Mar 15 2005
The Board of Bovis Homes Group PLC today announced its preliminary results for 2004.
- Pre tax profit increased by 18.0% to £145.2 million (2003: £123.0 million) showing a 21% compound annual increase since flotation in 1997
- Earnings per share increased by 17.3% to 87.0p (2003: 74.2p) showing a 21% compound annual increase since flotation in 1997
- Final dividend declared of 13.6p net per ordinary share making 20.0p for the year, a 22% increase over the prior year
- Commitment to increase the full year dividend by 5.0p per share over next four years thus doubling the full year dividend from its current base of 20.0p
- Operating margin at 26.7% (2003: 27.0%)
- Return on average capital employed of 25.7% (2003: 25.5%)
- Plots with planning consent increased to 11,528 plots (owned: 11,174 plots/controlled: 354 plots)
- Strategic landholdings increased to 22,831 potential plots after transferring 2,155 plots to consented landholdings during 2004
- Year end net borrowings of £15.5 million (2.8% geared)
Commenting on the results, Malcolm Harris, the Chief Executive of Bovis Homes Group PLC said: “The Group has delivered a year of record profits with a 9% increase in the volume of legal completions and resultant strong cash flow.
The Group is now benefiting from a strong pull through of strategic land into consented land. This success is expected to continue into the future with a reasonable degree of certainty for the next four years. The profit and cash generation resulting from the Group’s short, medium and long term investment in strategic land provides the base to commit to a more progressive dividend policy in addition to facilitating the Group’s planned expansion including the launch of two new regions on 1 July 2005.
The Group has commenced 2005 with improved landholdings, an exciting new product range and a commitment to achieve the planned expansion. The stability of base interest rates since August 2004 has assisted consumer confidence and visitor numbers and reservations in early 2005 have been encouraging. The Group is well positioned and, assuming an ongoing stable economic environment, the Board is confident of the prospects for the Group in 2005.”