By Anna Peel. Originally published at ValueWalk.
Vistry Group PLC (LON:VTY)’s full-year underlying revenue grew 32% to £2.7bn, reflecting increased demand across Housebuilding and Partnerships. Underlying operating profits more than doubled to £368.4m, as margins recovered from a tough 2020 which was heavily impacted by lockdowns.
Q4 2021 hedge fund letters, conferences and more
Following a positive start to 2022, the group believes it is “well positioned to deliver a significant step up in profits and returns in 2022”
The board is proposing a final dividend of 40p, bringing the total up to 60p for 2021.
The shares rose 1.7% following the announcement.
Vistry’s Results
“Today’s results should calm any concerns investors might have had about easing property demand in the wake of a hot year for the housing markets. Strong performance was expected though, with management raising guidance a few months ago, but markets seem more focused on positive outlook commentary.
2022 has got off to a flying start, with private sales rates and prices on the rise and when you add in strong forward sales figures to the mix, that starts to paint a pretty picture for a housing market that some feared may slow as mortgage rates rise along with the Bank of England’s base rate.
Vistry’s Partnerships arm, which focuses on mixed-tenure projects, adds a layer of security if the wider market starts to stagnate. The division’s been growing rapidly and one that’s expected to go from strength to strength.
Inflation continues to be cause for concern, but importantly rising prices have more than offset the impact so far. Looking forward, 2022 is expected to bring with it 6% build cost inflation as the cost of wages and materials continues to go up. But management don’t seem too concerned just yet, upping the pay-out in their proposed final dividend with a balance sheet that looks particularly healthy.”
Article by Matt Britzman, equity analyst at Hargreaves Lansdown
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