Vistry Group (VTY) H1 2024 earnings summary

Executive summary

• Strong H1 2024 performance with completions up 9% to 7,792 units and adjusted operating margin maintained at 11.5%, driven by the Partnerships model.

• Revenue rose 11% year-over-year to £1,974.5m, with forward sales up 19% to £5.1bn and 91% of FY24 units secured.

• Announced £130m in share buybacks and distributions, with £285m paid or announced toward a £1bn three-year target.

• Confident in delivering over 18,000 completions in FY24, with full-year profits expected to exceed prior year.

• Partnerships model significantly outperformed traditional housebuilding, with 76% of completions partner-funded and 54% affordable housing.

Financial highlights

• Adjusted operating profit rose 10% to £227.3m; adjusted profit before tax up 7% to £186.2m; adjusted EPS at 38.8p, up 1.3%.

• Reported profit before tax up 37% to £156.7m; reported EPS up 41% to 33.9p.

• Net debt at £322.0m, improved from H1 2023, with available borrowing facilities of £1,015.7m.

• ROCE improved to 17.8% (H1 23: 17.5%), targeting 21.3% for the full year.

• Gross margin declined by 1.6ppts to 16.5% due to higher Partnerships activity.

Outlook and guidance

• On track to deliver over 18,000 completions in 2024, with profits expected to exceed 2023.

• Medium-term targets: 5–8% annual growth, 40% ROCE, £800m operating profit, and 12%+ operating margin.

• Confident in delivering £1bn capital return over three years; net cash position targeted by year-end.

• Potential for significant volume growth (30,000–40,000 units/year) if government stimulus materializes.