In its yearly results for 2014, Bovis reported significant profit improvement from record legal completions with stronger average sales price and improved net profit margin.
Net profit margin at the property developer grew by 2.1 percentage points in 2014 to 17% from 14.9% the previous year, with profit before tax jumping from £78.8m to £133.5m.
The number of legal completions in 2014 increased by 29% with 3,635 completed on Bovis Homes’ books. Average sales prices also grew by 11% to £216,600.
Chief executive David Ritchie said: “We laid out our strategic ambitions for the group at the time of our half year results. This plan envisages the business, in a stable housing market, delivering sustainable growth over the next few years to annual volumes of between 5,000 and 6,000 new homes. We are on track to deliver this strategic plan, supported by record land investment in 2014 at the right point in the cycle.
“Given its confidence in our future prospects and having considered ongoing capital requirements, the board is maintaining its guidance on dividends and will be recommending a full year dividend of 35 pence, an increase of 159%. The board also intends to pay a dividend of at least 35 pence per share in 2015.”
Going forward, Ritchie said the group planned to acquire and develop “quality traditional housing sites” in the south of England but excluding London.
