TIDMVTY
RNS Number : 5930H
Vistry Group PLC
25 March 2020
25 March 2020
COVID-19 update
Vistry Group PLC ('the Group') is today providing an update on
COVID-19 and the measures it is taking to mitigate the impact on
its business.
During these unprecedented times, the safety, health and
wellbeing of our employees, customers, suppliers and wider society,
is our top priority and we are committed to doing all we can to
support them during these challenging times and help prevent the
spread of the Coronavirus.
Current trading and FY20 financial guidance
We have been very encouraged by the trading performance of the
Group during 2020, with increased levels of consumer demand and
positive momentum on underlying pricing. However, in the last week
we have seen a negative impact on performance as a result of
COVID-19. The Group has a strong forward sales position, with
housebuilding reservations totalling GBP1.35bn of which GBP0.9bn is
contracted. In addition, Vistry Partnerships' contracting forward
order book totals GBP0.8bn.
Excellent progress has been made with the integration of Linden
Homes and Vistry Partnerships and we are ahead of where we expected
to be at this time. As such, we are in a good position to manage
the impact of COVID-19 and the rapid, co-ordinated response
internally demonstrates how well the newly integrated business is
working together.
Following the latest Government and Public Health guidance, we
have taken the decision to close our sales offices. We will remain
in close communication with all our existing and prospective
customers remotely, with our business remaining open to taking new
reservations and progressing exchanges.
We have commenced the process of closing our construction sites,
with our priority on ensuring our sites are safe and secure. The
handover of completed units scheduled for the next two weeks will
continue where our customers would like to move in, and we will
follow strict health and safety protocols. Our site teams are
ensuring the protection of partially completed works to avoid
deterioration or loss of value during site closure, facilitating
orderly resumption as soon as possible.
Most of our office-based employees are in a position to work
from home.
We will be submitting valuations totalling c. GBP95m for work we
have completed in March to our contracting clients, mainly local
authorities and registered providers of affordable housing, noting
that the Government has issued guidance for payment.
Given the rapidly evolving situation and the dynamic UK
Government response to COVID-19, it is too early to speculate on
the full extent of the resulting impact on the Group's financial
performance for the full year and beyond. As such, the Group is
suspending all existing financial guidance until both the severity
and duration of the COVID-19 impact become clearer.
Cash preservation and FY19 second interim dividend
The Group has committed banking facilities totalling GBP750m
including GBP100m of private placement notes, with well spread
maturities out to 2027. As at 24 March the Group had GBP435m of net
debt including the private placement notes, in line with our
expectations at the time of the acquisition of the Linden Homes and
Vistry Partnerships businesses. The Group holds cash of GBP90m with
a further GBP225m of undrawn facilities available.
Notwithstanding the strength of our liquidity, the Board is
taking prudent decisions to best support the business through this
period of uncertainty, including measures to protect the Group's
cash position, liquidity and maintain a robust balance sheet.
The Board has taken the decision to postpone the second interim
dividend payment of 41.0 pence per ordinary share totalling c.
GBP60m, otherwise payable on 29 May 2020 to shareholders on the
register as at 6.00 p.m. on 27 December 2019. Whilst the Board
recognises the importance of dividends to shareholders, in the
current circumstances, it feels that it is not appropriate to
continue with this payment at this time.
The Executive Leadership Team is fully focused on managing the
business to balance the protection of profitability and
preservation of operating cash flow with the long-term needs of the
Group, and is identifying and implementing specific measures that
will increase cash generation and reduce cash outflow. All
discretionary land spend has stopped and working capital is being
very tightly managed.
The Group will continue to work on future Partnership
development opportunities, in particular with Homes England.
We also highlight the unprecedented Government commitment to
support industry through this national crisis and we will seek to
utilise this support where appropriate and available to our
business.
Greg Fitzgerald, Chief Executive commented,
"On behalf of the Board and Executive Leadership Team, I would
like to thank all our employees, subcontractors, supply chain, and
customers for their adaptability and commitment during these
difficult times. Whilst health, safety, and wellbeing are our top
priorities, decisive actions are being taken now to protect the
future prospects of the Group. I am confident that Vistry will come
through this current uncertainty in a great position to build the
high-quality new homes this country needs."
For further information please contact:
Vistry Group PLC 01675 437160
Earl Sibley, Chief Financial Officer 020 7250 1446
Susie Bell, Head of Investor Relations
Powerscourt
Justin Griffiths, Nick Dibden, Victoria
Heslop
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END
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