Vistry Group PLC Market Update (9877H)
December 09 2020 - 2:00AM
UK Regulatory
TIDMVTY
RNS Number : 9877H
Vistry Group PLC
09 December 2020
9 December 2020
Vistry Group PLC
("Vistry" or "the Group")
Strong cash generation drives significant reduction in
leverage
Board to consider reinstating FY20 dividend
As stated in our trading update of 12 November 2020, the Group
expects to deliver FY20 profit before tax [1] at the top end of the
range of GBP130m to GBP140m, reflecting the strong operational
performance across the Group.
The Group now confirms that it expects to have a net debt
position, as at 31 December 2020, of no greater than GBP40m with
the possibility of a modest net cash position. This has been driven
by continued strong trading and low cancellations, good cash
management at an individual business level, and the ongoing
benefits from the successful combination and integration of the
enlarged business.
The number of completions scheduled for December is at a normal
level, with our usual strong focus on quality, and there are no
individually significant transactions within the revised forecast.
The Group continues to buy land in-line with its strategy of
retaining a 3.5 to 4.0-year land bank for the Housebuilding
business and delivering accelerated growth for Vistry Partnerships'
mixed tenure business. All land for forecast FY21 completions
across the Group is secured and we are in a strong position for
FY22. The Group utilises land creditors where appropriate and will
secure land conditional on detailed planning. Land creditors as at
31 December 2020 are expected to be at a similar level to 30 June
2020.
Capital allocation and FY20 dividend
As stated in September, the Group's primary focus has been on
deleveraging whilst positioning the business to deliver a step up
in performance in FY21 and profit before tax(1) of GBP310m. Looking
forward, the Group expects to carry an average net debt position in
FY21 as we build for FY21 completions and will target a net cash
position for 31 December 2021.
The Group will continue to invest in its land bank to deliver
against its strategy for both Housebuilding and Partnerships.
In November, the Board confirmed its intention to resume
dividend payments earlier than previously expected with an interim
payment payable next November in respect of FY21 with a 2.5 times
dividend cover and a progressive policy thereafter. Given the
strong cash performance and accelerated deleverage, the Board will
consider reinstating a modest final dividend in respect of
FY20.
The Group has repaid furlough monies received earlier in the
year. Apart from this, the Group has not benefitted from any
Government schemes related to supporting businesses and employees
during the COVID-19 pandemic.
The Group will issue a trading update for the 12 months ended 31
December 2020 on 12 January 2021, ahead of the publication of its
full year results on 25 February 2021.
For further information please contact:
Vistry Group PLC
Earl Sibley, Chief Financial
Officer
Susie Bell, Head of Investor
Relations 01675 437160
Powerscourt
Justin Griffiths
Nick Dibden
Victoria Heslop 020 7250 1446
[1] Pre exceptional items and amortisation of acquired
intangible assets
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END
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