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Vistry profits beat forecasts as builder regains top rating

Published: 03:47 27 Feb 2020 EST

Vistry Group PLC -

Vistry Group PLC (LON:VTY) reported underlying profits well ahead of expectations as the builder restored its reputation with customers.

Profit before tax and exceptionals of £188mln for 2019 was up 12% on the year before and well ahead of the £182mln that analysts had been expecting before last month’s upbeat trading statement. 

The stronger profits were down to 6.5% increase in revenues to £1.1bn as numbers of completed homes and average selling prices were both up 3% and allied to a 60 basis-point improvement in profit margins.

Some of those improved metrics reflected the increase to 5-star customer satisfaction rating under the Home Builders Federation and National House Building Council’s annual customer satisfaction survey for last year.

Formerly known as Bovis Homes, the FTSE 250 group had previously built up an unwanted reputation as one of several of the UK’s housebuilding companies known for shoddy work, leading to the group slipping to a 3-star rating in 2016 and to a former boss having to issue a public apology to customers. 

As well as repairing its reputation, under chief executive Greg Fitzgerald the company has also been further transformed with the acquisition of Galliford Try PLC’s (LON:GFRD) Linden Homes housebuilding arm and housing association partnerships business for £1.1bn in early January. Galliford shareholders were left holding 29% of the enlarged and renamed Vistry.

"We are making excellent progress with integration, and I am confident we will deliver the clear and significant benefits from this exciting combination," said chief executive Greg Fitzgerald.

The group hiked the dividend increased to 61.5 pence per share from to 57p the year before.

Vistry shares were down 4% to 1,287p in early trading on Thursday. 

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