UK housebuilder Bovis Homes has experienced a 166 per cent rise in profit following a strong demand for new homes.
In results released this morning for the six months to 30 June, the FTSE 250 company reported a 54 per cent increase in the number of new homes built compared to the same period in 2013.
Revenues grew by 75 per cent to £322m, and profit before tax went up to £49.4m, up from £18.6m during the same period in 2013. Sales prices were on average 20 per cent higher because of "modest improvements" in house prices.
Chief executive David Ritchie said as long as market conditions were stable, Bovis' strong position would result in a significant increase in profits in 2014. “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,” he said.
“In the first half of 2014 the Group has delivered a record number of legal completions leading to a 150 per cent increase in operating profit. This significant increase is the result of the compound positive effect of increased volumes, improved average sales price and stronger profit margins.”
Looking to the future, Bovis said it plans to grow to annual volumes of 5,000 to 6,000 new homes. It also plans to pay an enhanced dividend of 35 pence per share in 2015.