Vistry sets aside £20.9m for cladding retrofits

Grant Prior 2 years ago

Vistry is the latest house builder to set aside cash to rectify non-compliant cladding with a £20.9m provision in its latest accounts.

The firm has identified ten buildings over 18 metres where is acted as developer and remediation work may be required.

Vistry said: “Whilst the group is not aware of liability in any of these cases, we are committed to proper consideration of any relevant case and to meeting any liability which we identify, and, in addition, to offering appropriate support in circumstances where building owners do not meet their obligations.

“We anticipate that this will give rise to financial liabilities, which we have estimated to be between £10m and £25m.

“We have brought forward provisions in the balance sheet of £9.9m, and have now increased this to £20.9m, by way of an exceptional charge to the Profit and Loss account of £11m.”

Latest accounts to December 31 2020 show a strong second half to the year following the impact of the first lockdown.

Vistry made a pre-tax profit of £98.7m from £174.8m last time on turnover up to £1,811.7m from £1,130.8m.

This year has also started strongly with sales rates ahead of 2020.

Greg Fitzgerald, Chief Executive,said: “The last four weeks have been particularly strong.

“Pricing remains firm and we see a good supply of materials and labour with minimal cost inflation.

“We have a strong forward sales position with 64% of total Housebuilding and mixed tenure units for 2021 secured and the partner delivery forward order book totals £880m.

“Assuming stable market conditions we expect to deliver a step-up in housebuilding completions in 2021 to c. 6,300 units and an improvement in adjusted gross margin to c. 22%.

“Partnerships expects to deliver significant growth in higher margin mixed tenure completions in 2021 and is on track to meet its 2022 targets of £1bn revenue and an adjusted operating margin of 10% plus.

“The group remains confident it can deliver more than double profit before tax to at least £310m.”

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