Bovis Homes record 50% increase in housing profit

During the first half of 2013, Bovis Homes made “significant progress in the ongoing delivery of its strategy to improve shareholder returns” with a strong improvement in housing profit, an increase in the number of active sales outlets, a material improvement in the rate of sale per site and “the successful continuation of investment in consented and strategic land”.

Arguing that he general UK economy remains weak Bovis said commented that it is showing “initial signs of a recovery in growth”. In the first half of 2013 the UK housing market has been measurably stronger than in 2012.

“Home buyers have greater access to mortgages and appear more confident about buying a home” said the company in a statement and that this has been supported by the Help to Buy shared equity scheme, launched by the Government in April 2013.

Commenting on the results David Ritchie, Chief Executive of Bovis Homes Group, said that the company “has performed strongly during the first half of 2013 and has delivered a 50% increase in housing operating profit.This significant increase is a result of the ongoing successful execution of the Group’s strategy reflecting the compound positive effect of increased volumes, improved average sales price and stronger profit margin” and that with “the progressive, sustainable improvement in the Group’s profits and the Board’s confidence in the Group’s growth strategy, the interim dividend has been increased by 33% to 4.0 pence per share”.

Financial and operational highlights for H1 2013:

	H1 2013	H1 2012	Change
Housing revenue **	£183.2m	£157.1m	+17%
Housing operating profit **	£20.4m	£13.6m *	+50%
Housing operating margin **	11.1%	8.7% *	+2.4ppts
Operating profit	£20.5m	£17.5m *	+17%
Operating margin	11.1%	10.3% *	+0.8ppts
Profit before tax	£18.6m	£15.6m *	+19%
Earnings per share	10.8p	8.6p *	+26%
Dividend per share	4.0p	3.0p	+33%
Net (debt) / cash	£(48.4)m	£22.2m

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