Firm completed deal for Galliford Try鈥檚 housing arms last month
Vistry, the housebuilder formerly known as Bovis, said it expects to generate savings of around 拢35m a year once its 拢1.1bn merger with Galliford Try鈥檚 housing operations is fully bedded in.
Announcing its results for the year to 31 December 2019 today, the group said of the 拢35m annual savings, at least 拢20m a year is expected to come from streamlining the group鈥檚 regional and operational models.
It has already reduced the number of its regional business units from 17 to 13.
The group, led by chief executive Greg Fitzgerald (pictured), also expected to cut around 8% of its headcount across the business, including its central services operation.
Bovis announced plans to buy Galliford Try鈥檚 Linden Homes and partnerships and regeneration businesses in September last year, with the deal completing last month.
The firm said the tie-up would create a top-five housebuilder capable of delivering 12,000 homes a year.
In Bovis鈥檚 last set of results before the merger was completed, turnover was up 6.5% to 拢1.13bn, while pre-tax profit rose 12% to 拢182m. Operating margin rose 60 basis points to 17%.
The group completed 3,867 homes last year, up 3%, while the average selling price also grew by 3% to 拢280,200. Help to Buy, the government鈥檚 financial support programme for new home buyers, accounted for 23% of sales, versus 27% in 2018.
It expects to grow its housebuilding operation鈥檚 delivery of new homes to more than 8,000 homes a year and increase the partnerships arm to 6,000 units annually.
Net cash at the end of last year was 拢362m, up from 拢127m in 2018.
The firm announced it had signed a 拢63m deal with Newham council鈥檚 newly-formed development arm, Red Door Ventures, to build 182 homes in Plaistow, east London, and an agreement with housing association Citizen Housing Group to build 360 homes worth 拢95m on the site of a former hospital in Kidderminster, Worcestershire.
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