In This Article:
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Total Completions: Increased by 7% to 17,225 units.
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Adjusted Revenue: Increased by 7% to GBP4.3 billion.
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Adjusted Profit Before Tax: GBP263.5 million, up from GBP250 million.
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Net Debt: GBP180 million at year-end.
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Operating Margin: Down significantly due to South division issues and transition to partnership strategy.
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Profit Before Tax and EPS: Both down 35% year-on-year.
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Return on Capital Employed (ROCE): 14.6%, a 25% reduction in operating profits.
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Partner-Funded Revenue Growth: 24% increase.
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Open Market Revenue: Fell by 16%.
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Average Selling Price (ASP): Held firm, with PRS ASP growing by 8% year-on-year.
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Finance Costs: Increased to GBP95 million, driven by higher bank interest costs and other finance costs.
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Building Safety Costs: GBP114.7 million in exceptionals, with GBP36.8 million cash outflow.
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Cash Flow: Net cash inflow before shareholder distributions was GBP80.7 million.
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Land Bank: Reduced to 4.4 years, with 76,000 plots in strategic land bank.
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Forward Order Book: GBP4.4 billion, representing 65% of forecast units for 2025.
Release Date: March 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Total completions increased by 7% to 17,225, making Vistry Group PLC (BVHMF) the largest house builder in the country by volume.
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Partner-funded projects rose by 18%, showcasing strong relationships and team efforts.
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Adjusted revenues increased by 7% to GBP4.3 billion, with average selling prices on the private side remaining firm.
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Vistry Group PLC (BVHMF) maintained a 5-star house builder rating for the sixth consecutive year and won over 70 site quality awards.
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The company is well-positioned to benefit from the government's GBP2 billion investment in affordable housing, aligning with its partnership strategy.
Negative Points
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The company significantly underperformed its financial targets, with a reported adjusted profit before tax of GBP263.5 million, impacted by issues in the South division.
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Operating margin was down significantly due to South division issues and a transition to the partnership strategy model.
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Profit before tax and EPS both decreased by 35%, with reported profit before tax down more significantly due to exceptional costs.
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Net debt increased to GBP180 million, influenced by South division issues and year-end delays.
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The company faced a shortfall at year-end from delays in partner agreements and commercial transactions, leading to a buildup of work-in-progress and stock.
Q & A Highlights
Q: Can you provide more clarity on the H1-H2 split and the expected recovery in H2? A: Greg Fitzgerald, CEO, explained that the recovery in H2 is mainly due to the GBP2 billion and GBP800 million previously announced funding coming through in the second half of the year. Private sales are expected to come through, but likely at a lower margin in the first half compared to the second half. Tim Lawlor, CFO, added that there is typically a higher weighting of private sales in the second half, which will also benefit from operating leverage as fixed costs are more covered.