Vistry – Expecting Big Things In 2022
Vistry Group PLC (LON:VTY)’s full-year underlying revenue grew 32% to £2.7bn, reflecting increased demand across Housebuilding and Partnerships. Underlying operating profits more than doubled to £368.4m, as margins recovered from a tough 2020 which was heavily impacted by lockdowns.
Get Our Activist Investing Case Study!
Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!
Q4 2021 hedge fund letters, conferences and more
This Fund Manager Claims To Be Able To Time The Market
One piece of age-old investing advice tells investors that it’s impossible to time the market. A simple internet search reveals numerous results explaining why investors should never time the market and how impossible it is to do so. Q4 2021 hedge fund letters, conferences and more However, one fund manager claims to have the key Read More
Following a positive start to 2022, the group believes it is “well positioned to deliver a significant step up in profits and returns in 2022”
The board is proposing a final dividend of 40p, bringing the total up to 60p for 2021.
The shares rose 1.7% following the announcement.
“Today’s results should calm any concerns investors might have had about easing property demand in the wake of a hot year for the housing markets. Strong performance was expected though, with management raising guidance a few months ago, but markets seem more focused on positive outlook commentary.
2022 has got off to a flying start, with private sales rates and prices on the rise and when you add in strong forward sales figures to the mix, that starts to paint a pretty picture for a housing market that some feared may slow as mortgage rates rise along with the Bank of England’s base rate.
Vistry’s Partnerships arm, which focuses on mixed-tenure projects, adds a layer of security if the wider market starts to stagnate. The division’s been growing rapidly and one that’s expected to go from strength to strength.
Inflation continues to be cause for concern, but importantly rising prices have more than offset the impact so far. Looking forward, 2022 is expected to bring with it 6% build cost inflation as the cost of wages and materials continues to go up. But management don’t seem too concerned just yet, upping the pay-out in their proposed final dividend with a balance sheet that looks particularly healthy.”
Article by Matt Britzman, equity analyst at Hargreaves Lansdown
About Hargreaves Lansdown
Over 1.7 million clients trust us with £141.2 billion (as at 31 December 2021), making us the UK’s number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.
Updated on Mar 3, 2022, 4:10 pm