Bovis Homes to resume dividend payments to shareholders

British housebuilder Bovis Homes has announced its intention to resume dividend payments to shareholder after an absence of around two years as sales volumes have increased more than expected.

Bovis said that it had plans to resume dividend payments by the end of current financial year as it assumed that existing market conditions in the new homes market would continue.

The Kent-based group had reduced dividend payment in August 2008 and was forced by recession to scrap dividend payments altogether at the beginning of last year.

According to an update, the group completed the sale of 803 homes during the six-month period to the end of June, which represented an increase of 6 per cent on previous year. The average sale price of a home was recorded at £163,500, up from £160,400 in the corresponding period of last year.

The group said that its financial position improved a lot. It had a net cash of £79 million plus loan facilities of £150 million at the half-year stage.

During the last six months, Bovis remained heavily involved in the land buying market. It acquired around 1,900 consented plots at a cost of £107 million.