Vistry : Annual report and accounts 2021

Annual report and accounts 2021

Vistry Group PLC

Our purpose

To develop sustainable new homes and communities across all sectors of the UK housing market

Brand architecture

Corporate brand

Two operational businesses supported by Vistry Services

Retail brands

Strategic report

A review of our business model, strategy and summary financial review

2021 business highlights 2

Our business at a glance 6

Chairman's statement 10

Governance highlights 15

Chief Executive's review 16

Our business model 22

Executive Leadership Team 23

Market environment 26

Strategic priorities 31

Viability statement and going concern 58

Risk management 60

Risk brought to life: Supply chain 66

Section 172(1) statement 70

Stakeholder engagement 72

Non-financial information statement 74

Sustainability report 76

Financial review 94

Governance report

Detailed discussion of our governance framework and remuneration policy

Financial statements

Financial statements and notes

Group income statement 187

Group statement of comprehensive income 187

Balance sheets - Group and Company 188

Statement of changes in equity - Group and Company 189

Statement of cash flows - Group and Company 190

Notes to the financial statements 191

Supplementary information

Board of Directors 102

Chairman's governance letter 104

Board statements and application of the Code 108

Board leadership and company purpose 112

Division of responsibilities 123

Composition, succession and evaluation 124

Nomination Committee report 128

Audit Committee report 134

Directors' Remuneration report 142

Directors' report 168

Directors' responsibility statement 173

Independent auditors' report 175

Five-year record 234

2022 Notice of AGM and explanatory notes 235

Shareholder information 247

Glossary 248

Principal offices 249

2021 highlightsStrategic report

Governance reportFinancial statementsSupplementary information

2021 highlights

Key Performance Indicators

Financial highlights

98.7 1,811.7

143.9 2,040.1

319.5 2,359.0

346.0 2,693.6

101.6 21.8

107.5 22.4

Notes: (1) Adjusted revenue includes share of joint venture revenue.

• (2) Adjusted gross margin, operating margin, profit before tax and EPS are calculated prior to exceptional costs and amortisation of acquired intangibles.

• (3) Total ordinary dividends for the year being the aggregate of the interim dividend of 20 pence (2020: 20 pence) and final dividend of 40 pence (2020: nil).

• (4) Return on capital employed is calculated as adjusted operating profit (prior to exceptional costs and amortisation of acquired intangibles), divided by the average opening and closing shareholders' funds plus net cash, less goodwill and intangible assets and less retirement benefit asset. See section 5.12 on page 227 for full reconciliation.

2 | Strategic report

2021 highlights

Operational highlights

40218.0 305100

30163.5 228825

20109.0 152550

10054.5 76275

0.0 0

0.470

690,71 546,3

823,71 957,3

823,71 768,3

853,81 5 872,91

Notes: (5) Based on owned and controlled land including joint ventures and joint arrangements.

350,43 5

000,04 5

• (6) Average selling price shown on an adjusted basis to include the proportional contribution of joint ventures.

• (7) Includes joint venture completions and excludes partner delivery equivalent units

  0.235

  0.000

• (8) Based on responses from customers who legally completed between 1 October 2020 to 30 September 2021. Star rating awarded according to the proportion responding 'yes' to the question 'would you recommend your builder to a friend?': 5-Star rating 90% and above.

• (9) This shows the average number of reportable items found for each NHBC inspection.

Strategic report

Vistry Group PLC | vistrygroup.co.uk | 3

Governance reportFinancial statementsSupplementary information