Vistry back to 70% production capacity

This morning the firm reported that interest from housing associations and investors continues to be strong, and demand from private buyers is improving steadily.

The firm is now back to over 70% production capacity at all its 73 partnerships business sites and has returned to operation on 119 out of a total 172 private sale building developments.

But it warned that restructuring jobs cuts loomed for the business as it had taken advantage of the lockdown period to accelerate the integration of Galliford Try’s former housing business with Bovis Homes.

The anticipated headcount reductions will deliver annual savings of around £9.5m, it said this morning.

Greg Fitzgerald, chief executive said: “In these unprecedented times, the group’s performance during lockdown has been better than initially expected in respect of reservations, completions and cash management. 

“We are pleased by how effectively our site management and health and safety teams have adapted to the new operating procedures. 

“As a result, we currently have more than 5,600 operatives working safely across our developments and expect productivity to continue to increase.

“The continued strength of Vistry Partnerships throughout the past two months has proven our rationale for the acquisition, which has given us a highly resilient business underpinned by significant demand for affordable homes.”

At the private housing business virtual tours for buyers kept sales ticking through during lockdown.

Over the past eight weeks, Galliford Try reported it had taken 447 gross private reservations, resulting in 300 reservations net of cancellations.

This rate of sales has been steadily improving, with a sales rate of 0.26 over the past three weeks and pricing broadly in-line with forecasts.

Vistry said it had a strong forward sales position, with house building reservations – including Vistry Partnerships development activity – totalling £1.5bn.

updated: 20/05/2020