Bovis Homes share price up as housebuilder delivers record property sales
Bovis Homes revealed a 166 per cent leap in first half pre-tax profits as Britain’s buoyant property market helped the housebuilder to sell a record number of homes.
The FTSE 250 company, which builds most of its homes in the south of England but outside London, completed 1,487 property sales in the six months to 30 June compared with 963 the same time last year.
Homes were sold at an average price of £239,500 – 20 per cent higher than the same time last year – thanks to an improved mix of properties and “modest improvements” in house prices.
Bovis’ record performance helped lift revenues by 75 per cent to £322.1m and drive profits before tax up by 166 per cent to £49.4m.
The company also said it had nearly reached 2014 sales target of 3,650 homes already at the half-year mark and that it is on track to deliver a “significant increase” in full-year profits in line with forecasts.
Chief executive David Ritchie, said: “I am delighted to report that the group is delivering on its growth strategy and combined with housing market improvements is producing fast improving returns.”
He expects annual volumes to reach between 5,000 and 6,000 new homes in the years ahead.
Shares in Bovis closed up five per cent last night after investors welcome proposals for an enhanced dividend of 35 pence per share, of which 12 pence will be paid as an interim dividend, a 200 per cent increase on 2013.