Bovis Homes Group PLC AGM Trading Statement (2528N)
15 Maggio 2015 - 8:00AM
UK Regulatory
TIDMBVS
RNS Number : 2528N
Bovis Homes Group PLC
15 May 2015
15 May 2015
Bovis Homes Group PLC
AGM Trading Statement
Strong progress in line with growth strategy
Bovis Homes Group PLC is holding its Annual General Meeting at
12.00 noon today. This statement comments on the Group's current
trading, financial performance and outlook for the current
financial year. This statement covers the period from 1 January
2015 to date and supplements the update given with the 2014 final
results on 23 February 2015.
David Ritchie, Chief Executive, commented:
"During the year to date, we have traded well in a positive UK
housing market building a strong forward sales position on an
increased number of sales outlets. We are on track to deliver our
expected growth for 2015 and a further increase in shareholder
returns. We are planning to step up the 2015 full year dividend to
40 pence per share compared to our previously stated commitment to
pay at least 35 pence per share.
"Strong progress is again being achieved in growing the
consented land bank, including an enhanced level of strategic land
conversion. This will support the Group to continue to deliver
strong returns for shareholders in future years."
Current trading
The Group has traded well to date during 2015 with good progress
made in delivering the pipeline of sales to achieve the next stage
of planned growth. Good levels of customer confidence combined with
an increased number of active traditional housing sites under
development by the Group continue to provide the opportunity for
growth. The UK economy remains positive with good quality home
buyers able to access cost effective mortgage finance.
Solid progress has been made in the year to date with the total
forward sales position for 2015 delivery, including legal
completions to date, standing at 3,049 homes at 8 May 2015, 8%
ahead of the prior year. The Group has been trading from an average
of 100 sales outlets during the year to date which represents an 8%
increase on the comparative period. Weekly sales rates to date have
been robust at 0.65 net private reservations per site against a
strong comparative of 0.69 last year. Sales prices continue to show
sustainable increases with the average private sales price achieved
to date circa 2% ahead of the Group's expectations set in Q4
2014.
Housing production is currently 9% ahead of the prior year,
supporting the plan for 2015. Encouragingly, the Group is now
building more than double the number of new homes per annum since
launching its growth strategy five years ago. The Group's
production plans are on track to deliver the expected volume for
this year: these reflect the ongoing challenges of accessing the
necessary labour resource, both directly employed and sub
contracted. The Group anticipates that whilst build cost pressure
continues within the supply chain, the impact of such cost
increases in 2015 will be at least covered by sales price
increases.
Given the lower level of work in progress at the start of the
year, as previously reported in February, and the production
programmes established for this year, including the timing of new
site launches, the legal completion profile for 2015 is expected to
be more weighted towards the second half year. The Group expects
this profile to be comparable with historical H1:H2 splits rather
than the stronger first half profile delivered in 2014 (41% of
legal completions in H1 2014).
Land acquisitions
The residential land market remains attractive with a good
supply of consented land in the Group's targeted locations. The
Group has added to the consented land bank 1,759 plots on 10 sites
and controls under conditional contract a further circa 1,200 plots
on 11 sites which are expected to be added to the land bank. A
strong pipeline of land with terms agreed is in place to deliver
the targeted level of around 40 new site acquisitions during 2015.
The Group continues to be disciplined in its approach to land
acquisition with robust hurdle rates and no allowance for future
house price inflation included in its land appraisals. The average
expected return on capital employed on land acquired this year is
circa 30%.
The Group's land position continues to benefit from strategic
conversion and it has made significant progress in delivering
planning consent on four major sites. These sites at North
Wokingham, Bishops Stortford, Tavistock, and Witney are controlled
by the Group and will deliver over 2,000 plots with high profit
margins and returns above existing hurdle rates.
Outlook
The Group remains on track to deliver its expected result for
2015. The Group is executing its growth strategy with investment in
consented land, increased active sales outlets and robust rates of
delivery per site. Volume in 2015 is expected to grow in line with
active sales outlet growth coupled with an increase in average
sales price and robust profit margins. The increase in revenue
planned in 2015 is expected to enable the Group for the first time
to deliver a capital turn in excess of one times, further enhancing
the Group's return on capital employed.
Dividend
The Group has previously indicated a dividend for 2015 ahead of
its prevailing dividend policy of a one-third of earnings pay-out
ratio. In 2014, the Group announced a full year dividend of 35
pence per share, which represented 45% of earnings per share in
that year. Subject to the normal shareholder approvals, the Group
is planning to step up the 2015 full year dividend to 40 pence per
share compared to its previously stated commitment to pay at least
35 pence per share.
Board
The Board is delighted that Earl Sibley joined the Group and the
Board as Group Finance Director on 16 April 2015. With effect from
today John Warren retires from the Board. John has been a
non-executive director since 2006 and has been Chairman of the
Audit Committee since 2007. The Board would like to thank John for
all his dedication and hard work and wishes him every success in
the future. The Board is also delighted that Ralph Findlay has
joined the Board as a non-executive director with effect from 7
April 2015. Ralph will take on the role of Chairman of the Audit
Committee with effect from today.
Conference call for analysts and investors
David Ritchie, Chief Executive and Earl Sibley, Group Finance
Director of Bovis Homes will host a conference call at 08:15am
today, Friday 15 May 2015 to discuss the AGM Statement.
To access the call please dial +44 (0)20 3139 4830 and enter
pincode 36672890# when prompted. Please dial in five minutes prior
to the start of the conference call to allow time for registration.
A recording of the conference call will be available until midnight
on 14 June 2015. To access the playback facility, please dial +44
(0)20 3426 2807 and enter conference reference 657987# when
prompted.
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: 07855 432 699
Andrew Jaques / Reg Hoare / James White / Giles Robinson
MHP Communications
Tel: 0203 3128 8788
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGMGGURWAUPAGQC
Grafico Azioni Vistry (LSE:VTY)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Vistry (LSE:VTY)
Storico
Da Lug 2023 a Lug 2024