AGM Statement

RNS Number : 7069X

Bovis Homes Group PLC

10 May 2016

 

Bovis Homes Group PLC

AGM Statement

Bovis Homes Group PLC is holding its Annual General Meeting at 12.30pm today in Tunbridge Wells where the following update will be given regarding current trading and the outlook for the financial year.  This statement covers the period from 1 January 2016 to date and supplements the update given with the 2015 final results on 22 February 2016.

David Ritchie, Chief Executive, commented:

"We have been trading well with positive market conditions supporting activity levels and we are on track to deliver our planned growth for 2016.  We continue to drive improvements in our operations across the enlarged business with strong investment in our people and focus on delivering value across the Group."

Current trading

Housing market conditions remain positive with strong demand from home buyers who are benefitting from good access to mortgage finance.  Our sales prices continue to show levels of sustainable growth driven by our improving mix of homes.  Weekly sales rates have improved in recent weeks and in the year to date we have achieved 0.65 net private reservations per site, which is now in line with last year.  We have launched 17 new sites for sale with many sites acquired in 2015 now launched and selling well.  A number of sites have sold out earlier than expected and, as a result our total number of sales outlets has remained broadly constant over the year to date.  The forthcoming EU referendum has had no discernible impact on our business with strong demand across all our operating areas.

As highlighted in February, the profile of legal completions in 2016 will be weighted to the second half year in a similar manner to 2015, whilst the anticipated increased overhead costs being incurred to manage the enlarged Group will be evenly spread over the year.  We are continuing to make operating improvements across the business which are providing opportunities for higher profit margins in the future.  We continue to see the level of cost inflation moderating compared to our experience in 2015.

Land

At this point in the cycle, adopting our normal disciplined approach to land investment, we continue to invest in high quality consented land.  We have a strong pipeline with terms either agreed or progressing through strategic conversion to deliver the targeted level of new site acquisitions during 2016.

Dividend

Subject to shareholder approval at today's AGM, a final dividend of 26.3 pence per share (2014 final: 23 pence per share) will be paid on 20 May 2016, giving a total dividend for 2015 of 40 pence per share (2014 total: 35 pence per share).

Certain statements may be forward looking statements.  Forward looking statements involve evaluating a number of risks, uncertainties or assumptions that could cause actual results to differ materially from those expressed or implied by those statements.  Forward looking statements regarding past trends, results or activities should not be taken as a representation that such trends, results or activities will continue in the future.  Undue reliance should not be placed on forward looking statements.

-ENDS-

Enquiries:       David Ritchie, Chief Executive

                            Earl Sibley, Group Finance Director

                            Bovis Homes Group PLC

                            Tel: [phone]

                            Reg Hoare / James White / Giles Robinson

                            MHP Communications

                            Tel: [phone]

 

END

 

 

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