Vistry Group PLC (LSE:VTY) reported a 29% fall in first-half profits after a £71.4mln "exceptional expense" related to cladding and fire safety, but upped its dividend as the underlying performance was better than expected.
The UK housebuilder said demand in the second half was "reflecting the more typical seasonal trends seen prior to 2020", with "a good level of prospects and pricing remains firm".
Its Partnerships business, which specialises in social housing, is positioned to meet a "very high level of counter-cyclical demand", it added.
Underlying profits were 14% higher at £189.9mln for , which yesterday confirmed it had agreed to buy rival Countryside for £1.25bn.
On a reported basis, profits were down to £111.3mln compared to £156.2mln a year ago, on revenues up 5.5% at £1.3bn.
For the full year, the FTSE 250-listed group said it expects adjusted pre-tax profits of around £417mln, with its Housebuilding and Partnerships wings both expected to be profitable, "ahead of our expectations at the start of the year", despite the wider economic uncertainty.
A 23p interim dividend was declared, up from 20p a year ago, as the company said it said the first-half performance was "ahead of our expectations".
Additional fire safety provisions have been taken by the group in the first half to meet liabilities covered by the pledge and project management costs.
Shares of the company were trading 1.4% higher at 812.5p, but still down over 30% since the start of the year.