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Vistry chief executive Greg Fitzgerald has pledged to retain the Countryside brand if the 拢1.2bn merger between the two housebuilders, announced on Monday, is approved by shareholders.

Fitzgerald said the purchase of Countryside will transform Vistry into a business 50-50 split between traditional private housebuilding - through the Bovis, Linden and now Countryside brands - and partnerships housebuilding through Countryside and Vistry鈥檚 extensive partnerships operations.

Fitzgerald, speaking as Vistry released results for the half year to 30 June, said that senior Countryside execs, including chief finance officer Tim Lawlor, will be coming across with the deal.

He said: 鈥淒on鈥檛 underestimate the power of Countryside brand, it is still a five-star housebuilder with a very good reputation.

鈥淐ountryside is still a very well thought of organization. Hence, we鈥檙e keeping the brand and [are] delighted that we鈥檝e got some great leaders coming over from Countryside to join the business.鈥�

Vistry said in a presentation that combining with Countryside will allow it to increase operating profit in its housebuilding division from 拢305m annually to in excess of 拢400m, and from 拢80m in partnerships to more than 拢400m each year.

Vistry expects to generate 拢50m in annual 鈥渟ynergy鈥� cost savings from the deal, and Fitzgerald said he was 鈥渄elighted鈥� with the quality of the strategic land bank within Countryside that had emerged during due diligence between the firms.

Fitzgerald himself bought 拢200,000 of shares in Vistry this morning and said in the results call this was on the basis of his confidence in the success of the Vistry Countryside tie up.

He said: 鈥淭his combination is going to be absolutely terrific. It鈥檚 going to absolutely fly. It鈥檚 going to be just like the Galliford Try one [Bovis鈥� purchase of Linden Homes to form Vistry]. It鈥檚 going to be great because of the great people we鈥檝e got.鈥�

Fitzgerald repeated the point, made in the announcement on Monday, that the merged operation would retain the option to split into separate standalone private housebuilding and partnerships housebuilding operations at some point in future.

But he made clear that it was not his preferred outcome. 鈥淗opefully [this will] not [happen]. I do believe in the model. I think partnerships and housebuilding works very well together.鈥�

Countryside鈥檚 shareholders are understood to have pushed for a takeover from Vistry because of Fitzgerald鈥檚 strong reputation for delivering growth in housebuilding businesses at Linden, Bovis and Vistry. However, they have also previously pushed for housebuilding and partnerships operations to be separated.

Usman Nabi, founder and chief investment officer of major Countryside shareholder Browning West, said on Tuesday the deal would 鈥渦nlock significant long-term value for Countryside鈥檚 shareholders鈥�, and that 鈥淕reg Fitzgerald has one of the best track records of operating performance and value creation in the UK housebuilding sector, and we have great confidence in his ability to successfully integrate Countryside and lead the combined company as it continues to grow鈥�.

However, Nabi also hailed 鈥渢he option to separate each division in the future.鈥�

Fitzgerald鈥檚 comments on the Countryside deal came as Vistry reported half year revenue up 3% to 拢1.16bn on completions up 5% to 5,409.

But Vistry saw interim pre-tax profit fall back sharply as it made a 拢71.4m provision for repairs to legacy buildings following on from the signing of the cladding pledge with government, under which it promised to repair all buildings with fire safety issues going back 30 years without recourse to public funds. Interim pre-tax profit fell 29% to 拢111m.

The business said that 鈥渁djusted鈥� pre-tax profit, not including the provision, was up 14.3% on the previous year to 拢190m.

Fitzgerald said that the business had been close to signing a finalised legal agreement with the government over the cladding pledge at the point at which the former housing secretary, Greg Clark, resigned on Tuesday. If the deal is ultimately resolved on those terms, he said, it will likely result in a further 拢10m-15m provision in Vistry鈥檚 accounts, Fitzgerald added.

He said the sales market had moved in to a more normal 鈥渟easonal trend鈥�, with sales per site per week running at about 0.60 since July, having recently lost the 鈥渇izz鈥� of the last couple of years, but that this change was welcome, with some signs the land market was 鈥渟ettling鈥�.

Fitzgerald added: 鈥淭he Group has delivered an excellent performance in the first half, significantly exceeding our expectations at the start of the year. Operationally we are in great shape, and with our leading capability across all housing tenures, are very well positioned to maximise the broader market opportunity in the coming period.鈥�