Shares of Vistry Group PLC (LON: VTY) today surged 5.06% after the company revealed that demand for new houses had seen it hit record sales saying that it was on track to deliver profits near the top end of its estimates.
The homebuilding company said that it expects its pretax profits to be approximately £140 million and that it could easily grow this figure to £310 million in 2021, hence, it was considering reinstating its dividend next year.
Vistry group noted that demand for its houses remained high despite the coronavirus lockdowns, as it achieved a private sales rate of 0.67 per unit as compared to last year’s 0.58 rate.
The group reported that it had sold its projected total completions for the year amounting to 6,726 units as compared to the 5,729 units sold by the end of June.
Greg Fitzgerald, Vestry’s CEO said: “Our priority is reducing the group's leverage while delivering on our medium-term targets. Cash generation has been strong, and we now expect our FY20 year-end net debt to be significantly lower than our previous expectations.”
“Given this robust business performance and outlook, the board is pleased to confirm its intention to resume dividends in FY21 including an interim dividend next November, earlier than previously anticipated.”
Vistry share price
Vistry shares today surged 5.06% to trade at 798.5p having rallied from Wednesday’s closing price of 760p.