Bovis Homes Group PLC Trading Statement (7612Z)
May 22 2019 - 2:00AM
UK Regulatory
TIDMBVS
RNS Number : 7612Z
Bovis Homes Group PLC
22 May 2019
22 May 2019
BOVIS HOMES GROUP PLC
Trading statement for the period covering 1 January 2019 to
date
Bovis Homes Group PLC is holding its Annual General Meeting
("AGM") at 12:00pm today in Tunbridge Wells. This statement
comments on the Group's current trading and outlook for the
financial year.
Greg Fitzgerald, Chief Executive commented:
"We have seen a strong period of trading including a step up in
our sales rate. I am delighted to see the transformation in the way
we operate reflected in our high build quality and continued strong
improvements in customer satisfaction. We are on track to deliver
another controlled and disciplined period end and make further
operational and financial progress in this financial year."
Current trading
We have seen good demand in the year to date with an average
private sales rate per site per week of 0.61 (2018: 0.52), a 17%
increase on the prior year.
We were pleased to be awarded 4 stars by the HBF in its latest
annual customer satisfaction survey results and are delighted to
report that we are currently trending ahead of this level in the
current HBF year. Delivering high quality homes and excellent
customer service remains a key priority for the Group and this will
be further enhanced following the recent launch of our new Customer
Relationship Management system.
We have opened 7 new developments in the year to date and are
operating from an average of 87 active sites. We expect to open a
further 16 new sites this year, and our average active sites for
2019 to be at a similar level to the prior year (2018: 87).
We have made excellent progress with the roll-out of our new
Phoenix housing range with further sites replanned and show homes
opened. We are now looking forward to the first legal completions
from the new range in the coming weeks and remain confident the new
house types will deliver an enhanced sales proposition for our
customers, improved build efficiency and a reduction in costs.
Our overall improved cost control continues and alongside our
margin initiatives, this is offsetting the impact of limited sales
price inflation and build cost inflation running at c. 3 to 4%.
We continue to have excellent visibility on land with 98% of our
land for our 2020 completions secured and 68% secured for 2021
(excluding strategic land contributions). We are seeing good
opportunities in the land market that at least meet our minimum
hurdle rates.
At the time of our full year results in February we highlighted
the creation of our Partnerships Housing division. As previously
announced, the completion in April of our joint venture at Stanton
Cross, Wellingborough with Riverside, one of the UK's leading
registered providers of social housing, is a great example of our
land led strategy and working in partnership.
Dividends
Subject to shareholder approval at today's AGM a final dividend
in respect of the 2018 financial year of 38.0p per share (2017:
32.5p per share) will be paid on 24 May 2019, giving a total
dividend for 2018 of 57.0p per share (2017: 47.5p per share).
Including the special dividend of 45p per share paid in November
2018, dividends paid in the 12 months total 102p per share.
Outlook
The current market fundamentals remain strong and we continue to
see good levels of demand for new homes across all of our operating
regions. We have a strong forward sales position and are confident
of delivering completions in line with our expectations for the
year.
The Group set out its medium term targets to be achieved by 2020
to return Bovis Homes to being a leading UK housebuilder and
significantly improving returns to our shareholders. We continue to
make good progress against these targets with several already
achieved. We expect to make further progress on the Group's
operational and financial performance in the current year.
Certain statements in this press release are 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 representative on
that such trends, results or activities will continue in the
future. Undue reliance should not be placed on forward looking
statements.
For further information please contact:
Bovis Homes Group PLC
Earl Sibley, Group Finance Director
Susie Bell, Head of IR 01732 280272
Powerscourt
Justin Griffiths
Nick Dibden 020 7250 1446
Notes to Editors:
Bovis Homes, the FTSE 250 listed house builder, is a UK builder
of high quality, traditional homes, ranging from two-bed starter
properties through to large five-bed family homes, with the design
and construction blending tradition with innovation, and creating
quality dwellings and developments with contemporary living
standards.
For the year ended 31 December 2018 the Group completed on 3,759
homes.
In April 2018, Bovis Homes launched its new housing range of 28
new house types for both private and affordable housing. The
Phoenix housing range is designed to meet today's customers' needs
including more open plan living, larger bedrooms and better
storage. It also reflects a complete construction specification
review to ensure time, material and labour efficient designs.
Customer satisfaction is central to the Group and is reflected
in the award of 4 stars by the HBF in its annual customer
satisfaction survey results published in March 2019.
For further information, please visit the Group's website:
https://www.bovishomesgroup.co.uk/
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END
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