Vistry sets aside £20.9m for cladding retrofits

Grant Prior 4 years ago
Share

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.”

Latest news

Starmer rips up rules to ease building of nuclear reactors

Industry backs push for small modular reactors to be built where needed
49 mins ago

McAlpine tops January work league with steelworks win

Port Talbot steelworks job dominates January orders haul
1 hour ago

McLaren winning spree as £1bn turnover in sight

Major deals imminent as contractor posts stable set of results
9 hours ago

Ring road builder wanted at £4bn Somerset gigafactory

Bidders wanted for £60m job. Latest video update from site
18 hours ago

Kier seals HMP Glasgow super prison job at £684m

Deal finally signed to replace Scotland's notorious Barlinnie prison
20 hours ago

Contract winners revealed for £332m Didcot infrastructure job

Construction set to start early next year
45 mins ago

Fraudsters jailed after £22m construction tax scam

Gang sentenced after bogus payroll firm failed to pay VAT and CIS money to revenue
1 day ago

MPB clinches substructure for HS2 Curzon Street station

Contracts for station superstructure to be let in coming months
2 days ago

Flood defence spend rises to record £2.65bn over two-years

Key projects mapped as Government injects extra £250m to shore up defences
1 day ago

Turnaround strategy continues to pay off for Careys

Profits continue to rise as £50m investment plan in full swing
2 days ago

All change on £800m Eastern Highways Alliance

Octavius and Winvic sweep up all three lots in new line-up
1 day ago

Vinci bags first phase of £350m Stockport scheme

Contractor edges-out Willmott Dixon to start major mixed-used project
2 days ago

Crest Nicholson slumps to £144m loss

Incoming CEO review unearths further writedowns on fire remediation and closed divisions
2 days ago

Piling job cuts loom over safety regulator project delays

Bottleneck in high rise project approvals hits demolition and foundation firms
3 days ago

Developer Ghelamco swaps to self delivery for Battersea tower

John F Hunt no longer part of project team on 24-storey resi scheme
3 days ago

Pagabo starts renewal race for two mega frameworks

Contractors and developers asked for input on reshaping deals worth billions
2 days ago

Giant HS2 viaduct deck slide breaks records: Video

EKFB consortium oversees four-day installation
2 days ago

Ferrovial lands £230m National Grid tunnel

Work to start shortly on Grain to Tilbury electricity infrastructure upgrade
3 days ago

Tax-row tunnellers down tools on Balfour Hinkley job

Lodge allowance tax dispute hits tunnelling site
3 days ago

Go-ahead for Square Mile’s fifth tallest tower

Multiplex set to start 99 Bishopsgate job late next year
3 days ago

New £4.5bn funding model for stalled London rail schemes

Residential TIF funding offers key to unlock Bakerloo and DLR extensions
3 days ago

Speedy Hire latest to be hit by slow CP7 rail spending

Plant-hire firm flags issues with latest Network Rail spending round
3 days ago

FM Conway family chair steps away from business after Vinci deal

Joanne Conway steps away as Andrew Hansen becomes MD
3 days ago

Manchester Hotspur Press mill scheme rescued

37-storey student tower will now go-ahead
3 days ago

Watkin Jones to advance 260-room London aparthotel

Development deal for New Kent Road project
5 days ago

Plan for film studios switched to data centre cluster

Plans in for six data centre buildings in Buckinghamshire
7 days ago

Hunt for firm to deliver £75m Cambridge Civic Quarter

Work includes £41m Guildhall and £21m Corn Exchange revamps
6 days ago

Plans in for £200m Middlesbrough regen scheme

Wates is lined up to deliver landmark Gresham rental homes scheme
6 days ago

£600m Bristol shopping centre redevelopment approved

Galleries centre will be demolished for homes and offices quarter
6 days ago

Ant Yapi lands ultra prime London homes job

Prestige scheme replicates Regency mansions around nearby Regent’s Park
6 days ago

Contractor services