9th Dec 2020 10:52
(Alliance News) - Vistry Group PLC on Wednesday said it will consider paying a dividend in 2020, as it expects to deliver annual profit at the top end of its guided range.
The Kent-based housebuilding company forecasts 2020 pretax profit of between GBP130 million and GBP140 million. This would be down as much as 31% from GBP188.2 million in 2019.
Vistry said that it expects to have a net debt position of no greater than GBP40 million at December 31, with the possibility of a modest net cash position. This has been driven by continued strong trading, low cancellations and good cash management, it said.
In November, Vistry confirmed its intention to resume dividend payments earlier than previously expected, with an interim payment payable next November in respect of 2021, with a 2.5 times dividend cover and a progressive policy thereafter. However, given its strong cash performance and accelerated deleverage, Vistry said it will consider reinstating a "modest" final dividend in respect of 2020.
Vistry had said back in September that its primary focus was deleveraging, while aiming to step up in terms of performance during the 2021 financial year and to achieve a pretax profit of GBP310 million.
The company also said Wednesday it repaid furlough grants obtained as a result of the Covid-19 pandemic and has not benefited from any UK government schemes related to supporting the business and employees.
Vistry will announce a trading update for the year ending December 31 on January 12 and will publish its full-year results on February 12.
Shares in Vistry were up 5.1% at 907.00 pence in London on Wednesday.
By Zoe Wickens; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Vistry Grp