Housebuilder Bovis Homes has reported it has seen significant increases in its annual profits over the last twelve months…
News has emerged that housebuilder Bovis Homes has seen a 69 per cent increase in its annual profits. Figures rose to £133.5m after what the firm described as an “excellent” year.
Bovis Homes reported the number of properties sold last year rose to a record 3,635. This figure was 20 per cent higher than the previous year, with the average sale price also increasing by 11 per cent to £216,000.
Furthermore, Bovis Homes said demand for new homes was high, and that it expected figures to grow as the UK is set to create 200,000 extra households a year.
The profit rise will enable the company to increase its full-year dividend payment to shareholders by a hefty 159 per cent to 35p a share.
The Chief Executive of Bovis Homes David Ritchie said: “We have been gearing up for a big push for the past five years. We see this as a fantastic time to grow.”
However, the increase in construction meant labour had become scarce and more expensive. This saw construction costs rise by 12 per cent in 2014. Despite this fact, the price of private homes outstripped this, with an increase of 14 per cent over the year.
Bovis also warned it could see a seven per cent increase in the cost of construction this year due to the fact the business was shifting more towards the south of England.
The news comes less than a fortnight after housebuilder Redrow also announced it had doubled its half year profits in the six months to December.