Bovis Homes’ pretax profit rose by 20% last year as house prices increased.
The housebuilder’s annual results for 2015 showed pretax profit of £160.1m, up from £133.5m in 2014. Revenue grew by 17% to £946.5m from £809.4m in 2014.
The final dividend of 26.3p per share brings the total shareholder payout for the year to 40p, up by 14% on 2014.
The company added 35 sites to its portfolio during 2015, equivalent to 6,058 homes. These sites have an estimated future revenue value of around £1.7bn and an estimate profit potential of £440m, based on current sales prices and how much it costs to build the homes.
Bovis has submitted planning permission for a further eight major sites, with the potential for 5,000 new homes. It aims to build a total of between 5,000 and 6,000 properties every year.
Chief executive David Ritchie said the expansion of Bovis’ portfolio combined with higher average sales prices resulted in the strong profit.
He said: “The positive housing market conditions in the UK continue, with growth in both transaction levels and sales prices. Housing demand continues to run ahead of new housing supply with the availability of development land supported by increasing levels of planning permissions.”
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