15th Jan 2020 08:20
(Alliance News) - FTSE 250-listed housebuilder Vistry Group PLC on Wednesday said it expects to deliver record full-year profit despite reporting that Brexit and the UK general election caused prices to fall in the second half of 2019.
Vistry, formerly known as Bovis Homes Group PLC, said full-year pretax profit before exceptional items is expected to rise above market forecasts of GBP181.6 million. Pretax profit last year came in at GBP168.1 million with operating profit before exceptional items at GBP174.2 million.
Chief Executive Greg Fitzgerald said: "The group has made further operational progress over the past 12 months and for 2019 expects to deliver another year of record profit."
The company renamed itself as Vistry after it completed the acquisition of two Galliford Try PLC businesses in January.
Back in November, Galliford had agreed to sell its Linden Homes and Partnerships & Regeneration units in a deal worth GBP1.14 billion. This included Vistry's issue of 63.7 million new shares to Galliford plus GBP300 million in cash and the assumption of Galliford's GBP100 million 10-year private debt placement.
Vistry said Wednesday it expects to book exceptional costs of GBP15 million for 2019 for the acquisition.
"We completed the transformational acquisition of the Linden Homes and the renamed Vistry Partnerships at the start of this year; integration is well under way and we are fully focused on delivering the clear and significant benefits from this exciting combination as quickly as possible," Fitzgerald added.
On its 2019 trading, Vistry said it completed 3,867 new homes, 2.9% than 3,759 in 2018. The average selling price was GBP279,000, up 2.1% from GBP273,200 the year before.
Vistry added: "Market uncertainty surrounding Brexit and the general election led to some increased pressure on pricing in the second half resulting in a roughly 1% to 2% reduction in underlying sales prices for that period. This was, in part, offset by a combination of the group's own build cost savings and a lack of cost inflation.
"As a result, the group expects to deliver a further improvement in operating margin for 2019."
"Whilst it is early in the year to comment on 2020 trading, we have a strong forward sales position and trading to date has been very positive, with consumer confidence returning and industry fundamentals remaining strong. We are excited about the prospects for the enlarged business and expect to report much progress in the year ahead," the company added.
Vistry shares were 0.2% lower at 1,339.00 each in London during early trade on Wednesday morning.
By Eric Cunha; [email protected]
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