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Bovis Homes reports pre-tax profit rise

Bovis Homes has reported a 9 per cent increase in pre-tax profit for the first half of the year, as legal completions for the period rose to 1,525.

Pre-tax profit stood at £53.8m for the period to 30 June 2015, compared with £49.4m for the same six months in 2014.

Legal completions increased slightly to 1,525, from 1,487 homes in H1 2014.

The housebuilder said it expected legal completions to be weighted more to the second half of the year, as they did last year.

Out of total legal completions, 1,079 were private homes (H1 2014: 1,107 homes) and 101 homes were completed as private rented sector transactions.

Social homes made up 23 per cent of total legal completions (345 homes).

Total revenue jumped 9 per cent to £350.7m, compared with £322.1m for the same period the year before.

The housebuilder increased its H1 dividend by 14 per cent to 13.7p, up from 12p the year before.

Bovis has a target to acquire around 40 new sites each year, as part of its medium-term growth strategy to deliver between 5,000 and 6,000 new homes each year.

Bovis chief executive David Ritchie said: “For 2015, we are on track to deliver our expected volume of new homes and remain confident in our outlook for the year as a whole.

“The combination of strong revenue growth and higher profit margins with improved capital efficiency will drive higher capital turn and return on capital employed.

“With this anticipated improvement in returns, the board intends to increase the full year dividend to 40p per share.”

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