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Vistry Group PLC on Thursday reported an ‘excellent’ first-half performance that ‘significantly’ exceeded its expectations at the start of the year, as it lifted its payout by 15%.
In the six months that ended on June 30, the Kent, England-based housebuilder said pretax profit fell 29% to £111.3 million from £156.2 million a year before. The firm cited £71.4 million in additional fire safety provisions as behind decline in profit.
On an adjusted basis, which strips out the provisions, pretax profit rose 14% to £189.9 million. This figure was ahead of internal expectations, it said.
Revenue climbed 3.6% to £1.16 billion from £1.12 billion. Housebuilding completions increased to 3,219 from 3,126 a year ago, with adjusted gross margin improving to 23% from 22%.
It declared an interim dividend of 23 pence per share, up 15% from 20p a year prior.
Net cash amounted to £115 million as at June 30, compared to £31.6 million a year ago.
Chief Executive Greg Fitzgerald said the company has made a ‘solid start’ to the second half, leaving the group well positioned for the full-year.
He said: ‘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 2022, with adjusted group profit before tax to be in-line with our previously upgraded expectations.’
Looking ahead, Vistry said it remains positive on its full-year outlook and expects adjusted pretax profit to be about £417 million.
On its £1.25 billion tie-up with Countryside Partnerships PLC, a Brentwood, Essex-based housebuilder and urban regeneration company, announced at the start of this week, Vistry said the deal has ‘strong strategic rationale’.
The cash-and-shares deal values Countryside shares at 249 pence each, a 9.1% premium to its closing price on Friday. Countryside's and Vistry's boards have unanimously recommended deal and the merger is expected to become effective by the end of the first quarter of 2023.
Shares were up 0.8% at 807.50p each on Thursday morning in London.
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