Homebuilder Bovis homes (BVS.L) this morning released an interim statement saying it expects a “significant increase in shareholder returns” this year.
The company noted that this period has seen a more normal pattern of seasonal activity and that it has a strong order book going forward which supports its bullish outlook. Bovis homes also expects to continue in its attempts to invest in more land and that this is “progressing well”.
Highlights of the interim statement were:
Highlights
· On course to deliver a strong result for 2014 with an increase in volumes expected of circa 30% over 2013
· Average sales price for 2014 legal completions expected to be approximately 10% greater than in 2013
· Operating margin for 2014 expected to be circa 17% (2013: 14.9%), delivering a return on capital employed of circa 16% (2013: 10.4%)
· Circa 6,000 consented plots on 33 sites added to the consented land bank to date with average returns above full hurdle rate
· Substantial forward order book for 2015 supporting strong growth prospects
David Ritchie, the Chief Executive of Bovis Homes Group PLC said:
“We are anticipating a strong increase in profit for 2014 and at the same time expecting to deliver a stronger forward order book for the start of 2015. The Group’s updated strategic plan as laid out at the time of our Interim Results to deliver optimal scale and enhanced returns is supported by our ongoing land buying and strategic land conversion. We are confident of our future prospects and ability to deliver improved shareholder returns through higher return on capital employed and increasing dividends.”
Although this statement did little to please investors as Bovis homes (BVS.L) was trading down 28.00 at 816p (-3.32%) by mid morning.
Homebuilder Bovis homes (BVS.L) this morning released an interim statement saying it expects a “significant increase in shareholder returns” this year.
The company noted that this period has seen a more normal pattern of seasonal activity and that it has a strong order book going forward which supports its bullish outlook. Bovis homes also expects to continue in its attempts to invest in more land and that this is “progressing well”.
Highlights of the interim statement were:
Highlights
· On course to deliver a strong result for 2014 with an increase in volumes expected of circa 30% over 2013
· Average sales price for 2014 legal completions expected to be approximately 10% greater than in 2013
· Operating margin for 2014 expected to be circa 17% (2013: 14.9%), delivering a return on capital employed of circa 16% (2013: 10.4%)
· Circa 6,000 consented plots on 33 sites added to the consented land bank to date with average returns above full hurdle rate
· Substantial forward order book for 2015 supporting strong growth prospects
David Ritchie, the Chief Executive of Bovis Homes Group PLC said:
“We are anticipating a strong increase in profit for 2014 and at the same time expecting to deliver a stronger forward order book for the start of 2015. The Group’s updated strategic plan as laid out at the time of our Interim Results to deliver optimal scale and enhanced returns is supported by our ongoing land buying and strategic land conversion. We are confident of our future prospects and ability to deliver improved shareholder returns through higher return on capital employed and increasing dividends.”
Although this statement did little to please investors as Bovis homes (BVS.L) was trading down 28.00 at 816p (-3.32%) by mid morning.
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