Bovis Homes reports “excellent” year

<p>Bovis Homes has reported a 69 per cent increase in annual profits.</p>

Housebuilder Bovis Homes has enjoyed an "excellent year" as it reports an increase in annual profits.

The company revealed a 69 per cent rise to £133.5 million for the past year, thanks to a surge in sales which saw a record 3,635 homes sold. It represented a 20 per cent increase on the same period last year, with average sale prices up by 11 per cent to £216,600. Bovis confirmed that demand remained high as the UK is set to create a further 200,000 jobs.

Despite the strong performance, Bovis' share price opened 0.48 per cent down as of 09:31 GMT on Monday (February 23rd). However, the company noted that it would raise it full-year dividend payment to shareholders by 159 per cent to 35p a share. It was not all good news however as activity increases, labour has become scarcer and more expensive sending construction costs up by 12 per cent.

Bovis stated: "History would suggest that sales activity will moderate for a few weeks before the election, followed by a rebound after. The group is aware of this likely impact and is presently working to maximise the current positive sales activity to grow the order book."

House building on the up

The amount of new houses built in England has grown significantly increased over the past year. Figures from the Department of Communities and Local Government (DCLG) revealed that a total of 137,000 homes were started in 2014, a rise of around ten per cent compared to the same period a year earlier.

Housing completion rates were also up by eight per cent on 2013 with 118,760 ready to live in during the past 12 months. The increase was welcomed by many industry experts but they explained that the figures were still "way short" of the UK's requirements.

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