Vistry Group Plc · LSE:VTY
Vistry — Bovis Homes Group — H1 2014 Earnings Presentation
12 slides from Vistry's earnings presentation, Aug 18, 2014
Slide 1: Interim financial results 2014 highlights
Bovis Homes Group PLC Agenda Interim financial results 2014 • Highlights • Strategy • Financials • Summary Issued 18 August 2014 www.bovishomesgroup.co.uk Frame 1 Material profit growth with shareholder returns accelerating Strong operational progress in H1 2014 Profit before tax (£m) Robust financi
Slide 2: H1 2014 compound positive effect on profit; improving market conditions
H1 2014 compound positive effect on profit Improving market conditions H1 2014 • New homes market showing robust improvements in activity and home buyer confidence Volume growth • Increase in legal completions +54% x • Affordability of owning a home compared to rental remains good Increase in averag
Slide 3: Updated strategic plan to deliver optimised growth and returns
Updated strategic plan to deliver optimised growth and returns Strategic plan set with market backdrop in mind • Aiming to deliver market leading performance over the cycle from long term land • Housing cycles have historically been long UK HPI movements investment with a focus on building and selli
Slide 4: Growing to an optimal scale
Focus on traditional housing sites continues to improve mix Growing to an optimal scale • The mix change continues to be 100 • Decision making and control environment aims: reflected in the legal completion 20% - to make high quality business choices make up 32% 30% 80 39% - in an agile manner • The
Slide 5: Continued strong conversion of strategic land
Continued strong conversion of strategic land Strategic land critical to delivering superior returns Potential plots as at 31 Dec 2013 30 Jun 2014 • Underpinning land investment through the cycle will be a healthy contribution from strategic land South 12,568 12,283 16% • c3,000 plots across 15 site
Slide 6: Summary of Group results
Agenda Summary of Group results • Highlights Six months ended 30 June (£m) 2013 2014 Change Revenue 184.4 322.1 +75% • Strategy Gross profit 42.4 79.8 +88% • Financials Administrative expenses (21.9) (28.6) +31% • Summary Operating profit 20.5 51.2 +150% Finance cost (2.0) (1.9) Share of equity acco
Slide 7: Housing gross margin progression
Housing gross margin progression Market effects on sales prices and construction costs H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H1 2013 H2 2013 H1 2014 Revenue 157.1 250.6 183.2 369.8 315.1 Sales price 188.5 198.4 210.0 Sales price per sq ft 196.4 201.3 213.7 Revenue 100.0% 100.0% 100.0% 100.0% 100.0
Slide 8: Growing gross profit potential from land bank
Growing gross profit potential from land bank Consented Revenue ASP Gross Gross Plots profit margin £m £000 £m % 2012 additions* 2,651 561 207.5 146 26.0% 31 December 2012* 13,776 2,641 191.7 600 22.7% 2013 additions* 3,737 841 225.0 216 25.7% 31 December 2013* 14,638 3,007 205.4 727 24.2% H1 2014 a
Slide 9: Post downturn land now driving returns; 2014 outlook
Post downturn land now driving returns Agenda 100 Post downturn • Highlights 11% 10% 9% at cost 23% • Strategy 26% Pre downturn 13% at cost 80 36% 16% • Financials 27% Written down • Summary Legal completions (%) 60 • Launch of newly acquired sites 38% will deliver increasing percentage of higher ma
Slide 10: Conclusion and disclaimer
Conclusion Disclaimer - important notice • Outlook for 2014 looks very positive with strong earnings growth expected Certain statements in this presentation are forward looking statements • Growth delivered by land investment Forward looking statements involve evaluating a number of risks, - 120 con
Slide 11: Improving sales prices; financial charge; other assets
Improving sales prices Financial charge Private homes (excluding PRS) 2011 2012 2013 H1 2013 H1 2014 Change Six months ended 30 June (£m) 2013 2014 Average sales price (£k) 180.1 188.7 212.7 200.2 239.5 +20% Bank interest and commitment fees (0.9) (1.6) Average sales price per sq ft (£) 175.7 187.5
Slide 12: Other liabilities
Other liabilities As at (£m) 30 June 2013 31 Dec 2013 30 June 2014 Creditors 127.0 129.0 172.6 Provisions 3.3 3.5 3.5 Other liabilities 130.3 132.5 176.1 Frame 44