Vistry Group (VTY) Trading Update summary

First-half performance highlights

• Completions rose 8% to 7,750 units, with a total sales rate up to 1.21, reflecting strong demand and a shift to a 100% partnership model.

• Forward sales increased 21% year-on-year to £5.1 billion, supporting growth targets.

• Adjusted operating profit grew 10% to about £227 million, with profit before tax up 7% to £186 million for H1 2024.

• Revenue for the first half was just under £2 billion, representing growth of over 10%.

• Net debt at 30 June 2024 was £323 million, trending down from last year, with improved H1 cashflow performance.

Operational highlights and partnerships

• 75% of completions were partner-funded, with strong demand from Registered Providers and Local Authorities.

• Entered 45 new partnership agreements, including a significant PRS deal with Leaf Living for 1,750 homes valued at £580 million.

• Investment in land and development secured around 8,225 new plots across 32 sites, with 65% from private and 35% from public sources.

• All land secured for FY24 completions and 80% for FY25, supporting future delivery.

• Increased timber frame capability supports faster build rates and operational efficiency.

Market and operational trends

• Open market demand improved compared to the previous year, with sales prices remaining firm and incentives at about 4%.

• The business is positioned to deliver over 18,000 units this year, up from 16,118 last year.

• Benefitted from lower building material costs due to supply chain engagement, with cost benefits expected to continue.

• Site managers prefer the faster build pace enabled by the partnership model, reducing uncertainty and improving team retention.

• Focused on operational and capital efficiency, aiming to release capital in FY24.