Bovis to restart dividend payments as profits rise

Published 14th Jan 2011

Housebuilder Bovis has upped its profit guidance for the year, boosted by strong sales and higher selling prices.

The company said average selling prices rose by 4 per cent to £160,700 over last year, while sales completions increased by 5 per cent.

It will now resume paying dividends to shareholders for the first time in two and a half years as it expects full-year profits to beat forecasts of £16.3million.

But Bovis joined competitors in warning that trading conditions in 2011 will remain ‘subdued’.

It added: ‘Mortgage approval volumes remain weak, with mortgage providers requiring high levels of deposit, particularly from first time buyers.

‘This all said, the long term imbalance between the demand and supply of housing remains positive for the housebuilding sector.”

Bovis, which will pay a dividend for 2010 in May, said it completed 1,592 private sales in the period, against 309 for social homes.

The Kent-based group is eyeing further growth, having snapped up around 3,700 plots in 2010 and agreed terms on an additional 2,500 plots.

Source: ' ThisIsMoney '

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