A robust set of final results from Bovis Homes (BVS) fail to ignite the share price at the housebuilder, with the stock edging only 0.1% higher to 948.5p. The market's reticence around the stellar performance of one of the UK's fastest-growing housebuilders would appear to be largely down to uncertainty ahead of the upcoming general election.
The £1.2 billion cap saw revenues jump 46% to £809 million in the 12 months to the end of December while profit before tax in the period showed a 69% improvement year-on-year.
Chief executive David Ritchie puts the strong performance down to the record number of homes delivered as well as stronger sales prices and profit margins. Return on capital employed at the builder rose 2.1% to 16.2% last year and investors are being treated to a 159% hike in the dividend to 35p.
The full-year results also show strong trading continuing into 2015 with 479 private reservations achieved in the first seven weeks of 2015; already some way ahead of last year's 468 at the same stage in the year.
Impressive revenue growth should continue in 2015, supported by a strong forward sales rate and 'robust' trading since the beginning of the year. Colin Sheridan at Davy research remains sanguine on the stock; 'we continue to favour Bovis on the basis of its growth profile and attractive valuations, in both absolute and relative terms,' he says.