18th Aug 2014 07:42
LONDON (Alliance News) - Bovis Homes Group PLC Monday raised its dividend threefold, after pretax profit more than doubled in the first-half, as the UK housing market continues to perform "robustly."
The Kent-based company increased its interim dividend to 12.0 pence from 4.0 pence, as pretax profit rose to GBP49.4 million for the six months ended June 30, from GBP18.6 million a year earlier. Revenue jumped 75% to GBP322.1 million from GBP184.4 million a year earlier.
FTSE 250-listed company is targeting a full-year dividend of 35 pence per share which would be a significant increase from the 13.5 pence it shelled out at the end of 2013.
The company ramped up legal completions during the first-half, with 1,487 homes built compared with 963 homes a year earlier. In turn, the average sales price on private legal completions came in 20% higher at GBP239,500 compared with GBP200,200 a year earlier.
Bovis Homes said revenue from legal completions rose 72% to GBP312.2 million, from GBP181.6 million, with housing revenue up to GBP315.1 million from GBP183.2 million a year earlier.
The company, which has not operated in London since the late 1980s, said social homes made-up 18% of total legal completions during the half-year, compared with 13% a year earlier. A total of 274 social homes were built during the period, up from 124 a year earlier.
Bovis said its consented land bank has grown to 17,702 plots from 14,638 plots at the end of December. However, strategic land plots dipped to 19,608 from 20,108 at the end of 2013.
"With the strength of the consented landbank, the group has strong visibility on delivering its planned housing volumes for the foreseeable future and hence has continued to be highly selective in the land that it acquires," Bovis said.
Overall, the company said in the first-half of the year the UK housing market continued to perform "robustly with increased housing transaction activity." It said home buyers have good access to mortgages and are confident about buying a home.
Looking ahead, Bovis said it is now almost completely sold for the current financial year and is confident that it will deliver its targeted volume of around 3,650 new homes for 2014.
Additionally, with an increasing proportion of legal completions expected from sites acquired since the housing market downturn and with a greater number of active sales outlets, the group expects that, based on stable market conditions, volumes, average sales price and profit margins will continue to increase in 2015.
The stock was trading up 3.4% at 828.50 pence Monday morning, the fourth highest gainer on the FTSE 250.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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