Vistry Group Plc · LSE:VTY
Vistry — Bovis Homes Group — FY2013 Earnings Presentation
12 slides from Vistry's earnings presentation, Feb 24, 2014
Slide 1: Bovis Homes Group PLC Final results 2013
Bovis Homes Group PLC Agenda Final results 2013 • Strategy and delivery Issued 24 February 2014 • Highlights www.bovishomesgroup.co.uk • Operations • Financials • Outlook Middleton Chase, Middleton Cheyney Frame 1 The strategy for growth The strategy for growth Land investment to increase - 95 sites
Slide 2: Growth strategy - evidence of success
Growth strategy - evidence of success Agenda 3,000 2,813 250 213 • Strategy 2,500 2,355 2,045 200 180 189 and delivery 1,901 166 172 2,000 1,803 150 • Highlights 1,500 1,000 2009 2010 2011 2012 2013 100 2009 2010 2011 2012 2013 • Operations Legal completions Average private sales price (£000) • Fina
Slide 3: Market recovering with increasing activity and home buyer confidence
Market recovering with increasing activity and 2013 multiplier effect - business first, market second home buyer confidence 2013 • New homes market showing measurable improvements Volume growth • Increased active sales outlets +19% • Market house prices increasing across many local markets, particul
Slide 4: Continued growth in active sales outlets
Continued growth in active sales outlets Ongoing improvements in sales prices • An average of 90 active sales outlets in 2013 (2012: 82) Private homes 2010 2011 2012 2013 Annual change • Pricing and margins are stronger on new sales outlets Average sales price (£k) 172.3 180.1 188.7 212.7 +13% • 22
Slide 5: Strong consented land investment in 2013
Strong consented land investment in 2013 Sites added to consented land bank in 2013 Eastham • 3,737 consented plots on 27 sites added to the land bank during 2013 Congleton - current day GDV of £841m Sandbach Yarnfield - appraisal ROCE of 24% on average based on current market sales rates Stafford T
Slide 6: Good progress promoting strategic land assets; Structure for growth
Good progress promoting strategic land assets Structure for growth Potential plots as at 31 December 2012 2013 • Two divisions, six operating regions, two emerging regions South 11,236 12,568 South Central Midlands 7,032 6,503 (Malcolm Pink) (Keith Carnegie) North 1,050 1,037 Operating Southern Cent
Slide 7: Positive underlying housing profit improvements
Positive underlying housing profit improvements Housing revenue analysis Year ended 31 December (£m) 2012* 2013 Average sales price (£k) 2012 2013 Change Land Land Housing sales Total Housing sales Total Private 188.7 212.7 +13% Social 103.9 109.8 +6% Revenue 407.7 17.8 425.5 553.0 3.0 556.0 Total 1
Slide 8: Cash generation enables continued investment
Cash generation enables continued investment Increase in net assets Year ended 31 December (£m) 2012 2013 Year ended 31 December (£m) 2012 2013 Housing receipts 395.1 596.8 Land 666.2 750.4 Construction expenditure (224.4) (345.6) Land creditors (123.8) (123.8) Overheads (40.7) (47.2) Land net of cr
Slide 9: New land investment driving future margin growth
New land investment driving future margin growth Further growth in full margin land expected 100 100 • Land acquisitions have strengthened the land bank Post downturn at cost 11% 11% 9% 17% Pre downturn at cost 80 26% 10% 80 15% Written down 63% Land bank plots 31 Dec 31 Dec 31 Dec 31 Dec 27% Land b
Slide 10: Positive current trading in 2014; 2014 outlook
Positive current trading in 2014 2014 outlook • 468 private reservations in the first seven weeks of 2014 (2013: 285), • With reservations achieved to date, excluding the potential of PRS (250 homes in 2014) and an increase of 64% with expected growth in active sales outlets: - Sales rates to date i
Slide 11: Appendices
Imputed interest on land creditors drives the financial charge Bovis Homes Group PLC Year ended 31 December (£m) 2012* 2013 Preliminary financial results 2013 Bank interest and commitment fees (1.8) (2.6) Issue cost amortisation (0.8) (0.9) Imputed interest on land (3.1) (3.1) Appendices Pension fin
Slide 12: Work in progress; Other liabilities
Work in progress Other liabilities As at 31 December (£m) 2012 2013 As at 31 December (£m) 2012 2013 Housing and site overheads 91.7 104.9 Creditors 132.2 129.0 Roads and sewers 81.0 97.4 Retirement benefit obligations 3.2 - Work in progress 172.7 202.3 Provisions 3.7 3.5 Other liabilities 139.1 132