The more defensive qualities of Vistry’s (VTY) beefed-up partnership operations were on show amid the construction and sales site shutdowns during the first half of 2020. A high proportion of revenue from contracting and pre-sold developments and an early return to site meant the decline in pro-forma revenues for the affordable housing division was limited to 8 per cent, compared with a collapse of more than half for the housebuilding business, after adjusting for the Galliford Try (GFRD) deal last year.
However, the merger has also left the group with higher leverage than most peers. Net debt is now at £357m, or 56 per cent of net tangible assets including land creditors. Management hopes to reduce that leverage figure to 35 per cent by the end of next year, but in the meantime has opted to not recommend an interim dividend. Shareholders have been told to expect progressive distributions to be reinstated next year.
The sales rate since the start of July has surged ahead to a weekly average of 0.73 per site, but management expects that to slow next year.
Consensus forecasts are for an adjusted net asset value of 901p a share at the end of December 2020, rising to 986p the same time next year.
| VISTRY (VTY) | ||||
| ORD PRICE: | 634p | MARKET VALUE: | £ 1.41bn | |
| TOUCH: | 633-635p | 12-MONTH HIGH: | 1,492p | LOW: 504p |
| DIVIDEND YIELD: | Nil | PE RATIO: | 13 | |
| NET ASSET VALUE: | 954p* | NET DEBT: | 19% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 (restated) | 472 | 72.5 | 41.9 | 20.5 |
| 2020 | 606 | -12.2 | -5.4 | nil |
| % change | +28 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £700m, or 315p a share | ||||
