Vistry chief executive Greg Fitzgerald
In the six months to 30th June 2022 Vistry Group genereated revenue of £1,163.0m, up 3% on last year, from total completions up 5% to 5,409 (2021 H1: 5,151).
Pre-tax profit was down 29% for the half-year to £111.3m (2021 H1: £156.2m). This result includes an additional fire safety provision of £71.4m. Adjusted profit before tax was up 14% to £189.9m (2021 H1: £166.1m), which was ahead of management’s expectation.
Total costs were up on average 6% in the first half, and reflecting increasing energy prices, cost inflation is now running at 8%, Vistry said. However, all costs have been passed on in raised selling prices.
Adjusted revenue from the Housebuilding division increased by 4% to £902.4m (2021 H1: £868.7m), in-line with a strategy of controlled volume growth. Partnerships delivered a 9% increase in adjusted revenues to £425.9m (2021 H1: £390.6m).
Chief executive Greg Fitzgerald said: “The group has delivered an excellent performance in the first half, significantly exceeding our expectations at the start of the year. Operationally we are in great shape, and with our leading capability across all housing tenures, are very well positioned to maximise the broader market opportunity in the coming period.
“Our sites are operating well, with good labour availability, and have benefitted in the period from improvements in the supply of materials and the strong partnerships we have across our supply chain.
“We have made a solid start to the second half and are well positioned for the full year with our Housebuilding and Partnerships mixed tenure forward sales position up 10% on prior year and 96% of our forecast completions for FY 22 secured. Whilst mindful of the impact of wider economic uncertainties including rising energy costs, we continue to expect to see a significant step-up in profitability in both Housebuilding and Partnerships in FY 22, with adjusted Group profit before tax to be in-line with our previously upgraded expectations.”
Earlier this week Vistry revealed that it had secured a deal to acquire Countryside for £1,254m to supercharge its Partnerships business. Subject to shareholder and City formalities, this deal is expected to complete by the end of March 2023.
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