Vistry Group Plc · LSE:VTY
Vistry — Bovis Homes Group — H1 2015 Earnings Presentation
9 slides from Vistry's earnings presentation, Aug 17, 2015
Slide 1: Half year results 2015
Bovis Homes Group PLC Agenda • Highlights Half year results 2015 • Financials 17 August 2015 • Strategy • Summary www.bovishomesgroup.co.uk The Fairways, Leamington Spa Frame 1 Growth strategy on track Strong investment continues to drive growth Profit before tax (£m) Robust financial performance Si
Slide 2: Summary of Group results
Agenda Summary of Group results • Highlights Six months ended 30 June (£m) 2014 2015 Change Revenue 322.1 350.7 +9% • Financials Gross profit 79.8 88.1 +10% • Strategy Administrative expenses (28.6) (33.8) +18% • Summary Share of profit of Joint Ventures 0.1 1.7 Net profit 51.3 56.0 +9% Finance cost
Slide 3: Housing gross margin progression
Housing gross margin progression Market effects on sales prices and construction costs H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H1 2014 H1 2015 Revenue (£m) 183.2 369.8 315.1 472.7 342.5 Sales price 210.0 222.3 Sales price per sq ft 213.7 217.8 Sales price (private homes excl. PRS) 239.5 264.2 Revenu
Slide 4: Record consented land investment in H1 2015
Record consented Consented land investment land investment in H1 2014 in H1 2015 Growing gross profit potential from land bank Consented Revenue ASP Gross Gross • 2,687 consented plots added Plots profit margin £m £000 £m % to the land bank during H1 2015 across 15 sites 2013 additions* 3,737 841 22
Slide 5: Post downturn land now driving returns
Post downturn land now driving returns Agenda 100 3% Post downturn • Highlights 11% 10% 9% at cost 10% 26% 23% • Financials Pre downturn 17% 13% at cost 80 • Strategy 27% Written down • Summary Legal completions (%) 60 38% • Launch of newly acquired sites is delivering increasing percentage 58% of h
Slide 6: Mortgage lending is supporting activity
Housing demand and land supply Mortgage lending is supporting activity UK mortgage approvals (Bank of England) Affordability • Household formation continues to run Annual household growth and Net stock additions (England) 90,000 7 60 Source: Halifax ahead of new housing numbers 300,000 80,000 6 50 7
Slide 7: Improving returns on new land investments
Improving returns on new land investments Strategy delivery in land bank Portfolio housing range 2009 2010 2011 2012 2013 2014 H1 2015 Greenfield land Traditional housing (private exc Sherford) Land plots added 353 3,690 2,552 2,651 3,737 7,300 2,687 Expected gross margin % 24.1% 25.5% 25.3% 26.0% 2
Slide 8: Evolving Group structure to manage future growth
Evolving Group structure to manage future growth Managing the growth 2016 regional split • Management structure strengthened to deliver controlled growth • Current structure of six David Ritchie • Promotion of Keith Carnegie to Chief Operating CEO regions will expand to eight Officer with effect fro
Slide 9: A strong 2015 to date and 2015 outlook
A strong 2015 to date 2015 outlook • Strategy and performance on track • Group is on track to deliver expected volume of legal completions in 2015 - greater number of average sales outlets • Record volumes at half year and strong sales pipeline - robust sales rate • 3,768 sales achieved for 2015 leg