Business
Half year results and strategy update
Half year results and strategy update.
About this update from Vistry Group Plc
[{"type":"text","content":"\n\n11 September 2023\n\nVistry Group PLC - Half year results and strategy update\nRobust financial performance, in line with expectations\nRevised strategy to fully focus on high return Partnerships model\nVistry Group PLC (the \"Group\") is issuing its results for the six-month period from 1 January 2023 to 30 June 2023 (the \"period\") and providing an update on Group strategy.\nPerformance and outlook\n· Robust financial performance in H1, in line with expectations, despite challenging market conditions\n· Performance underlines strength of Vistry's unique business model and Partnerships market resilience\n· The Board re-iterates guidance of in excess of £450m adjusted profit before tax for FY23\nStrategy update\n· Vistry has firmly established itself as the leading provider of affordable mixed tenure housing\n· Revised strategy to focus operations fully on high return Partnerships\n· Addressing the country's chronic shortage of affordable mixed tenure housing is at the core of Vistry being a responsible developer\n· The Board expects a significant release of capital as assets from the Housebuilding division are redeployed into Partnerships and the Group adopts a model of pre-selling c. 65% of plots on future schemes\n· In the medium term, the Group will be targeting a return on capital employed of 40%, revenue growth of 5 to 8 per cent. p.a., operating profit of £800m with a 12%+ operating margin\nCapital allocation\n· The Board intends to pursue a two times adjusted earnings ordinary distribution cover in respect of a full financial year, with such distributions made through either dividends or share buybacks\n· Targeting returning £1bn to shareholders over next three years from ordinary and special distributions, alongside the elimination of net debt\n· Intention to launch an initial share buyback programme of up to £55m in November 2023\nGreg Fitzgerald, Chief Executive commented:\n\"The integration of Countryside has progressed well in the first half, firmly establishing Vistry as the leading provider of affordable mixed tenure housing in the UK. The Group delivered a robust half year performance despite the challenging...