Housebuilder Bovis Homes (BVS) delivered an impressive full-year performance, boosting operating profits by 56 per cent to £56.8m, lifting operating margins from 10 per cent to 13.4 per cent and improving the return on capital employed from 5 per cent to 7.7 per cent. Shareholders were rewarded with an eye-catching 80 per cent hike in the dividend.
Total completions increased by 15 per cent to 2,355 homes last year, while average sales prices were up 5 per cent at £170,000. These trends have continued into the new financial year and forward sales of 778 units are 37 per cent ahead on this time last year. Increasing the number of sales outlets from an average of 82 sites in 2012, up from 73 in 2011, has helped and 90 outlets were operating at the year-end.
Bovis has been replenishing the land bank, too, having acquired 3,501 plots of consented land, with around 86 per cent of these positioned in the more lucrative south of England. This maintains the consented land bank at 13,776 plots, which Bovis believes represents potential gross profits of £600m. Cash generation remained strong so, while net cash fell from £50.8m to £18.8m, this was after spending £161m on the land bank.
Analysts at Numis are forecasting 2013 pre-tax profit of £69.1m and EPS of 38.5p in 2015.
| BOVIS HOMES (BVS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 671p | MARKET VALUE: | £898m | |
| TOUCH: | 671-674p | 12-MONTH HIGH: | 685p | LOW: 392p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 567p | NET CASH: | £18.8m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 282 | -78.7 | -49.1 | 5.0 |
| 2009 | 282 | 4.8 | 2.8 | nil |
| 2010 | 299 | 18.5 | 10.6 | 3.0 |
| 2011 | 365 | 32.1 | 17.5 | 5.0 |
| 2012 | 426 | 54.1 | 30.7 | 9.0 |
| % change | +17 | +69 | +75 | +80 |
Ex-div: 27 Mar Payment: 24 May | ||||
