Bovis Homes Group PLC Excellent operational progress, 47% increase in profits

Bovis Home Group

Bovis Homes Group PLC (LLON:BVS) is today issuing its full year results for the 12 months ended 31 December 2018.


– 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




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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


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