Bovis Homes on track for 2015 growth; to raise dividend against robust backdrop

6th Jul 2015 07:23

Housebuilder Bovis Homes said on Monday that it remains on track to deliver further growth in shareholders returns, as it achieved a record number of first-half legal completions thanks to the high-quality land investments it has made in the last few years.In a trading update for the six-month period ended 30 June 2015, ahead of its half-year results due in August, the company reported legal completions of 1,525 new homes, up 3% from 1,487 in the same period last year.The average sales price on legal completions rose by 6% to £222,000 rom £210,000, while cumulative reservations achieved by 30 June and expected to legally complete in 2015 were 3,505, versus 3,297 last year.Against "a positive backdrop of robust market conditions", the company said it plans to increase the dividend for this year by 14% to 13.7p per share, from 12p in 2014.Chief executive David Ritchie said: "We continue to trade well in a positive UK housing market delivering a strong forward sales and build position on an increased number of sales outlets. As a result we are on track to deliver our expected growth for 2015 and a further increase in return on capital employed supported by robust profit margins and improved capital turn."