A bumper government grant has handed battered Vistry shareholders their best day in months.
Vistry Group (LSE: VTY) shares jumped more than 10% on Tuesday after the housebuilder secured a £350 million direct grant in the first round of the government's £39 billion Social and Affordable Homes Programme, the largest single award made at this stage of the scheme.
The award, which came as Vistry was reconfirmed as a Strategic Partner under the programme, will support the delivery of more than 3,000 affordable homes and is well ahead of the sum the group received under the previous iteration of the funding scheme, giving battered shareholders a rare dose of good news.
Vistry said it has already identified schemes within its existing pipeline where the grant can be deployed this year, meaning the funding should feed through to output relatively quickly rather than sitting idle. The group also flagged scope to build further homes by partnering with other Strategic Partners, Mayoral Strategic Authorities and councils as they allocate their share of the initial £9.58 billion released under the wider programme.
Vistry pointed to its established footprint across the sector as a reason it is well placed to capture more of that flow, noting long-standing relationships with 29 of the 32 other strategic partners named alongside it and a presence across every mayoral authority covered by Tuesday's announcement.
The grant does not erase the memory of the accounting problems that hammered Vistry's shares last year, and the company itself was careful to frame the news as welcome rather than transformative. Investors will now be watching for further allocations from councils and mayoral authorities as the wider £39 billion programme rolls out, along with evidence that the group can convert its pipeline into completed affordable homes on schedule.
This report is based on Vistry Group’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: BEN ELLIOTT on Unsplash.
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