12th Nov 2020 10:31
(Alliance News) -Â Vistry Group PLC issued a bullish update on Thursday, saying it is on track to deliver full-year profit at the top end of its expected range and will resume dividends earlier than expected.
Demand for new homes has remained "consistently strong", the housebuilder said, with the firm achieving a private sales rate per outlet per week since July 1 of 0.67, up from 0.58 a year ago.
"The last couple of weeks have remained robust despite the announcement of the second national lockdown. Pricing has been firm, and we are fully sold for our forecast total completions for FY20," said Vistry.
The homebuilder said it is on track to deliver full-year pretax profit for 2020 at the top end of its expected range of between GBP130 million and GBP140 million, while net debt is anticipated to be "significantly lower" than previously expected.
Vistry reported a pretax profit of GBP188.2 million for the 2019 financial year.
Looking to 2021, Vistry expects to step-up completions in both Housebuilding and Partnerships. Assuming stable market conditions, the company remains confident it can increase pretax profit in 2021 to GBP310 million.
"With the group's strong performance including cash generation and the expected reduction in net debt, combined with the positive outlook supported by the group's forward sales position, the board is pleased to confirm its intention to resume dividend payments earlier than previously expected with an interim payment payable next November in respect of the 2021 financial year," said Vistry.
It expects to commence with a 2.5 times dividend cover and a progressive policy thereafter.
Shares in Vistry were up 4.0% at 790.00 pence in London on Thursday.
By Lucy Heming;Â [email protected]
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