鈥淲e start 2021 as a stronger business,鈥� said Vistry chief executive Greg Fitzgerald.
Vistry Group鈥檚 pre-tax profit for the year to 31st December 2020 was 拢98.7m on revenue of 拢1,8112m. It was the company鈥檚 first year of trading since the acquisition by Bovis Homes of Galliford Try鈥檚 Linden Homes and Partnerships & Regeneration businesses for 拢1.1bn.
By comparison, in 2019 Bovis Homes made 拢174.8m pre-tax profit on revenue of 拢1,131m.
However, the board expects profits to bounce back in 2021 to pass 拢200m.
With the Covid-19 pandemic having a significant impact on first half trading, and costing the business 拢10.2m, Vistry completed 6,131 units, down 24% on 2019鈥檚 8,042 units for Bovis and Linden combined.
Despite 鈥渁 uniquely challenging year鈥�, debt incurred through the acquisition was all paid off, ending the year in a net cash position of 拢38m, down from net debt of 拢357m as at 30th June 2020.
The results include 拢20m of exceptional costs relating to the acquisition and 拢11m costs putting right 聽potential build defects in legacy buildings, including fire safety issues. Provisions totalling 拢20.9m have now been made relating to post-Grenfell cladding and fire safety fixes.
Chief executive Greg Fitzgerald said: 鈥淭he group has achieved an enormous amount in 2020, and despite the challenges I am in no doubt we start 2021 as a stronger business. We had a strong second half performance with a sustained step up in demand, firm pricing, and a robust supply chain. Vistry Partnerships made excellent progress against its growth targets of 拢1bn revenue and a 10% plus operating margin by 2022, delivering a 70% increase in H2 2020 mixed tenure completions and adjusted operating margin progression in the year to 6.7%.鈥�
He said: 鈥淲e have a strong forward sales position, with 64% of forecast units for 2021 already secured. Assuming stable market conditions, the group is confident it will more than double profits in the year, with a profit before tax of at least 拢310m.鈥�
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