 2 GHG emissions (purchased electricity)
location based (tCO2e).
Scope 1 and 2 (location-based) GHG emissions intensity
(tCO2e per 100m2 of legally completed build area).
Energy (Scope 1 and 2) (MWh).
Scope 3 GHG emissions - Category 3 fuel and energy
related activities (tCO2e).
Scope 3 GHG emissions - Category 6 business travel and
private vehicles (tCO2e).
Scope 3 GHG emissions - Category 11 use of sold products
- Regulated (tCO2e).
Number of individual learners who passed through
skills academies.
Total non-hazardous construction waste produced
in tonnes.
% of non-hazardous construction waste diverted
from landfill.
Non-hazardous construction waste intensity (tonnes per
100m2 of legally completed build area).
Forthcoming regulations and reporting requirements
We are actively preparing for forthcoming anticipated changes
in reporting, such as IFRS S1 and S2 and the Taskforce for
Nature-Related Financial Reporting.
SUSTAINABILITY REPORT
continued
44
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Vistry Group PLC
MATERIAL ISSUE
& LINK TO SDGs
DEFINITION TARGET SUSTAINABILITY KPI KPI continued PROGRESS IN 2024
PILLAR:
BUILDING
COMMUNITIES
SOCIAL VALUE
& COMMUNITY
IMPACT
The overall value
people place on changes
in their lives, not just in
terms of money.
It includes creating
local jobs, improving the
local environment and
biodiversity, and promoting
community health
and wellbeing.
We use the National
Themes, Outcomes
and Measures (TOMs)
Framework for Measuring
Social Value, developed
by the National Social
Value Taskforce.
• >300 learners passing
through skills academy
in 2025.
• Deliver £120,000 worth of
Local Social Economic Value
(LSEV) per £1m of build and
infrastructure costs each
year from 2025.
We have introduced a social value
plan into our life of site process.
This means every project has the
tools to develop a project specific
social value plan and enables us
to collaborate with partners to
develop social impact strategies
that are bespoke to the places and
communities with which we work.
2024 2023 2022
678
299
229
Number of individual learners
We have focused on refining how we capture,
measure, and communicate social value.
All active projects are now aligned under a
single data platform, allowing us to provide
clearer insights to our partners while meeting
the rising expectations for social value
contributions. Every new development can
now produce a social value impact report,
meaning we can quantify social value across
all of our new developments.
This year we have generated a total of £118m LSEV. This has been broken
down against our four social value pillars, as shown on page 55.
During 2024, 678 individual learners passed through our skills academies.
PILLAR:
BUILDING
COMMUNITIES
PLACEMAKING
Creating spaces that
people feel connected
to and enjoy being in.
When we develop our
homes, we also think
about ways to nurture
and revitalise communities.
We do this by working
with partners, who share
our goal of designing
desirable, well-connected
environments that
strengthen community
ties and lifestyles.
Implement the ‘Building for
a Healthy Life’ approach on
every new project from 2024.
From 2025, we will report the
proportion of developments
completed in the past year which
are designed to meet Building for a
Healthy Life criteria.
Building for a Healthy Life (BfHL) is a design tool, which comprises 12
considerations to assess design quality. It is England’s most widely known
and used design tool, and ultimately seeks to create places that are better
for people and nature. It is referred to in policy and is industry-accepted
and seen as a practicable way to assess design quality. It reflects the
Government’s increased emphasis on design.
We have committed to using BfHL for all new developments, to guide
the inception of a scheme and set expectations. To enable this, we have
included BfHL in our life of site process, to ensure it is considered as early
as possible in the design process. Our life of site process launched in 2024,
and therefore, it will take some time for all completed developments to
have implemented the BfHL criteria. We look forward to reporting the
complete roll-out across all new developments in future years.
We have delayed developing an approach to post-occupancy evaluation
and have scheduled its roll-out for 2025 to align it with the launch of the
new Vistry collection.
The table below outlines progress against our three sustainability pillars. Each pillar covers key sustainability issues, relevant
UNSDGs (see key opposite) targets, key performance indicators, and a summary of progress over the year. Where applicable, links
to further reading are provided.
3
MATERIAL ISSUES AND PROGRESS IN 2024