Proactive Investors - Run By Investors For Investors

Bovis Homes says forward sales position strong but house price rises 'limited'

Tight cost control has offset the impact of “limited” sales price rises and build cost inflation running at around 3% to 4%, the group said.
Bovis Homes
Peel Hunt said the company's dividend yield is attractive but it sees better value elsewhere

Bovis Homes Group PLC (LON:BVS) said on Wednesday that it has a strong forward sales position and is confident of delivering home completions in line with expectations for the year.

In a trading update ahead of its annual general meeting, the housebuilder said it continued to see strong demand for new homes in the year to date with an average private sales rate per site per week of 0.61, up 17% on a year ago.

READ: Bovis Homes sees good demand in 2019

Bovis Homes has opened seven developments in the year to date and expects to open a further 16 new sites this year. It is currently operating from an average of 87 active sites.

Tight cost control has offset the impact of “limited” sales price rises and build cost inflation running at around 3% to 4%, the group said.

The company added that it was making progress with its 2020 targets to become a leading UK housebuilder and significantly improve shareholder returns.

"We have seen a strong period of trading including a step up in our sales rate,” said chief executive Greg Fitzgerald.

 He added: “We are on track to deliver another controlled and disciplined period end and make further operational and financial progress in this financial year."

The company will pay a 38p per share final dividend for the 2018 financial year on Friday. Including a special dividend of 45p per share paid in November 2018, dividends paid in the 12 months totalled 102p per share.

Peel Hunt maintained a ‘hold’ rating and target price of 1,025p.  

“The shares have bounced  nicely in 2019, modestly ahead  of the sector,” the broker said.

“The 9%-plus dividend yield retains obvious attractions for investors but we continue to see better value elsewhere in the sector.”

Shares dropped 1% to 1,034p in morning trading.

View full BVS profile View Profile

Bovis Homes Timeline

Article
February 28 2019

Related Articles

SigmaRoc quarry
April 18 2019
Founded in 2016, the firm looks to create value by purchasing assets in the fragmented construction materials market and forming them into larger groups to create efficiencies
Social care
February 01 2019
In the first half of the current year, the company said its health and housing pipeline had grown to 26 schemes with £222.5mln of gross development value

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use