Published On: Mon, Feb 22nd, 2016

Bovis Homes (LON:BVS) Reports Record Profits

Bovis Homes

Shares in Bovis Homes have dropped by 16% in the last 6 months.

On Monday Bovis Homes Group PLC (LON:BVS) announced its final results for the financial year ended 31 December 2015, highlighting record profits for the company amidst a strong demand for new properties in the UK.

During the year revenue improved by 17% to £946.5 million from £809.4 million in 2014 boosting profit before tax by 20% to £160.1 million compared to £133.5 million the prior year.

David Ritchie, the Chief Executive of Bovis Homes Group PLC in the update said:

“We have delivered record profit driven by another year of record volume. We have invested well during 2015 in new consented land and achieved a strong level of conversion from our strategic land bank. While it has been a time of operational challenge with fast moving market conditions, we are delivering our strategic growth plan and have evolved our management and business structure at the start of 2016 to support further growth. Assuming market conditions remain stable we are confident in our ability to improve return on capital employed further in 2016.”

Ritchie went on to say that the business envisages delivering sustainable growth over the coming years to achieve annual volumes in the range of 5,000 to 6,000 new properties (the company said they achieved 3,934 legal completions this year).

The house builder noted “positive housing market conditions in the UK”… “with growth in both transaction levels and sales prices”. The group said it is aligned with the governments strategy to deliver new homes required in the UK as “housing demand continues to run ahead of new housing supply”.

In response to the results Ritchie re-confirmed the boards guidance that a full year dividend of 40 pence would be issued to investors; an improvement of 14%.

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