It feels like old times for Bovis Homes as they experience a first half profit and see releasing dividends in the near future. Despite being the smallest publicly traded UK home builder by volume, they are walking tall these days with some strong numbers compared with last year.
They reported a net income of 2.4 million pounds for the first six months of the year, compared with a loss of 6.6 million pounds a year earlier. The promise of dividend release also brought good cheer, since they have not been able to since 2007.
Bovis commented on what led to the impressive figures, saying: “The combination of increased volume from a greater number of sites with improved margins will contribute strongly to the profit growth of the group, without reliance on a general housing market recovery. They added, “This year will be a year of improved profit performance and strong land acquisition.”
The group sold an impressive 803 homes during the first half of the year compared with 754 a year earlier. Financing costs also markedly improved plunging from 5.9 million pounds to 1.3 million pounds.
Housing starts in the UK increased over 50 per cent in Q2 from a year earlier, according to the Department for Communities and Local government. Consumer confidence and extreme government cuts will be to blame for the near future stifling of sales, according to Acadametrics. Mortgage approvals are still only seeing 50 per cent of the success compared to their peek in 2007.
Bovis is slightly off being the overall leader in performance of any UK listed housebuilder and their share value looks to climb in the coming weeks after dropping about 8 per cent in the past three months.