Housebuilder Vistry to reinstate dividend due to strong sales
Vistry Group is planning to resume shareholder payouts next year as the housebuilder said demand for new homes had remained strong despite the second England-wide lockdown.
Vistry, which was previously known as Bovis Homes, said it is on track to report full-year profit before tax at the top end of its expected range of £130m to £140m.
It said the company is “well positioned” to increase profit before tax to £310m in 2021, “assuming stable market conditions”.
The developer will reinstate its dividend next year, including paying out an interim dividend in November 2021, following “robust sales” despite the second lockdown announcement.
Since 1 July, demand for new homes has remained strong, with the company reporting a private sales rate per outlet per week of 0.67, up from 0.58 in 2019.
Meanwhile, net debt for the year is expected to be “significantly” lower than previously forecast.
Vistry chief executive Greg Fitzgerald said: ““Demand for our new homes has remained strong and we are on track to deliver profit for 2020 at the top end of our expectations.
“We are well positioned for 2021 with a record forward sales position and assuming stable market conditions, expect to see a step-up in completions delivering group profits of £310m.
“Our priority is reducing the group’s leverage while delivering on our medium-term targets.
“Cash generation has been strong, and we now expect our 2020 year-end net debt to be significantly lower than our previous expectations.
“Given this robust business performance and outlook, the board is pleased to confirm its intention to resume dividends in 2021 including an interim dividend next November, earlier than previously anticipated.”