2021 VG HY results - Vistry Group
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HY results
2021 VG
1
HY results
2021 VG
Half year results 2021
Greg Fitzgerald Earl Sibley Graham Prothero
Chief Executive Officer Chief Financial Officer Chief Operating Officer
7 September 2021
2
Agenda
• H1 performance
• Group strategy
• Financial review
• Operational update Bovis Homes, Pear Tree Walk, Drakes Broughton Bovis Homes and Linden Homes Trenant Garden, Wadebridge
• Outlook
• Q&A
Vistry Partnerships, Gallions Place, London Linden Homes, Buckwood Leas, Houghton Regis
3
HY results
2021 VG
Excellent H1 performance
• H1 financial performance significantly ahead of expectations,
supported by successful operational integration and positive
customer demand
• Group adjusted revenue increased to £1.3bn, 4% ahead of
proforma H1 19
• Housebuilding delivered significant margin improvement with
H1 21 gross margin of 22.0% excluding land sales
• Partnerships driving rapid growth in higher margin mixed tenure
adjusted revenues, increasing to £164m (H1 20: £88m) in H1 21
Linden Home, Sandrock, Exeter
• Partnerships adjusted operating margin increased to 9.1%
(H1 20: 4.0%), well on track for 10%+ in FY 22
• Adjusted PBT increased to £166m (H1 20: £10m)
• Strong cash generation with H1 21 net cash of £32m as compared
to H1 20 net debt of £357m
• Group ROCE increased to 19.4% in H1 21 (FY 20: 14.4%) with
Partnerhips ROCE well in excess of 40%
• Interim dividend of 20p per share
Bovis Homes, The Hamlets, Milborne Port
4
HY results
VG
Excellent H1 performance 2021
• Business in great shape with further operational
improvements in the year to date
• HBF Quarterly 8-week Customer Satisfaction score
increased to 92.6% (5-star)
• Improvement in build quality metrics for Housebuilding
and Partnerships in the period (RIs, CQR)(1)
• Increase in size of Group land bank with 5,642 plots
Bovis Homes, Pemberton Park, Witchford
secured across 28 developments in H1 21 and all land
for forecast FY 22 completions in place
• Acquired first two sites jointly between Housebuilding
and Partnerships, leveraging the mix of business models
• Employee engagement score increased to 8.1
(Jan 21: 7.9), ahead of industry benchmark (7.6)
(1) Reportable items (RIs) identified through the NHBC plot specific inspection process and
Construction Quality Review (CQR), the independent NHBC review of the overall site Bovis Homes, Blackmore Meadows, Stalbridge
5
HY results
VG
One Vistry - uniquely positioned for sector leading returns 2021
Maximising strengths and opportunities from combination of
Housebuilding and Partnerships assets
• Strong market position and capability across all housing tenures
• Leading provider of high demand, high growth affordable housing
• Strategic land capability, maximising returns on larger multi
tenure developments
• Multiple brands, giving broad market reach and higher absorption rates
• Greater resilience to cyclicality of housing market
Targeting sector leading ROCE in the medium term Building better together
6
HY results
VG
Vistry Housebuilding 2021
• Business is in great shape to deliver increased returns - Medium term
operating well across all areas Completions c. 8,000 units(1)
• All 13 regional businesses at 5-star HBF Customer Gross margin 25%
Satisfaction rating ROCE 25%
• Operating structure set to deliver controlled volume
growth to c. 8,000 units
• Strengthened balance sheet reduces reliance on JVs
going forwards
• Focused on increased delivery from higher margin
strategic land, targeting >30% of completions from
strategic land in the medium term
• Targeting Housebuilding gross margin of 25% in the
medium term, with increase to c. 23% in FY 22
Linden Homes, Judith Gardens, Sawtry
• Increased profitability and balance sheet efficiency
driving ROCE to 25% in medium term (1) Including 100% of JV completions
7
HY results
VG
Vistry Partnerships 2021
• 5-star HBF Customer Satisfaction Rating FY 22 Medium term
• Continued rapid growth in higher margin Adjusted revenues £1bn+ 10-15 % growth p.a.
mixed tenure revenues Operating margin 10%+ 12%+
• Clear trajectory to deliver c. £1.6bn revenues ROCE 40%+ 40%+
from Partnerships in 5 years
• Investing more than £100m in land for mixed
tenure development in both FY 21 and FY 22
• Focused on further leveraging capabilities
within Group, particularly strategic
land capability
• Firmly on track to hit Partnerships operating
margin target of 10%+ in FY 22, increasing to
12%+ in the medium term
Vistry Partnerships, Royal Albert Wharf, London
• ROCE already well in excess of 40%
8
HY results
VG
Sustainability 2021
•
Group’s purpose is to deliver sustainable homes and
communities across all sectors of the UK housing market
•
Sustainability strategy, launched in 2021, focused on
three priority areas: Operations, Homes & Communities
and People
•
As a leading provider of affordable housing, Vistry
is committed to significantly increasing future
affordable output
• Committed to science based carbon reduction targets Vistry Partnerships, Zero Carbon Home, Europa Way, Warwick
required to limit warming to 1.5⁰C
• Clear roadmap to achieving net zero carbon homes - 54
zero carbon homes being delivered in FY 21
9
HY results
VG
Strong outlook 2021
•
Customer interest and sales remain positive into
the second half
• Strong Group forward sales position of £3bn
- 9
6% of forecast FY 21 Housebuilding and
Partnerships mixed tenure units secured
•
Supply chain issues being well managed with
cost increases being more than offset by house Linden Homes, Twigworth Green, Twigworth
price growth
• Increased our expectations for FY 21 adjusted
profit before tax to c. £345m, 5% ahead
of consensus(1)
• Expect FY 21 month-end average net debt to beHY results
2021 VG
Financial review
Earl Sibley
Chief Financial Officer
11HY results
VG
Summary of Group results 2021
Adjusted basis unless otherwise stated (£m)(1) H1 20 H1 21 Change
Revenue 660.9 1,259.4 +91%
Gross profit 84.7 248.0 +193%
Operating profit 21.2 175.5 +728%
Operating margin 3.2% 13.9% +10.7ppts
Profit before tax 10.3 166.1 +1,513%
Reported (loss)/profit before tax (12.2) 156.2 -
Reported (LPS)/EPS (pence per share)(2) (5.3) 54.8 -
Net (debt)/cash(3) (357.3) 31.6 -
Note: (1) Group financials are shown on an adjusted basis to include the proportional contribution of the joint ventures. Gross profit includes
other operating income. Operating profit and profit before tax are shown before exceptional expenses of £2.8m (H1 20 £15.4m) and
amortisation of acquired intangibles of £7.1m (H1 20: £7.1m) in H1 21
(2) H1 20 LPS has been restated for the bonus share issue in H2 20
(3) H1 21 net debt includes £106.9m (H1 20: £107.8m) related to USPP notes payable, which is inclusive of £6.9m (H1 20: £7.8m) fair value
of future interest payments
12HY results
VG
Proforma results Proforma(1)
2021
Adjusted basis unless otherwise stated (£m) H1 19 H1 21 Change
Housebuilding completions(2)
- Private 2,199 2,294 +4%
- Affordable 1,172 832 -29%
Total Housebuilding completions 3,371 3,126 -7%
Housebuilding revenue £870m £869m -
Partnerships completions(2)
- Mixed tenure 574 895 +56%
- Partner delivery 1,140 1,330 +17%
Total Partnerships units 1,714 2,225 +30%
- Mixed tenure £94m £164m +75%
- Partner delivery £244m £227m -7%
Total Partnerships revenue £338m £391m +16%
Total Group revenue £1,208m £1,259m +4%
Total Group units 5,085 5,351 +5%
Note: (1) Proforma completions and revenue in 2019 calculated using published data for Linden Homes and Vistry Partnerships and represent the Vistry
Group H1 period of 1 Jan 2019 to 30 June 2019. No further proforma information is provided as the previously published data is not considered to
be comparative due to the need to align accounting policies
(2) C ompletions include 100% of JVs
13HY results
VG
Housebuilding financials 2021
Adjusted basis unless otherwise stated (£m) H1 20 H1 21 Change
Total completions(1) 1,235 3,126 +153%
Revenue 349.4 868.7 +149%
Gross profit 49.1 189.0 +285%
Gross margin 14.1% 21.8% +7.7ppts
Operating profit 8.5 151.2 1,679%
Operating margin 2.5% 17.4% +14.9ppts
TNAV(2) 1,693.0 1,504.8 -11%
•
Housebuilding adjusted gross margin excluding land sales of 22.0% in H1 21
Note: (1) Including 100% of JV completions
(2) Tangible net assets value is calculated as net assets less goodwill, acquired intangible assets and net cash/debt
14HY results
VG
Housebuilding metrics 2021
Private completions Affordable completions Average active sites
2,294 inc JVs of 441 832 inc JVs of 163 145
H1 20: 975 inc JVs of 145 H1 20: 260 inc JVs of 24 H1 20: 171
Private ASP Affordable ASP Total ASP
£351k inc JVs at £349k £161k inc JVs at £156k £301k inc JVs at £297k
H1 20: £332k inc JVs at £356k H1 20: £158k inc JVs at £182k H1 20: £294k inc JVs at £331k
PX % of total completions Affordable % of total completions HTB % of total completions
5% 27% 25%
H1 20: 10% H1 20: 21% H1 20: 30%
Note: Completions include 100% of JVs. ASPs include the proportional contribution of JVs except where JV ASPs are stated
15HY results
VG
Partnerships financials 2021
Adjusted basis unless otherwise stated (£m) H1 20 H1 21 Change
Total mixed tenure completions(1) 489 895 +83%
Revenue 311.4 390.6 +25%
Operating profit 12.4 35.5 +186%
Operating margin 4.0% 9.1% 5.1ppts
TNAV(2) 64.1 65.9 +3%
• Strong progression on adjusted operating margin from 8.7% in H2 20 to 9.1% in H1 21
• H1 21 ROCE of 99%, well in excess of 40%+ medium term target
Note: (1) Including 100% of JV completions
(2) T angible net assets value is calculated as net assets less goodwill, acquired intangible assets and net cash/debt
16HY results
VG
Partnerships metrics 2021
Mixed tenure completions Mixed tenure adjusted revenue Mixed tenure ASP
895 inc JVs of 463 £164m inc JVs at £67m £251k inc JVs at £293k
H1 20: 489 inc JVs of 190 H1 20: £88m inc JVs at £27m H1 20: £222k inc JVs at £286k
Partner delivery equivalent units Partner delivery revenue Mixed tenure average active sites
1,330 £227m 32
H1 20: 1,310 H1 20: £223m H1 20: 26
Note: Completions include 100% of JV. ASPs include the proportional contribution of JVs except where JV ASPs are stated
17HY results
VG
Procurement 2021
• Significant service improvements and synergy being
delivered from One Vistry approach
• Centralised procurement delivering benefits of scale
with c. 90% of materials procured / specified centrally
• Strong strategic partnerships ensuring mitigation of
current cost increases
• Dealing with current supply challenges
- Short lines of communication
- Transparent approach
- Agile response centrally and by local teams supports
improved service levels to enlarged group
• Mix of solus and preferred suppliers adopted for most
effective route to market
• Cost increases have been more than offset by house
price inflation in the year to date Vistry Partnerships
18HY results
Whiteley Court
VG
Land activity in year to date Bishop Auckland
2021
Land acquired Sites Plots
Housebuilding 16 3,681
Littleborough Hanging Heaton
Partnerships 4 846
Louth
Conditionally contracted
Housebuilding 4 462 Ruddington
Partnerships 4 653 Pendleford
Oundle
Great Haddon
Wymondham
Huntingdon
Littleport
Strategic delivery Overstone
Shottery
Cranfield
Options contracted 6 4,660 Long Marston Milton Keynes
Meppershall
Aylesbury
Transferred to owned 4 418 Lyneham
Hambrook
Reading
Maidstone
• Land market dynamics remain stable East Grinstead
Alderbury Crowborough Horam
- Continued good supply of opportunities Fair Oak North Whiteley Hailsham
- Some scope to increase deferred payment terms Exeter Bridport
Housebuilding sites
Partnership mixed tenure sites
• Housebuilding plots in YTD acquired at average
Strategic options
gross margin and ROCE of at least 25%
19HY results
VG
Land bank 2021
Housebuilding Partnerships
30 June 2020 2021 2020 2021
Owned 20,942 20,950 3,281 5,715
Controlled - 1,993 - 971
Total owned and controlled 20,942 22,943 3,281 6,686
Joint venture owned 9,589 8,953 4,436 3,183
Joint venture controlled - - - 268
Total joint venture owned and controlled (100%) 9,589 8,953 4,436 3,451
Total land bank 30,531 31,896 7,717 10,137
Land bank years(1) 4.7 yrs 4.9 yrs 4.1 yrs 5.4 yrs
Average plots per site(1) 138 147 151 161
Average sales price(2) £313k £302k £264k £272k
Average land cost per plot(2) £51k £51k £29k £23k
Plot cost / ASP(2) 16% 17% 11% 8%
Average gross margin(2) 24.2% 24.5% 18.1% 19.1%
Note: (1) Land bank years calculated on total land bank
(2) Shown including proportional contribution of JVs
20HY results
VG
Strategic land 2021
As at 30 June 2021 Total sites Total plots
•
Increased focus on maximising strategic land opportunity
0 - 150 plots 38 2,821
• Strong in-house strategic land capability
150 - 300 plots 46 10,258
• Housebuilding and Partnerships working together 300 - 500 plots 17 6,592
•
Vistry’s reach across all housing tenures enhances returns 500 - 1,000 plots 16 10,010
on larger strategic sites 1,000 + plots 6 8,483
•
On average, strategic land delivers an incremental Total 123 38,164
150 – 300bps on gross margin Planning agreed 13 5,963
•
Forecasting c. 4,000 plots p.a. transfer from strategic land Planning application 9 2,351
in coming years Ongoing promotion 101 29,850
•
Targeting >30% of completions from strategic land in the Total 123 38,164
medium term
As at 30 June 2020
Total 122 32,831
21HY results
VG
Summary balance sheet 2021
(£m) 30 June 20 31 Dec 20 30 June 21
Goodwill 548.4 547.5 547.5
Intangible assets 151.8 143.6 136.6
Goodwill and Intangibles 700.2 691.1 684.1
Investment in joint ventures 158.4 145.2 152.0
Amounts due from joint ventures 346.0 323.6 328.4
WIP and Stock 895.6 759.0 822.6
Land 1,105.4 1,077.6 1,135.7
Land creditors (372.3) (323.2) (376.0)
Other assets 320.8 294.8 310.0
Other liabilities (678.0) (810.8) (803.4)
Net (debt)/cash (357.3) 38.0 31.6
Tangible net assets 1,418.6 1,504.2 1,600.9
Net assets 2,118.8 2,195.3 2,285.0
22HY results
VG
Cashflow waterfall 2021
1 Opening net cash (1 Jan 2021)
£1,127.0m (£990.9m)
2 Development receipts
3 Construction and overheads expenditure
4 Land expenditure
5 Cashflows from JVs
6 Other trading inflows
7 Dividends paid
(£171.3m)
8 Non-trading net outflows
£76.4m (£44.3m) 9 Closing net cash (30 June 2021)
(£17.1m)
£38.0m £31.6m
£13.6m
1 2 3 4 5 6 7 8 9
23HY results
VG
Gearing and capital allocation 2021
• Targeting net cash of c. £225m as at 31 December 2021 and average
Leverage
month-end net debt of less than £125m for FY 21
• No capital constraints to invest in land delivering min. 25% ROCE for
Housebuilding and min. 40% ROCE for Partnerships
• Maintain 3.5 to 4.0 years Housebuilding land bank to support controlled
Investment
volume growth to c. 8,000 units
• Investment in land to support on-going rapid growth in the less capital
intensive Partnerships mixed tenure
• Acceleration of dividend to two times cover in FY 21
Dividends
• Maintain sustainable two times cover through the cycle
• Surplus capital to be returned to shareholders through either share
Capital return buyback or special dividend
• Board to agree best method at time considering all factors
24HY results
2021 VG
Operational update
Graham Prothero
Chief Operating Officer
25HY results
VG
Vistry Housebuilding – in great shape to deliver increased returns 2021
Housebuilding Target
• S
tep change in sales rate driven by improved product Sales rate 0.69 -
range and dual branding Customer satisfaction
• 5
-star Customer Satisfaction Rating across all - 8 weeks 93% 93%
13 Housebuilding business units - 9 months 73% 76%
• Improving trend on 9 months customer satisfaction Build quality
- RIs 0.18 4.0
• H
igh quality build processes embedded across
Employees
the business Employee satisfaction 8.4 >7.0
• H
ighly engaged workforce with Vistry an employer Staff turnover 17.8% 90%
Note:
HBF 8 weeks customer satisfaction for 12 months to 31/12/2020, HBF 9 months customer satisfaction for completions from October 2019 to September 2020 .
Reportable items (RIs) identified through the NHBC plot specific inspection process. Construction Quality Review (CQR) is an independent NHBC review of the overall site. RIs and CQR for 6 months
to 30/6/2021.
Average weekly private sales rate per site for 6 months to 30/6/2021. Peakon employee engagement survey in July 2021. Staff turnover for 12 months to 31/7/2021
26HY results
VG
Vistry Partnerships - delivering strong growth 2021
in revenues and margin
•
Operating structure set to deliver rapid growth in higher Operating margin(1)
margin mixed tenure revenues
•
Currently active on 35 mixed tenure sites, up from 27 at end
of FY 20, with 4 new sites to open in H2 10
•
Land investment of at least £100m in FY 21 and FY 22 8
10.0%+
- Mixed tenure future revenue in land bank of £2.9bn 6 9.1%
•
Leveraging benefits of being part of larger group, 4 6.7%
particularly strategic land 2 5.4%
•
Plans to increase future operating capacity 0
FY 19 FY 20 H1 21 FY 22
- New business unit at Thames Valley to contribute from (Proforma) (Forecast)
FY 22 and planned new business units in South East & (1)
Adjusted operating margin including proforma contribution of
Midlands from FY 23 JVs and excludes Group costs
•
Investing in our future leaders to sustain high quality
management across growing business
27HY results
VG
Sustainability is at the core of our business 2021
• Our purpose is to deliver sustainable homes and communities across all sectors of the
UK housing market
• O
ur strategy focuses on three key areas of Our People, Our Operations, and Our Homes
& Communities
Our Homes &
Our People Our Operations
Communities
£ • Jobs and training • Waste and resources £ • Placemaking
£
£ BONUS£ BONUS
• Health and wellbeing • Climate change • Ecology
• Diversity and inclusion • Building standards
£
£ £ • £Affordable housing
£
28HY results
VG
Sustainability - Our People 2021
•
Employee engagement further improved to 8.1, ahead
of industry benchmark at 7.6
•
Developing Employee Value Proposition - committed
to attracting and retaining the best talent
Tea with Teagle
•
Significant investment in people development -
Leadership Development, eLearning, Mentoring Mental Health Awareness Week
•
£ £
Investment in early careers through skills academies,
BONUS
“I honestly think that nature
is the biggest cleanser.
apprenticeships, trainee programmes When you’re outdoors, it
really helps to take your
mind off things.”
•
Massive push on communications - up, down and across Alex Perkins
Group PR Photographer & Videographer
Connect with
the organisation Keeping-up with Keith
#ConnectwithNature
•
Employee wellbeing and mental health remains a top
£ £
priority - range of initiatives in place
•
Agile working policy highly effective
•
A new D&I Committee focusing on our employee journey
and Peakon feedback
29HY results
VG
Sustainability - Our Operations 2021
• Committing to targets consistent
with 1.5 degrees
• Signed up to Science Based
Targets Initiative
• Precise reductions to be
confirmed in 2022, with 2021
as our base year £ BONUS
£
£ £
30HY results
VG
Sustainability - Our Homes & Communities 2021
• Using our social value toolkit to enhance
regeneration projects
• Biodiversity Working Group developing an
action plan for net gain
• Assessing climate risk with the University
of Exeter
• Completing 54 homes achieving net zero
£
regulated carbon emissions BONUS
£
£ £
31HY results
VG
Sustainability - Project 2025 2021
• Project 2025 will evolve the future Vistry group
standard house type portfolio
• Meeting the future needs and desires of our customers,
responding to the climate emergency and enhancing quality
• Commitment to the Government’s policy roadmap
to net zero
£
• Future Homes Standard with interim changes to be
BONUS
£
applied in June 2022 (Part L), 2025 and beyond
including overheating, ventilation, water efficiency
and embodied carbon
• Integration of M4 category (2) and (3) adaptable
dwellings standards and Nationally Described
Space Standard
£
• Provide space for low-carbon technologies, future
proofing for new products
£
• Incorporate consumer and supply chain feedback
32HY results
VG
One Vistry - land buying advantage 2021
Great Haddon Vistry Partnerships Vistry Housebuilding
•
A new sustainable urban extension to the south Mixed tenure units 507 Total units 992
west of Peterborough Affordable rent 50% Affordable 16%
Private rented 25% Private ASP £297k
•
Collaboration between Housebuilding and Gross margin c. 25%
Open market 25%
Partnerships, leveraging the Group’s unique ROCE c. 28%
% presold (units) 73%
capability to maximise returns on larger mixed
66% Vistry Group
tenure developments % presold value
Total units 1,499
Gross margin c. 17%
•
Housebuilding and Partnerships are planning to Gross margin c. 23%
use three national brands ROCE c. 40% ROCE c. 33%
33HY results
VG
One Vistry - Maximising benefits from multiple brands 2021
•
‘Brand Book’ and guidelines clearly
establish how our products and brands
complement each other
•
Plan to launch third national brand in the
next 12 months
•
Vistry’s Hub sales approach allows our
sales advisors to match customers to
the right product and brand for them
•
Recently launched Futurium offers our
customers a virtual ‘try-on’
•
Our wide product range enables
best match and a broad market reach
34HY results
VG
One Vistry - One customer journey Vistry Customer Journey
2021
•
New single Vistry Customer Journey launched in Prospecting Reservation Exchange Completion Warranty
H1 21 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
•
Used across all Vistry brands and includes 16 Build
clearly defined steps Sales & Marketing
•
Multiple points of contact during the build phase 7 Days 7 days from meet
7 -14 days from move in
with all customers offered; Meet the Builder,
Customer Services
the builder
or prior to roof
customer inspections during the build and SALE
S HBF 2YR
SOLD 6
before handover, and a 6 Month Review
MONTHS
WARRANTY
Making a Reservation Meet the Select / Enhance Home Visit CML Customer Home Final Sales Move in Day Courtesy Visit Customer 8 week HBF 6 month 9 month 2 Year
connection Builder ready Demonstration Check Service Review Review Review warranty end
1 st Fix Includes HQL
sign-off Inspection welcome
Day before 8 weeks from 6 months 9 months 2 years from legal
•
Home Select / Enhance offers personalisation
completion move in from move in from move in completion
Pre completion
courtesy call
and upgrades with customer able to visualise To support this commitment and provide clarity and consistency, we have developed a Vistry Journey, which provides
the framework to build on and the high-level steps required for us to work together and understand the part that we
new home all play to make this happen.
•
6 click mobile reservation process used by 70%
of customers in year to date, with over 35% of
deposits taken outside of 9am to 6pm
•
Customer updates on build progress via
web-based customer portal
35HY results
2021 VG
Outlook
Greg Fitzgerald
Chief Executive Officer
36HY results
VG
Market review 2021
• Strong market trends in year to date • Housebuilding remains a top priority for
- Sales rales consistently ahead of historic norms Government
and 17% ahead of proforma 2019 (YTD) - Participating in trial of Government First
- House price inflation across all geographies Homes Scheme
- Prospect levels rising towards end of summer - Only listed developer to achieve Homes
England Partnership status with £83m grant
• No significant impact on demand from changes
to Help to Buy and end to stamp duty holiday • Market for affordable housing and PRS continues
unabated, with strong demand and funding
- Heylo providing good alternative to Help to Buy
• Higher LTV is becoming more available
- Participating in Newcastle Building Society’s
95% LTV mortgage indemnity scheme,
Deposit Unlock
37HY results
VG
Strong outlook 2021
• C
ustomer interest and sales remain positive into the
second half
• Strong Group forward sales position of £3bn
- 9
6% of forecast FY 21 Housebuilding and Partnerships
mixed tenure units secured
• Supply chain issues being well managed with cost
increases being more than offset by house price growth
• Increased our expectations for FY 21 adjusted profit Linden Homes, Boorley Park, Botley
before tax to c. £345m, 5% ahead of consensus(1)
• Expect FY 21 month-end average net debt to beHY results
2021 VG
Q&A
39HY results
VG
Disclaimer - important notice 2021
• Certain statements in this presentation are forward looking statements.
• Forward looking statements involve evaluating a number of risks, uncertainties
or assumptions that could cause actual results to differ materially from those
expressed or implied by those statements.
• Forward looking statements regarding past trends, results or activities should
not be taken as a representation that such trends, results or activities will
continue in the future.
• Undue reliance should not be placed on forward looking statements.
40HY results
2021 VG
Appendices
41HY results
VG
Forward sales 2021
Forward sales (£m) 30 June 2021 3 Sept 2021
Housebuilding
- Private 621 713
- Private JVs (100%) 239 276
- Affordable 485 456
- Affordable JVs (100%) 111 106
Total Housebuilding 1,456 1,551
Partnerships
- Mixed tenure 200 221
- Mixed tenure JVs (100%) 191 306
Total mixed tenure 391 527
Partner delivery 890 890
Total Group 2,737 2,968
42HY results
Bridge between adjusted and reported results by Segment and Group 2021 VG
Housebuilding Partnerships Group items Total
Period ended 30 June 2021 £m £m £m £m
Revenue 779.0 323.7 - 1,102.7
Share of joint venture revenue 89.8 66.9 - 156.7
Adjusted revenue 868.8 390.6 - 1,259.4
Gross profit 159.3 42.4 - 201.7
Share of joint venture gross profit 16.5 10.2 - 26.7
Other operating income 13.2 6.4 - 19.6
Adjusted gross profit 189.0 59.0 - 248.0
Operating profit / (loss) 133.6 19.6 (14.1) 139.1
Share of joint venture operating profit 16.3 10.2 - 26.5
Exceptional items - - 2.8 2.8
Amortisation of acquired intangibles 1.4 5.7 - 7.1
Adjusted operating profit 151.2 35.5 (11.3) 175.5
Adjusted gross margin 21.8% 15.1% - 19.7%
Adjusted operating margin 17.4% 9.1% - 13.9%
43HY results
VG
Net finance costs 2021
(£m) H1 20 H1 21
Net bank interest and commitment fees (7.9) (4.5)
Issue cost amortisation (0.7) (0.9)
Imputed interest on land (3.4) (2.6)
Pension financing 0.1 0.1
IFRS 16 interest on leases (0.5) (0.5)
Interest receivable on JV loans 7.2 11.4
Total (5.2) 3.0
44HY results
VG
Work in progress and other assets 2021
(£m) 30 June 2020 31 Dec 2020 30 June 2021
Stock (including show homes) 57.6 44.2 57.5
Housing WIP infrastructure WIP 811.2 689.1 750.6
Part exchange 26.8 25.6 14.5
Total work in progress 895.6 759.0 822.6
Debtors
- Help to Buy 5.1 7.3 3.9
- HA 63.2 75.2 90.5
- Contracting assets 85.7 66.2 70.8
- Prepayments and accrued income 31.0 34.7 34.2
- Other receivables 56.8 41.6 45.5
Right of use assets 36.2 38.5 34.3
Deferred tax asset - - -
Corporation tax asset 14.5 14.4 -
Other assets 28.3 16.9 30.8
Total other assets 320.8 294.8 310.0
45HY results
VG
Other liabilities 2021
(£m) 30 June 2020 31 Dec 2020 30 June 2021
Creditors 421.4 517.5 564.9
Contract liabilities 81.6 96.4 72.9
Deferred income 87.8 87.5 67.6
Other tax and social security 26.9 9.2 2.2
Lease liabilities 39.7 42.2 37.3
Corporation tax liability - - 1.4
Deferred tax liability 13.4 17.6 23.5
Provisions 7.2 40.4 33.6
Other liabilities 678.0 810.8 803.4
46HY results
VG
Land creditor payment profile 2021
400
At 30 June 2021
£378.7m
At 31 Dec 2020
£329.5m
300
200
£m
£211.2m
£182.4m
100
£37.5m
£100.6m
£98.5m
£17.2m
£15.3m
£17.1m
£9.3m
£6.8m
£7.5m
£4.8m
0
years Total
Note: The land creditor payments profile is on an absolute cash basis. Balance sheet creditors figure of £376.0m as at 30 June 2021 is on an IFRS accounting basis.
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