2nd Mar 2022 12:20
(Alliance News) - Vistry Group PLC's shares climbed on Wednesday after the housebuilder said it had more than tripled profit in 2021 and expects further growth this year.
The FTSE-250 listed firm brought in GBP2.40 billion in revenue in 2021, up 30% year-on-year from GBP1.81 billion. This was due to higher demand in a strong market, and Vistry's offer of a higher proportion of mid-range homes.
The Kings Hill, England-based firm said 2021 pretax profit more than tripled to GBP319.5 million, from GBP98.7 million in 2020. This is also 83% up on profit of GBP174.8 million in pre-pandemic 2019.
Vistry's share price was up 8.0% to 1,021.00 pence each in London on Wednesday at midday.
On an adjusted basis, profit in 2021 had more than doubled year-on-year to GBP346.0 million from GBP143.9 million. Its adjusted gross margin improved by 470 basis points to 22% from 18% the prior year, as it recovered from the hit of Covid.
Sales prices were up 3.7% to an average of GBP356,000 from GBP343,200 in 2020. This helped to offset growing costs from build cost and labour inflation.
Housebuilding completions were up by 41% to 6,551 from 4,652 units in 2020. Completions from Partnerships including joint ventures were also up 41% to 2,088 homes from 1,479. Vistry reports "no real impact on productivity" from the pandemic in the year.
It proposed a final dividend of 40 pence per share, bringing the total to 60p for 2021, up from a 20p total in 2020. Cash at year-end was "significantly ahead of expectations" at GBP234.5 million, up from GBP37.9 million the year before.
In 2022 so far, rates of private sales have increased by 20%, at higher prices. Vistry expects to deliver a "significant step up in profit and returns" during the year, despite cost inflation to continue at around 6%. It also said it is well positioned to deliver a significant step up in profit and returns in 2022.
"Notwithstanding the shocking events in Europe and the attendant political uncertainties, 2022 has got off to an incredibly positive start and the group is in great shape to deliver on its strategy of maximising the strengths and opportunities from the valuable combination of our Housebuilding and Partnerships businesses, and on achieving sector-leading returns in the medium term," said Chief Executive Greg Fitzgerald.
By Elizabeth Winter; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Vistry Grp