Vistry 1, Pandemic nil
Vistry Group issued a reassuring year-end trading update this morning and profits for the year are expected to be around £345m, which is in line with previous guidance. 2021 has been a year of significant growth in both the number of homes built and profits made, and that trend looks set to continue in 2022.
Vistry’s orderbook already contains 54% of forecast sales for 2022, a strong start, and at this early stage in the game, it's Vistry 1 pandemic nil.
Trading update highlights
FY21 adjusted PBT expectations £345m (FY20: £143.9m)
Net cash on Balance Sheet c.£234m (FY20 £38m)
Housebuilding completions 6,551 up 41% from 4,652
Gross margin expected to be at least 22% (FY20: 17.6%)
Land acquisition in the year 11,772 plots (FY20: 8,652)
Forward sales up 24% to £1.94bn (FY20: £1.56bn)
54% of total forecast volumes for FY2022 already secured
Vistry is getting on with the job in hand, it has made the most of the opportunities thrown up by the COVID-19 pandemic and avoided most of the threats. The Group knows where it wants to be and has a clear plan of how to get there. The strong mix of private housing, affordable and partnerships should help temper the impact of any housing market volatility on the Group’s financial performance.
Vistry’s exposure to high rise apartments is limited and it will work with the Department for Levelling Up, Housing and Communities as well as the Home Builders Federation to find and deliver an appropriate solution