Vistry Group, a leading UK housebuilder, has delivered robust financial results for the first half of the year, reinforcing its full-year profit guidance. The company’s pre-tax profit slightly increased to £114.2 million, compared to £111.35 million in the same period last year. Vistry Group’s revenue also experienced significant growth, reaching £1.575 billion, driven by a remarkable 40% rise in legal unit completions.
Although the adjusted pre-tax profit, which excludes exceptional and one-off items, decreased by 8.4% to £174.0 million, Vistry Group remains confident in its ability to achieve an adjusted pre-tax profit exceeding £450 million for the entire fiscal year.
In an effort to optimize its business strategy, Vistry Group has made a strategic decision to shift its focus towards its high-return partnerships model. This innovative approach involves collaborating with government entities and housing associations to develop affordable and mixed tenure housing solutions. The company anticipates significant capital release as it reallocates assets from its housebuilding unit into this partnerships division.
Vistry Group’s commitment to excellence and adaptability in the ever-evolving housing market demonstrates its dedication to providing sustainable and affordable housing options for individuals and families across the UK.
Vistry to Refocus Business for Increased Affordable Housing
Vistry, a leading housing developer, has announced its decision to refocus the business in order to meet the growing demand for affordable housing and drive sustained growth. By merging its two units, the company aims to maximize value and deliver better benefits to its partners. The full integration is expected to be completed by the end of the year.
Chief Executive Greg Fitzgerald emphasized the company’s commitment to addressing the pressing social need for housing across the country. He stated, “Delivering affordable and sustainable homes is at the core of our social purpose and vision. We are excited about this unique opportunity for Vistry.”
To support its expansion plans, Vistry will launch a GBP55 million share buyback program. The buyback will begin in November and conclude prior to the announcement of the full-year results in March. This initiative is part of the company’s goal to distribute a total of GBP1 billion to its shareholders within the next three years, in place of dividend payments.
Vistry’s strategic move aligns with the increasing scale and demand for affordable housing. By refocusing their efforts, the company aims to make a substantial impact in meeting this social need while ensuring long-term shareholder returns.