Bovis Homes hikes interim divi 200% as H1 profits soar

18th Aug 2014 08:14

- Pre-tax profit up 166% at £49.4m- Margins, completions and sale prices rise- Lower sales activity since the half-yearBovis Homes saw profits rocket in the first half with operating margins nearly five percentage points higher than last year, prompting the housebuilder to hike its interim dividend by 200%.Pre-tax profit in the six months to 30 June totalled £49.4m, up 166% over the year before, on revenues that jumped 75% to £322.1m, as completions reached a record level and sales prices improved.Operating margins improved by 480 basis points year-on-year to 15.9%, well ahead of July's guidance of "at least 15%".The company said legal completions rose to 1,487 homes, up 54% on the 963 completed in the first half of 2013.Meanwhile, the average sales price of homes legally completed was up 11% at £210,000, with prices of private legal completions up 20% at £239,500."I am delighted to report that the group is delivering on its growth strategy and combined with housing market improvements is producing fast improving returns," said chief executive David Ritchie.He said that the board expects to pay an "enhanced dividend for 2014 of 35 pence per share", which would represent a significant increase on the 13.5p paid out in 2013.Since the half-year mark, Bovis said it has seen a "more traditional summer period" with lower sales activity. It highlighted that this traditional lull did not take place last year after Help to Buy fuelled demand throughout the summer.BC