Housebuilder Vistry (VTY) gained 3.6% to 943.5p as it eyed a doubling of profit in 2021 as it recovers from the pandemic.

Supporting this recovery are the measures announced in yesterday’s Budget including an extension to the stamp duty holiday and a mortgage guarantee scheme for first-time buyers.

The company posted a 2020 adjusted pre-tax profit of £143.9 million, ahead of expectations but down from £188.2 million in 2019, but expects this to more than double to £310 million this year predicated on ‘stable market conditions’.

Reflecting the confident outlook, dividends were restarted with a 20p payment for 2020.

This is underpinned by a strong start to the current year with private sales per active site per week of 0.66 in the first eight weeks up from 0.64 a year earlier. This private sales rate hit 0.78 in the last month.

A YEAR ON FROM BIG CHANGES

Formerly Bovis Homes, the business adopted the Vistry brand as part of a bigger strategic change which saw Bovis acquire Galliford Try’s (GFRD) Linden Homes and Partnerships & Regeneration units in a deal worth £1.14 billion at the start of 2020. This helps explain the near-90% drop in its net cash position from £362 million to £38 million year-on-year.

Numis analyst Chris Millington commented: ‘Forward sales stand at £1.75 billion and represent 64% of anticipated units in housebuilding and mixed tenure Partnerships for 2021 ? a very strong position at this stage of the year.’

His counterpart at Canaccord Genuity added: ‘Overall, a good set of results with strong and encouraging recent trading and outlook comments. Consensus for 2021 is unlikely to change materially today, but looks well supported.’

READ MORE ABOUT VISTRY HERE

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Issue Date: 04 Mar 2021