Vistry plans 100 job cuts in post-merger rationalisation
Operations have already been simplified from 17 regional business units to 13, with most of the approximately 100 planned cuts foreseen by the central services.
Announcing a 12% increase in pre-tax profit to £ 188 million last year, CEO Greg Fitzgerald said that the integration of Bovis, Linden Homes and Galliford Partnerships’ business was already well advanced.
Earnings growth occurred against the backdrop of downward pressure on house prices in the second half of 2019.
This was partially mitigated by the combination of group building cost savings initiatives and the lack of cost inflation.
During 2019, construction costs decreased by 2% per square foot, driven by cost base reductions and specification changes.
After the £ 1 billion merger, Galliford Try aims to achieve £ 35 million savings by 2021.
At least £ 15 million is expected from savings on purchases and optimization of specifications in its three ranges of homes: the Phoenix Collection, the Linden Collection and the Partnership homes.
Fitzgerald said that the extended group is also making good progress in renegotiating supply contracts.
He added that Galliford Try Partnerships, which is the least affected by the integration process, will grow strongly in 2020, targeting 6,000 homes per year and an operating margin of over 10% from revenues of at least £ 1 billion.
Vistry Partnerships aims to accelerate revenue growth through enhanced land-driven development with higher margins.
This year, Vistry Partnerships entered into a £ 95 million development with the residential association, Citizen Housing Group, for the delivery of 360 homes to the former Lea Castle hospital site in Kidderminster.
In London, Vistry Partnerships has entered into a contract with Red Door Ventures, a newly established subsidiary of the Newham Council for the delivery of rental homes in Plaistow.
This £ 63m program will provide 182 homes and associated business units and expand the group’s track record in delivering houses to build to private rental and rental sectors.