Bovis joins the housing boom
Construction company Bovis reports a 26pc increase in homes sold last year and a 48pc rise in profits
A PLASTERER RENDERING AROUND NEW HARDWOOD CASEMENT WINDOWS ON A COTTAGE UNDER RENOVATION UK
Last year Bovis completed the sale of 2,813 homes at an average price 14pc higher at £195,000 Photo: Alamy
Bovis Homes has provided further evidence of the housing recovery with a 26pc increase in homes sold last year, a 48pc rise in profits and a 50pc jump in dividend payments.
David Ritchie, chief executive, said the group had made a “great start” this year with sales up 60pc and selling prices 2pc higher than expected. He suggested Bovis would have been able to achieve the improvement without any stimulus from the Government’s Help to Buy scheme.
Bovis has lagged behind rivals, trading at a 24pc discount to the sector but analysts have been impressed by the turnaround engineered by the Ritchie team and the increase in its land bank in the buoyant south.
Last year Bovis completed the sale of 2,813 homes at an average price 14pc higher at £195,000, with the result that operating margins rose from 13.3pc to 14.8pc. Pre-tax profits of £78.8m were above most market expectations and a final dividend of 9.5p a share, payable May 24, makes 13.5p for the year, against 9.5p
The strong start to the year has increased hopes Bovis will achieve its target of increasing sales by 21pc-28pc to 3,600.