Vistry profit tops £300m

Vistry Group financial results for the year to 31st December 2021 show group revenue up 30% to £2,359m (2020: £1,812m), with total completions up 24% to 11,080 units (2020: 8,954).

Pre-tax profit grew more than threefold to £319.5m (2020: £98.7m). This time last year it was only expecting to make around £200m.

The year-end net cash position of £234.5m (2020: £37.9m) was also significantly ahead of previous expectations.

The results include another charge of £5.7m against post-Grenfell cladding and fire safety liabilities, with a total provision of £25.2m held at 31st December 2021. With the government seeking to get more money out of industry to released leaseholders from unfair financial burdens of remedial work, Vistry expects its total liability to reach between £35m and £50m.

From 1st April this year it will also be paying the 4% residential property developer tax.

Chief executive Greg Fitzgerald said: “Our impressive financial performance was once again matched by our delivery of high quality homes and customer service which has been recognised by our retention of the maximum five-star customer satisfaction rating from the Home Builders Federation (HBF).

“Being a successful business is also about doing the right thing. We are acutely aware of the anxiety faced by leaseholders in properties requiring cladding and fire safety remediation and we fully agree that the financial burden for this work should not rest with them. We remain committed to working with the government to fix this difficult issue for leaseholders.

“Notwithstanding the shocking events in Europe and the attendant political uncertainties, 2022 has got off to an incredibly positive start and the group is in great shape to deliver on its strategy of maximising the strengths and opportunities from the valuable combination of our Housebuilding and Partnerships businesses, and on achieving sector leading returns in the medium term.”

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