17th Aug 2015 06:16
LONDON (Alliance News) - Bovis Homes Group PLC on Monday said it is on track to deliver its expected volume of new homes, and it is confident in its outlook for 2015 as a whole, after reporting a 8.9% increase in pretax profit for the first half and a record number of legal completions.
In a statement, the FTSE 250 housebuilder said it made a GBP53.8 million pretax profit in the six months to the end of June, compared with GBP49.4 million in the corresponding half the prior year, as revenue increased to GBP350.7 million from GBP322.1 million.
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.
The company said it had a record number of legal completions at 1,525 homes, compared with 1,487 in the corresponding period the prior year.
Bovis Homes said it had cumulative sales to Friday last week for 2015 delivery of 3,768 homes, putting it on track to meet its expected volume in the year as a whole.
"I am pleased to report that significant land opportunities continue to be available at higher returns meaning disciplined investment in consented land should underpin future growth in shareholder returns. With positive market conditions prevailing, we continue to assess the housing cycle and will adapt our strategy appropriately. 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," Chief Executive David Ritchie said in a statement.
"For 2015, we are on track to deliver our expected volume of new homes and remain confident in our outlook for the year as a whole. 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.
By Samuel Agini; [email protected]; @samuelagini
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