Homebuilder Bovis Homes Group Plc (BVS.L) reported Monday a strong growth in profit for fiscal 2012, benefited by increased volume of completed homes, and higher average sales price with an improved margin. The company also announced an 80 percent increase in dividend.
The Group now expects to deliver a strong increase in active sales outlets in 2013.
For the full year 2012, pre-tax profit was 54.12 million pounds, 69 percent higher than prior year's 32.1 million pounds, and was at the upper end of market expectations, the company said. On a per share basis, earnings improved to 30.6 pence from 17.5 pence per share a year ago.
Annual revenues climbed 17 percent to 425.53 million pounds from last year's 364.8 million pounds. Housing revenues were 402 million pounds, 21 percent higher than last year.
Operating margin improved to 13.4 percent from 10 percent a year earlier. Housing gross margin grew 1.8 percentage points to 22.6 percent.
Legal completions in the year grew 15 percent to 2,355 homes, with 14 percent increase in private homes and 19 percent growth in legal completions of social homes. Volume growth was driven from the increased number of active sales outlets in 2012.
Average sales price increased 5 percent to 170,700 pounds. For private homes, sales price was 5 percent higher, in line with expectations.
Further, the company's board has proposed a final dividend of 6.0 pence per share, making a full-year dividend of 9 pence, an increase of 80 percent from last year.
The company entered 2013 with a forward sales order position of 778 homes, a 37 percent improvement on the 568 homes brought forward at the start of 2012.
Regarding the current trading, Bovis Homes noted that it has delivered 350 private reservations in the first eight weeks of 2013, an increase of 9 percent. Sales prices achieved to date have been in line with expectations.
In London, Bovis Homes shares are currently trading at 670 pence, down 2 pence or 0.30 percent.
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