Bovis Homes Intends To Resume Dividends At The End Of Fincl Yr

9th Jul 2010 07:20

LONDON (Dow Jones)--Bovis Homes Group PLC (BVS.LN), a company that sells homes to both private and public sector customers, announced Friday for the six months to June 30, that given the confidence the Board has in the medium term prospects of the Group arising from its investment in new land opportunities and the Group's strong net cash position, the Board intends to resume dividends at the end of the current financial year, assuming the continuation of current market conditions in the new homes market. MAIN FACTS: -Consented land acquisition strategy progressing well with c1,900 consented plots added to land bank this year and terms agreed to acquire a further c2,500 plots -Strong GBP79 million net cash position at half year -Looking towards the full year, the Group has achieved cumulative sales at Jun. 30, 2010 for 2010 legal completion of 1,474 homes as compared to 1,364 homes at the same point last year. -Within these totals, private sales stood at 1,150 homes in 2010 compared to 1,086 homes in 2009, reflecting a 6% increase. -In the year to date, the Group has achieved a net private sales rate per site per week of 0.42 reservations, ahead of the comparable net private sales rate achieved in the first half of 2009 of 0.39 reservations. -The Group is selling homes in line with its targeted weekly sale rate and a continuation of this will allow the Group to achieve its volume expectations for 2010. - The committed loan facilities of GBP150 million which were agreed in January 2010 and mature in September 2013 provide the Group with substantial financial headroom. -Against this market backdrop, the Group has been operating successfully, delivering solid weekly private sales rates and achieving sales prices ahead of the Group's internal expectations. -For the six months ended Jun. 30, 2010, the Group legally completed 803 homes, as compared to 754 homes in the comparable period, an increase of 6%. -For private homes, the Group achieved an average net sales price of GBP163,500, as compared to GBP160,400 in the first six months of 2009, reflecting an improved pricing position generally on a smaller average size of home legally completed. -Overall, including the increased mix of social and partnership homes, the average sales price achieved by the Group for the six months ended Jun. 30, 2010 was GBP158,500 compared with GBP159,700 in the first half of 2009. -Shares closed Thursday at 348.80 pence. -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; [email protected] (END) Dow Jones Newswires July 09, 2010 02:20 ET (06:20 GMT)