6th Jul 2015 06:24
LONDON (Alliance News) - FTSE 250-listed housebuilder Bovis Homes Group PLC on Monday outlined plans to increase its interim dividend after it said home sales rose in the first half of 2015 at higher prices.
Bovis said it is planning to hike its interim dividend for the six months to June 30 to 13.7 pence per share, up 14% from the 12.0 pence per share payout it made a year earlier.
The bigger payout to shareholders follows a rise in legal completions in the first half to 1,525 homes, up from 1,487 a year earlier and a record sales volume for the company in the half. For the full-year, the group expects to legally complete 3,505 homes, up from 3,297 in 2014.
The average sales price of those homes sold also increased for Bovis, up by 6% to GBP222,000 from GBP210,000 a year earlier.
"The group has delivered a record number of first half legal completions, made possible by the high quality land investments made during the last few years," said Bovis Chief Executive David Ritchie.
"We continue to trade well in a positive UK housing market delivering a strong forward sales and build position on an increased number of sales outlets. As a result, we are on track to deliver our expected growth for 2015 and a further increase in return on capital employed supported by robust profit margins and improved capital turn," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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