Vistry Partnerships targets 6,000 new homes per year as group posts record profits
Vistry Partnerships, the partnerships arm of the house builder formerly known as Bovis Homes, has set targets to build more than 6,000 homes per year and achieve revenues of £1bn, the group’s latest accounts have revealed.
According to the yearly accounts of Vistry Group, Vistry Partnerships has a strategy to accelerate revenue growth from the business’ 10 operating regions and expand into new areas.
Vistry Group posted record annual profits of £188.2m. The house builder said that pre-tax profit for the year had grown by 12% from the £168.1m posted for the same period last year.
It also saw an uptick in the number of homes it delivered, with the business completing 3,867 homes in the year to 31 December 2019, up by 2.9% on the 3,759 recorded in 2018. The average selling price also rose by just under £7,000 to £280,200.
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Vistry Partnerships, the part of the group that works with housing associations and local authorities to deliver regeneration schemes, is an amalgamation of Bovis’ partnerships division and Galliford Try Partnerships, which the group acquired along with Galliford’s housebuilding arm Linden Homes in a £1.1bn deal earlier this year.
The acquisition made Bovis Homes a top-five house builder, with capacity to deliver up to 14,000 new homes per year. It changed its name to Vistry Group following the deal, but the Bovis Homes and Linden Homes brand names will still be used on developments.
The annual accounts also revealed two major deals that Vistry Partnerships signed with social landlords this year – a £95m agreement with Citizen to deliver 360 new homes at Lea Castle in Kidderminster and a £63m deal with Newham Council housing company Red Door Ventures to build 182 units in the borough.
Vistry has been appointed to several other high-profile housing schemes recently developed by housing associations, including the next phase of Notting Hill Genesis’ £66m regeneration of the Aylesbury Estate.
Aster Group has also signed a joint venture deal with the partnerships business to build 1,359 homes across the south of England by 2024. Up to three-quarters of the homes will be for private sale.
Vistry Group’s revenue in 2019/20 was £1.13bn, up 6.6% from £1.06bn in 2018/19. Its return on capital employed also rose from 19.3% in 2018/19 to 22.3% in 2019/20.
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