The Vistry Group's dividend policy has been to maintain a robust and efficient balance sheet and to deliver sustainable dividends to shareholders.
In September 2017, the Group announced its intention to return surplus capital resulting from its balance sheet optimisation initiatives totalling £180m to shareholders in the three years to 2020, with the first £60m paid as a special dividend to shareholders in November 2018.
The expected special dividend for 2019 was returned to shareholders by way of a £60m bonus issue to shareholders on 2 January 2020. Reflecting the Group's new strategy following the acquisition, there will be no further special dividend payments in relation to the £180m capital return initiative.
Instead of paying the Bovis Homes 2019 final dividend, a second interim cash dividend of 41 pence per share will be paid on 29 May 2020 to shareholders on the register as at 27 December 2019. Including the first interim dividend of 20.5 pence per share, this brings the total ordinary dividend for 2019 to 61.5 (2018: 57.0) pence per share.
The Group expects to maximise sustainable dividends to shareholders with an ordinary dividend cover of 2 times initially, moving towards a dividend cover of 1.75 times following a period of integration and deleveraging. The Group will also consider the general economic circumstances, with regards to the cyclicality of the industry.
Other financial highlights include:
- Increase to 5-star HBF customer satisfaction rating
- Another record year of profits with profit before tax pre exceptional items increasing by 12% to £188.2m, ahead of market consensus
- Sustained step up in sales rate to 0.58 per outlet per week, 16% up on the prior year
- Controlled and disciplined period end with completions up 3% to 3,867 units
- Operating margin progression to 17.0% despite continued backdrop of market uncertainty
- Strong land acquisition including valuable strategic land conversion
- 300 basis points increase in ROCE to 22.3%
- Further £60m returned to shareholders through bonus share issue in Jan 2020
