BVS30 Aug 2011 08:22
Commenting on the results, David Ritchie, Chief Executive of Bovis Homes Group PLC said:
"The Group has delivered a strong performance during the first half of 2011 with profit before tax more than doubling, against the backdrop of stable, but challenging, market conditions. This increase has been delivered through improved profit margins generated from reduced construction costs on existing sites and the initial contribution from new higher margin sites acquired since the housing market downturn.
"As a result of opening a significant number of the new, more profitable sites, active sales outlets will grow through 2011, supporting higher sales. Subject to current market conditions continuing, the Group's profit margins will continue to improve, particularly in 2012 when a significant proportion of housing completions will come from these new sites.
"Further investments in high quality, consented residential land are continuing, which will support further sales outlet growth in 2012. Additionally, land sales are progressing well, which will enable the Group to improve the efficiency of its capital employed.
"With the progressive, sustainable improvement in the Group's profits and the Board's confidence in the Group's growth strategy, an interim dividend of 1.5 pence has been declared."