Bovis Homes sees profits double as sales increase

Sold signs on housing estate
Image caption Bovis says it expects prices to rise 6% this year

UK housebuilder Bovis Homes has reported a doubling of profit and has increased its dividend after selling more homes at a higher average price.

Pre-tax profits for the six months to 30 June were £16.2m, up from £8.1m in the same period last year.

The Kent-based group said that the average sales price of homes completed was £164,400.

Bovis said it expects the average sales price for 2012 to be about 6% higher than that achieved in 2011.

"The investments already made in high quality, consented residential land, combined with the strong pipeline of future land opportunities, will support further sales outlet growth into 2013 and beyond," said David Ritchie, Bovis Homes' chief executive.

Media playback is unsupported on your device
Media captionChief executive David Ritchie explains how Bovis Homes managed to double its profits

Mr Ritchie described market conditions as "stable but challenging".

The company said it had agreed in principle to acquire a further 20 sites, representing more than 3,000 plots of land.

The interim dividend has been increased to 3p a share, up from 1.5p.

Related Internet links

The BBC is not responsible for the content of external Internet sites