Bovis Homes Group PLC (LLON:BVS) is today issuing its full year results for the 12 months ended 31 December 2018.
Highlights
– Significant operational improvements deliver step change in business and financial performance
– Transformation of customer service and 4 star HBF customer satisfaction rating for 2018
– Record year of profits with profit before tax increasing 47.4% to £168.1m, ahead of market expectations
– Another controlled and disciplined period end with completions totalling 3,759 units
– 390 basis points increase in operating margin with further progress expected in 2019
– Strong land acquisition including valuable strategic land conversion
– Excellent visibility on land with all land for 2019 having detailed consent and 97% of 2020 requirement secured
– Progress on balance sheet optimisation initiatives and now aiming for c. £250m additional net cash benefit with £180m achieved to date
– Step up in return on capital employed from 13.7% to 19.3%
– Excellent progress towards achieving all of our medium term targets
– Board recommending a 20% increase in ordinary dividend for FY18 to 57.0 pence per share reflecting the strong performance and its confidence in the outlook for the business
|
FY18 |
FY17 |
Change |
|
|
Total completions |
3,759 |
3,645 |
+3.1% |
|
Average selling price |
£273.2k |
£272.4k |
+0.3% |
|
Group revenue |
£1,061.4m |
£1,028.2m |
+3.2% |
|
Operating margin |
16.4% |
12.5% |
+390bp |
|
Profit before tax |
£168.1m |
£114.0m |
+47.4% |
|
Earnings per share |
101.6p |
68.0p |
+49.4% |
|
Total dividend per share |
102.0p |
47.5p |
+114.7% |
|
Net cash |
£126.8m |
£144.9m |
(12.5)% |
Greg Fitzgerald, Chief Executive commented,
“The Group has made substantial progress operationally over the past 18 months delivering record profits and a step change in our operating margin. We have transformed the quality of our product and customer service and are delighted this is reflected in our 4 star housebuilder status for 2018.
“Looking ahead, we are implementing many initiatives which will continue to build a better Bovis Homes including our new Phoenix housing range with its first completions this Spring, and the development of our new Partnership Housing division. We have a strong sales position and excellent land visibility and expect to make further operational and financial progress in 2019.”
Current trading and outlook
– Good demand in first eight weeks with average sales per site per week up 15.7% to 0.58 and pricing in-line with expectations
– Strong forward sales position with 48% of consensus FY19 revenues secured
– Group remains focused on controlled volume growth, price optimisation and margin enhancement
– Good progress with new Phoenix housing range and first completions expected in H1 19
– Maximising partnership housing opportunities with creation of a Partnership Housing division in 2019
– On track for completion of Wellingborough JV with c. £68m net cash benefit
– Further operational and financial progress expected in 2019
