Vistry have reported a huge jump in pre-tax profits of around £345m for the year ending 31 December 2021 and are confidently expecting further significant growth in the year ahead.
The £345m more than doubles 2020’s full-year profit of £143.9m and is in line with expectations. The company also reports a strong balance sheet, with net cash position as at 31 December 2021 of £234m, compared to £38m for the same period in 2020, reflecting what the company describes as both increased profits and good working capital management.
The results were announced as part of a scheduled trading update for the year ended 31 December 2021, ahead of the publication of the company’s full year results on 2 March 2022.
Looking ahead, the group expects to deliver another significant step up in profits and returns in FY22. A company statement said: “The group starts FY22 in a strong position and our sites have returned to work efficiently following the break, with no significant impact from Covid-related absence to date. Total housebuilding and partnership mixed tenure forward sales as at 31 December are up 24% to £1.94bn (31 December 2020: £1.56bn), with 54% of total forecast units for FY22 already secured.
“Vistry Partnerships is making excellent progress with this strategy of rapidly growing higher margin mixed tenure revenues and fully expects to deliver on its FY22 targets of at least £1bn revenue, a 10% plus operating margin, and a return on capital employed in excess of 40%. Medium term, the business sees a clear trajectory to deliver c. £1.6bn revenues and an operating margin in excess of 12%.”
Greg Fitzgerald, Vistry chief executive, said: “2021 has been an excellent year for Vistry Group with progress and success achieved across all areas of the business. I am extremely proud of and grateful to our people who have shown huge talent, passion, and commitment to get us to where we are today. I am delighted this dedication has been recognised with Vistry being awarded Large Housebuilder of the year for 2021 at the recent Housebuilder Awards, less than two years since we formed the enlarged group.
“We are focused on leveraging the group’s unique combination of housebuilding and partnerships assets as well as our strength and capability across all housing tenures, with our target of delivering sector leading returns in the medium term. I’m delighted with the progress in the year - our housebuilding and partnerships businesses are together securing new, high quality development opportunities, while working successfully alongside each other on a number of existing sites. This successful joint approach is delivering enhanced overall returns.”