Bovis Homes shares climb as it signals progress on shareholder returns
Shares in housebuilder Bovis Homes opened higher this morning after it issued an upbeat trading statement ahead of its annual general meeting today.
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The company said it has seen its average private sales rate rise 17 per cent over the first five months of 2019 compared to the same period the prior year in terms of per site per week.
Bovis said it expects its average active sites for 2019 to be at a similar level to 2018, and said it has already bought 98 per cent of the land for its 2020 building.
The housebuilder’s statement hinted at the tough conditions in the housing market, saying “limited sales price inflation” was being offset by cost control initiatives.
Bovis highlighted that it was “delivering high quality homes”. The company was publicly accused last year by many buyers of building poor quality houses and having bad customer service.
It said it was making good progress against its “medium term targets to be achieved by 2020 to return Bovis Homes to being a leading UK housebuilder and significantly improving returns to our shareholders”.
Bovis said subject to shareholder approval at today's general meeting, a final dividend for the 2018 financial year of 38.0p per share, up from 32.5p per share for 2017, will be paid on 24 May.
Chief executive Greg Fitzgerald said: “We have seen a strong period of trading including a step up in our sales rate. I am delighted to see the transformation in the way we operate reflected in our high build quality and continued strong improvements in customer satisfaction.”
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“We are on track to deliver another controlled and disciplined period end and make further operational and financial progress in this financial year,” he said.