Vistry Group Plc · LSE:VTY
Vistry — Bovis Homes Group — FY2011 Earnings Presentation
13 slides from Vistry's earnings presentation, Feb 27, 2012
Slide 1: Bovis Homes Group PLC Preliminary financial results 2011
Bovis Homes Group PLC Agenda Preliminary financial results 2011 • Highlights • Operations Issued 27 February 2012 • Financials • Strategy www.bovishomesgroup.co.uk The Homelands, Bishop’s Cleeve Frame 1 Highlights - strong profit improvements and 2011 compound positive profit effect positioned for s
Slide 2: Bovis Homes strategy remains on track
Bovis Homes strategy remains on track Agenda 110 Profit growth 100 • Highlights 100 92 • Rebuilding volumes 90 85 85 • Operations • Higher ASP 80 73 70 66 • Financials • Increasing margins 60 • Strategy • Improving overhead efficiency 50 2008 2009 2010 2011 2012 est 2013 target Active sales outlets
Slide 3: Active sales outlets growing strongly
Active sales outlets growing strongly New southern sales outlets to drive growth • An average of 73 active sales outlets in 2011 (2010: 66) 2011 number of active sales outlets week 1 new outlets week 52 change avg weeks weeks 1-52 • Pricing, margins and sales rates are stronger on new sales outlets
Slide 4: Solid consented land investment in 2011
Solid consented land investment in 2011 Sites added to land bank during 2011 • 2,552 plots on 18 new sites added to the consented land bank in 2011 Chester - Current day GDV of £542m Wychwood - 88% located in south of England • c2,000 plots on 20 sites with terms agreed for acquisition Droitwich - c
Slide 5: Good start for 2012 during first 8 weeks
Good start for 2012 during first 8 weeks Stable but challenging market conditions Enquiries • Average active sales outlets 900 • Affordability of owning a home compared to rental is good increased by 28% to 83 (2010: 65) 850 2012 800 • Mortgage availability continues to constrain market demand • 26%
Slide 6: Housing revenue analysis
Strong underlying housing profit improvements Housing revenue analysis Year ended 31 December (£m) 2010* 2011 Average sales price (£k) 2010 2011 Change Total Excl land sales Land sales Total Private 172.3 180.1 +5% Revenue 298.6 334.8 30.0 364.8 Social 100.8 94.3 -6% Gross profit 53.4 69.5 2.7 72.2
Slide 7: Cost savings improving profit margins
Cost savings improving profit margins Imputed interest on land creditors drives the financial charge • As reported previously, construction cost base operating c12% below pre Year ended 31 December (£m) 2010 2011 downturn levels, including c20% labour savings Bank interest and commitment fees (1.6)
Slide 8: Land creditor payments; significant additional potential gross profit added
Land creditor payments Significant additional potential gross profit added Units GDV ASP Land Gross Gross 120 • The majority of the land cost profit margin No. £m £000 £m £m % creditors are payable within one year 2011 additions 2,552 542 212.4 134 137 25.3% 100 Split: £85m Southern 2,252 476 211.0
Slide 9: New land investment driving future margin
New land investment driving future margin Potential land bank utilisation 100 100 • Land acquisitions have strengthened the land bank 4% Post downturn at cost 16% Pre downturn at cost 80 42% 39% Written down Land bank plots 31 Dec 31 Dec 31 Dec 80 Land bank plots (%) 2009 2010 2011 60 60% Legal comp
Slide 10: Update on strategic growth plan
Update on strategic growth plan Strategy going forward Commitment made at start of 2011 Delivering compound effects of 110 100 100 2011 commitment 2011 result • Increased volumes 92 90 85 85 - Increased sales outlets at 85, +16% Increasing volume Sales outlet growth • Outlets grown from 66 to 80 in
Slide 11: Other assets; Work in progress
Other assets Work in progress As at 31 December (£m) 2010 2011 As at 31 December (£m) 2010 2011 Fixed assets 11.3 11.6 Housing and site overheads 88.8 88.5 Part exchange properties 11.4 16.9 Roads and sewers 82.0 77.8 Debtors 58.3 63.7 Development properties 0.2 0.2 Available for sale assets 31.1 38
Slide 12: Improving returns 2011 - 2013
Improving returns 2011 - 2013 Divisional performance - 12 months ended 31 December Scale of importance Contribution to improving ROCE 2011 - 2013 1 2 3 4 5 6 7 8 9 10 2010 2011 Units ASP (£) Units ASP (£) Increasing number of operational sales outlets South East Increasing sales rate per site Privat
Slide 13: Consented land acquisitions increase
Consented land acquisitions increase Land price index (RHS) Strategic land conversion (LHS) Filton (LHS) Consented land acquisitions (LHS) Elite Homes acquisition (LHS) 150 6,000 140 5,000 130 Land price index Plots added 120 4,000 110 3,000 100 2,000 90 1,000 80 0 70 2004 2005 2006 2007 2008 2009 2