Vistry Group (VTY) Trading Update summary

First-half performance and financials

• Delivered strong first-half results with completions up 8% to 7,750 units and total sales rate rising to 1.21, driven by 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 rose 10% to £227 million, with adjusted profit before tax up 7% to £186 million for H1 2024.

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

• Net debt at 30 June 2024 was £323 million, trending down from last year, with expectations to finish the year in a net cash position.

Operational strategy and partnerships

• About 75% of completions were partner-funded, with strong demand from Registered Providers and Local Authorities; this mix is expected to shift toward 65%-35% as the open market recovers.

• Entered new agreements with 45 partners, including major RPs, PRS providers, and local authorities.

• Secured a significant PRS deal with Leaf Living for around 1,750 homes valued at £580 million.

• Secured around 8,225 new land plots across 32 sites, with 35% from public sources, and observed increased land market activity and slightly lower land prices.

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

Market conditions and efficiency

• Sales rates remained robust through political uncertainty, with forward momentum expected as the market stabilizes post-election.

• Open market demand showed positive momentum, with pricing flat and incentives at about 4% of sales prices.

• Build cost deflation of 1%-2% was achieved in H1, with expectations for flat costs in H2, supported by supply chain alignment with the partnership model.

• 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 subcontractor retention.