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It鈥檚 a little bit under eight years since Greg Fitzgerald stepped down from running Galliford Try without a role to go to, and the larger-than-life Vistry chief executive is offering me retirement tips.

The problem is, the self-confessed 鈥渕aniac鈥� workaholic has just taken on an additional role at 拢4bn-turnover Vistry. Not finding it enough, clearly, to be chief executive, he鈥檚 about to break all City protocols to become chair of the fast-growing partnership housebuilder at the same time. Oh, and by-the-by, he also owns and chairs 拢85m-turnover Devon-based regional housebuilder Baker Estates, much to the chagrin of his listed rivals, who doubt they would get such leeway from their shareholders.

So, all in all, it鈥檚 possible he鈥檚 the single least-qualified person in the UK to give advice on taking up the proverbial pipe and slippers.

鈥淢y advice is retire in April, don鈥檛 retire in November,鈥� he says, referring to his own retirement from Galliford in 2016. 鈥淭he weather鈥檚 shit. What are you gonna do with yourself? When I had a phone call in February or March [2017] from the chair of Bovis, Ian Tyler, I was very happy.鈥�

The story from there is well known. A supposedly short-term turnaround stint at then struggling housebuilder Bovis turned into a much bigger endeavour when Fitzgerald pulled off a deal to combine it with Galliford鈥檚 housebuilding and partnerships housing business, thereby creating Vistry in January 2020. Eighteen months later he was dealmaking again, opportunistically buying up highly regarded partnerships provider Countryside, creating a combined business that was suddenly on track to become, by volume, the largest housebuilder in the UK.

Along with all this success, it鈥檚 probably fair to say that Fitzgerald himself is not everyone鈥檚 cup of Darjeeling. Critics grumble about brashness, over-confidence and ego. But it is hard to deny his track record, particularly in housing, where he can boast the development of Linden Homes within Galliford, the turnaround of Bovis, and the creation of Vistry as a new powerhouse in the industry. To his admirers, which include Vistry鈥檚 US investors, he can seemingly do no wrong. Alastair Stewart, analyst at Progressive Research, says his record puts him up with the likes of the late Berkeley boss Tony Pidgley. 鈥淗e鈥檚 one of the four best CEOs of any housebuilder in the last three decades.鈥�

His latest role sees him driving an ambitious growth plan. As other housebuilders are reducing numbers in an uncertain market, Vistry looks to be the great hope for the sector, promising to deliver ever more affordable homes against a very difficult backdrop, while providing stellar returns for investors. But there remain big questions. Board-level bust-ups last year and unhappy UK shareholders have prompted his recent move to take on the chair role, he says. So, can he settle the ship? And, most importantly for the sector, can Vistry deliver its plan?

Straight-talking

Piloting Vistry is, right now, the biggest job in UK housebuilding. Later this week, the firm will announce full-year results for 2023 showing 鈥� with both figures up by around a third on last year鈥檚 numbers, courtesy of the impact of the 拢1.1bn Countryside takeover. This will have made it the biggest UK housebuilder by volume in 2023. And a staggering four times the size it was when Fitzgerald took over Bovis less than seven years ago.

Three things mark the firm out: its scale; the ambition of its growth plan; and its partnerships business model. Fitzgerald has said he wants to grow Vistry to a 24,000 homes-a-year builder by 2028, itself startling given no UK housebuilder has ever previously breached the 20,000 units a year barrier. Then last autumn he surprised the market by announcing a strategic pivot to an all-out partnerships housing model, where previously the business had been a hybrid between that and traditional speculative development. Partnerships housing involves developing a large proportion of homes on a pre-sold basis to affordable or build to rent landlords, alongside private sale housing. The rationale is that while partnerships housing delivers a lower margin, it requires far less capital tie-up, provides consistent returns through the property cycle, and offers the prospect, Fitzgerald claims, of a far higher stock market valuation for the company.

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His supporters say there is no-one better qualified to take on such an ambitious plan. One of Vistry鈥檚 biggest shareholders, US asset manager David Capital Partners, said in a pitch to potential investors, that Fitzgerald is 鈥渨idely seen as a charismatic leader with a track record of attracting exceptional talent [and] operating with a sense of urgency鈥�. Though Progressive鈥檚 Stewart says this urgency 鈥渃an border almost on hyperactivity鈥�.

鈥淚f you dish it out, you鈥檝e got to be able to take it. And I do take a lot of crap from people. But, yes, I dish it out.鈥�

Fitzgerald, has worked his way up in construction, beginning as a YTS apprentice estimator at Midas Construction in 1982, along the way founding and running Midas Homes which he then sold to Galliford 鈥� ultimately running that business too. He famously admitted in 2010 to never having read an email (relying on his PA to print important messages out and bring them to him), but says he has, grudgingly, now entered the digital age. 鈥淚 probably was the last person ever to send an email,鈥� he laughs. 鈥淏ut I send very few. I get very frustrated with people sending emails 鈥� why don鈥檛 you just pick up the phone?鈥�

Fitzgerald鈥檚 style is to be present in the business 鈥� he describes going round from office to office, making sure the boardroom diktats are getting through 鈥� and to expect a lot from his colleagues. He is fast-talking, direct, wise-cracking 鈥� and absolutely not one to dance around a difficult topic.

One former volume housebuilder chief executive claims he doesn鈥檛 have 鈥渢oo many friends鈥� in the sector, blaming an excess of bluntness and ego, and Fitzgerald himself admits he might not always be the easiest to work with. 鈥淚鈥檓 extremely demanding and straight talking,鈥� he says, though he says this is countered by 鈥渁 huge amount of loyalty and passion鈥�.

One gets the impression a thick skin and a tolerance for long days is probably a core requirement for senior Vistry execs. 鈥淧articularly in the younger generation, people don鈥檛 like confrontation,鈥� he says. 鈥淚 love confrontation. I would struggle for words in an email, but I鈥檇 rather pick the phone up or meet and have an argument and have your say and move on.鈥�

鈥淵ou鈥檝e got to have a sense of humour,鈥� Fitzgerald says of himself. 鈥淚f you dish it out, you鈥檝e got to be able to take it. And I do take a lot of crap from people. But, yes, I dish it out.鈥�

He says his attitude has 鈥渕ellowed鈥� since his time leading his first company, Midas, but his drive to win is very clear. 鈥淢y view [then] was, if you work for Midas, you live to work. You don鈥檛 work to live 鈥� what good鈥檚 that to me?

鈥淭he vast majority of my life I鈥檝e lived to work. I was absolutely 24/7.鈥�

Credibility

While Fitzgerald is undoubtedly energetic in delivering Vistry鈥檚 new direction, there remain questions from critics as to how credible the growth strategy is. Vistry has promised investors a return on capital employed of 40%, annual revenue growth of 5% to 8%, operating profit of at least 拢800m and a 12%+ operating margin in the medium term. Enthusiastic US shareholders such as David Capital Partners say Vistry can repeat the success of US housebuilder NVR, which operates a comparable capital-light development model, and which just happens to have delivered 28% average annual share price growth over the last 30 years. DCP described Vistry in its investor note as 鈥淣VR on steroids鈥�.

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But rivals say the comparison ignores the differences between the UK and US markets (not least the sclerotic UK planning system), and the firms鈥� business models. In addition, not only is Vistry looking to expand into the teeth of a still shaky private housing market, but it is also doing so during a period when its principal customers, housing associations, are reining in their development activity due to the need to invest in their existing stock. Just last week, the social housing regulator said associations鈥� cash reserves were the lowest for a decade and their development forecasts the weakest since before the pandemic.

Given the number of deals Vistry is reporting 鈥� just last month it announced a 5,000-home deal with Sigma 鈥� there seems little doubt it is managing to find both land and customers. But is it having to sacrifice too much on margin for its growth to be sustainable and its plan to be credible?

In short, Fitzgerald 鈥� unsurprisingly 鈥� says the plan is working. Housing associations may be doing fewer deals overall, he admits, but when they are, they are choosing Vistry because of its long-term partnerships commitment. 鈥淒o you want to deal with someone who鈥檚 going to be doing that scheme with you next year,鈥� he counters, 鈥渙r someone that鈥檚 going to be gone next year?鈥� In addition, Homes England and the Greater London Authority are bringing in new entrants such as 鈥渇or profit鈥� providers 鈥� which don鈥檛 face the same headwinds 鈥� to ensure that the government鈥檚 grant-funded programme is built out, meaning there is still enough work overall.

We are out there, and we are guaranteeing supplies. On input costs and our build, at the very least we should be hugely competitive against our peer group. It doesn鈥檛 surprise me we鈥檙e outbidding housebuilders.

And how is margin being maintained? Fitzgerald admits Vistry gives housing associations 鈥渕assive discounts鈥� to tempt them to sign development deals with them, but says the firm鈥檚 unique business model, its scale and its buying power mean it can deliver without fear of making losses. 鈥淲ho do you think is buying a brick cheaper than anyone else at the moment?鈥� he asks. 鈥淚f we鈥檙e doing our job right, it鈥檚 us.

鈥淲e are out there, and we are guaranteeing supplies. On input costs and our build, at the very least we should be hugely competitive against our peer group. It doesn鈥檛 surprise me we鈥檙e outbidding housebuilders.鈥�

鈥淥ur hurdle rates have not changed. Our margins have not changed,鈥� he says.

And the comparison with NVR, he says, stands up 鈥� because it points to a different way of valuing a housebuilding company, based on a business model which doesn鈥檛 require a big tie-up of capital in land for long periods, thereby freeing up capital to buy back stock. 鈥淭here鈥檚 a correlation between us and NVR,鈥� he says.

鈥淚f we get it [delivery of the plan] right, we will be valued from a stock market perspective from a multiple of earnings as opposed to housebuilders, based on a multiple of their balance sheet. And we could go from anywhere between 15 to 30 times multiple, which takes you to incredible levels of share price.鈥�

But while Vistry鈥檚 share price has outperformed the other housebuilders in the last year, it has done little so far to suggest this kind of game changing re-evaluation. 鈥淓very day that goes by there seems to be another step in the right direction,鈥� Fitzgerald bats back, though admitting that 鈥渦nfortunately that seems to be driven by the US.鈥�

Innovation

Delivery of Vistry鈥檚 expansion plan will rely 鈥� to an extent that has surprised Fitzgerald himself 鈥� on its off-site timber frame business acquired with the purchase of Countryside. This division, now re-branded Vistry Works, includes a brand new 拢20m modular factory in Bardon that Countryside had, prior to the sale, deemed loss-making and put up for sale. Where other housebuilders are dipping their toe in the MMC water, Vistry is diving in head-first, with Fitzgerald saying he expects the 鈥渁bsolutely critical鈥� manufacturing technology to deliver cost parity with traditional construction by 2025.

Vistry has said publicly it expects this year to double the 2,500 timber frame homes it built last year, moving toward the current manufacturing capacity of 7,000. But it鈥檚 clear Fitzgerald sees this as just the start. 鈥淚 can see a route through over the next two or three years where we will be building everything that isn鈥檛 high rise with timber frame, using a standard template. [This will happen] definitely over five years, but we want to do it quicker than that,鈥� he says.

So, that means in the region of 16,000 MMC homes a year? 鈥淭hat鈥檚 where we鈥檙e looking to get to. That鈥檚 why there鈥檚 going to have be more outlets. But you can only do that with certainly of build.鈥�

He does concede there will be challenges in delivering the expansion plan, with the planning system a major obstacle, and the need for more affordable housing investment so far unheeded by the current government.

For the first time in my life, I鈥檓 going to vote Labour

But while he claims Vistry鈥檚 plans don鈥檛 rely on more public cash, he is nonetheless optimistic that after the election, more funding will be forthcoming. 鈥淲e鈥檝e got a major, major issue,鈥� he says. 鈥淭he problem with affordable housing is acute and its embarrassing for the country. We have families being put in Premier Inns. There鈥檚 a financial cost, and there鈥檚 a moral cost.

鈥淚 think the government of whatever colour it may be, has got no choice in my opinion but to prompt an affordable housing boom.鈥�

Either way, it鈥檚 clear he feels let down by the current government, particularly on planning, and says he is listening keenly to Labour鈥檚 ideas for reforms. 鈥淧lanning absolutely needs to be sorted out,鈥� he says. 鈥淧lanning is broken in this country.鈥� This conclusion prompts a surprising admission from a man that has previously made a point of saying he doesn鈥檛 get involved in party politics. 鈥淔or the first time in my life, I鈥檓 going to vote Labour.

鈥淚 think Labour will, from what I鈥檝e heard and seen, take housing forward from the Conservatives [on] planning and affordable housing delivery. I think that they will look at it.鈥� He jokes: 鈥淚鈥檝e told everyone at Vistry if you want to keep your job you have to vote Labour.鈥�

Supply side

Fitzgerald鈥檚 no-nonsense approach to business is perhaps typified by the row with supply chain partners last year, which broke out after Vistry when the private market tanked in the wake of the mini-Budget in September 2022. He admits many partners were initially furious, but claims this anger abated very quickly once suppliers understood the nature of the long-term partnership that Vistry was offering them.

鈥淲eek one it was basically 鈥楩uck off, I鈥檓 not putting any more money in Greg Fitzgerald鈥檚 pockets. No way, not a chance鈥�,鈥� he admits. 鈥淲eek two they鈥檝e had a call from another housebuilder saying they鈥檙e stopping a development. Ok, they鈥檒l come in for a chat. Week three, they鈥檙e offering a discount. By week five they鈥檙e now scrambling to maybe give us more because they want that work.鈥�

He says the key to bringing suppliers round is the rapid rate of build that Vistry鈥檚 partnership model allows 鈥� not being reliant on the drip feed of private sales 鈥� across major 1,000 and 2,000-home schemes. 鈥淲hat we鈥檙e saying [to suppliers] is you鈥檙e going to build all of those houses, and you鈥檙e going to build them as quick as you can. But help me to help you. You need to go back to your subcontractors and say 鈥榳e鈥檝e had a bloody good time of it in 2021-22, and what are we gonna do now?鈥�

鈥淲e鈥檙e negotiating off the back of a guaranteed flow of work. Today I think that anger has completely gone. They鈥檙e saying they need the security of the work.鈥�

Bonus row

Without doubt the biggest controversy dogging Fitzgerald over the last year has surrounded a proposal by some of Vistry鈥檚 US shareholders to introduce a remuneration package which could have seen him pocket anything up to 拢60m, according to reports (shareholders include Browning West, Abrahms Partners and Inclusive Capital, though it鈥檚 not clear who was behind the plan). This proposal ultimately prompted the departure of three non-execs, with US shareholders consolidating their influence on the firm through the replacement appointments. Even the watered down incentive package ultimately tabled, which could see Fitzgerald pocket a maximum of 拢5.6m a year, only just squeezed through the company鈥檚 AGM following a significant shareholder revolt.

Firstly, on the bonus, Fitzgerald is clear that the originally-proposed super incentive package will not be coming back. 鈥淚t wasn鈥檛 my argument. It was the Americans. It was an American-driven value creation plan. As far as they鈥檙e concerned, 鈥榳hat鈥檚 the problem? - If we make a lot of money, then you make a lot of money鈥�. They want to win. But it was me that stopped it. I said, 鈥業 don鈥檛 want it, can we just stop this?鈥�

鈥淚t鈥檚 gone, it鈥檚 not on anyone鈥檚 discussion.鈥�

But additionally, it鈥檚 also clear the row points to a wider clash of cultures between Vistry鈥檚 US shareholders 鈥� who now own around 60% of the firm 鈥� and its UK owners, which is causing no little difficulty. Fitzgerald says these UK and US investors are poles apart, and while he wishes Vistry had more UK buyers and has no ambition to seek a US listing, so far he says it is the US investors that most understand what he is trying to do.

The board recently asked him to take on the chair role 鈥� something that breaks City governance codes 鈥� because they saw him as the best person to deal with these disparate interests. 鈥淚鈥檇 love to say that Vistry had a very good year last year with the plc board,鈥� he says, 鈥渂ut how can I say that when three non-exec directors left?

鈥淧art of me becoming chair and chief executive is to bring some stability to the board. The board think, if we鈥檙e getting a lot of pressure from either the US or UK, then I have a very good relationship with them. Basically, I won鈥檛 put up with much, and if I say it, they might back down.鈥�

Fitzgerald will be 60 this year and has, let鈥檚 remember, already retired once. So the big question remains exactly how long he will stick around for? While he says he 鈥渄eliberately鈥� hasn鈥檛 put a specific timeframe on being both chair and chief executive, he says he doesn鈥檛 plan to stay chair 鈥渇orever鈥� and would be surprised to be doing both jobs in three years鈥� time. But in terms of leaving Vistry altogether, he won鈥檛 be drawn. 鈥淚 will stay in an executive capacity as long as necessary to make sure the strategy absolutely works.鈥�

Somehow, I suspect if that day ever comes, his retirement is unlikely to last the winter.