Bovis Homes completes record number of homes and hikes divi

By comparison, Bovis Homes built 3,635 new homes in 2014 and 2,813 in 2013. Half-year pretax profit rose 9 percent to 53.8 million pounds ($84 million) year-on-year.

Shares of British housebuilder Bovis Homes Group Plc fell off 7-year highs on Monday as the company’s in-line first-half results failed to impress the market at times of a continued shortage of housing supply.

It added that its average selling prices jumped 10% in the same period to £264,200, as the market experienced solid levels of mortgage availability and good home buyer confidence backed by the extension of the Government’s Help to Buy programme.

The group is also in a strong position for future development, with more than 19,000 plots in its landbank.

Bovis Homes is planning to expand in the Midlands and Thames Valley after delivering a record 1,525 completions in the first half of the year. Our long term land investment in high quality locations, including delivery from strategic land, is providing a consented land bank which supports growth in active sales outlets leading to increased volumes. We anticipate that the addition of around 40 sites per annum will support our medium term growth strategy to deliver volumes of between 5,000 and 6,000 new homes each year. “The combination of strong revenue growth and higher profit margins with improved capital efficiency will drive higher capital turn and return on capital employed”, Ritchie added.

Chief executive David Ritchie said: “This has been with us now for the best part of a couple of years and as we try to grow the business and ultimately build more houses to fuel that growth, it is a challenge for us and the sector”.

It said it was on track to achieve expected volumes for the full year and production achieved to August 14 was ahead of the same period in 2014.

Bovis Homes increased its interim dividend per share to 13.7 pence from 12.0p, and said it intends to increase the full-year dividend to 40p from 35p.