Bovis boosts dividend plans after solid start to 2015

15th May 2015 07:32

Having made a good start to the year, with forward sales 8% of the same time last year, Bovis Homes Group has hiked its dividend plans for the full year.Bovis said it remained on on track to deliver its expected result for 2015 and now planned to pay out 40p per share, up from the 35p it had previously indicated.In a statement ahead of its annual shareholder meeting, the housebuilder said total forward sales were up 8% at 3,049 and average sales prices have been roughly 2% ahead of expectations from the fourth quarter of last year.The FTSE 250 company said it anticipated that while cost pressures continued to press on the supply chain, the impact of such cost increases in 2015 "will be at least covered by sales price increases".Weekly sales have averaged a "robust" 0.65 net private reservations per site against last year's blockbuster 0.69 per week, thanks to good levels of customer confidence.Bovis has an increased number of housing sites under development and housing production currently 9% ahead of the prior year."The UK economy remains positive with good quality home buyers able to access cost effective mortgage finance." Bovis, which is building more than double the number of new homes per annum since launching its growth strategy five years ago, said its production plans were on track to deliver the expected volume for this year.On outlook, the company said volumes in 2015 were expected to grow in line with active sales outlet growth coupled with an increase in average sales price and robust profit margins.It predicted the increase in revenue in 2015 would enable it to deliver a capital return in excess of one times for the first time.