Strong results for Vistry and Persimmon

Vistry and Persimmon has announced final results for 2021 today, with both showing increases in completions, revenue and profit.

In announcing its results, Vistry gave its backing to HBF’s response to housing secretary Michael Gove on a proposed plan to remediate cladding and tackle fire safety. The firm said the additional costs of implementing the recommendations could be in the range of £35 million to £50 million. The firm has also made a total provision for known liabilities of £25.2 million.

Vistry cited “excellent” progress and pre-tax profit for the year of £319.5 million, more than three times the 2020 figure of £98.7 million. Once adjusted for exceptional items profit increased 140% to £346 million. Vistry Housebuilding increased completions to 6,551 from 4,652 and margin up to 22.3% (17.6%). Vistry Partnerships meanwhile delivered “rapid growth in higher margin mixed tenure revenues” up 66% in 2021. Partnerships’ mixed tenure completions increased by 41% to 2,088.

Persimmon meanwhile said it had set aside £75 million for cladding rectification works on 33 developments – it is extending its search for affected buildings back 30 years but does not expect the number of buildings to change materially.

Persimmon profit before tax rose …