Bovis dividend is back as its profits rise to £18.5m

By Daily Mail Reporter
Updated: 18:05 EDT, 14 March 2011

Bovis Homes has restored its dividend following a mini-revival in Britain's property market.

The housebuilder is making a 3p-a-share payout to investors - its first for two years - after pretax profits more than doubled to £18.5million in 2010.

Boss David Ritchie is gearing up for further modest improvement in the housing market after spending record sums on acquiring land last year.

Looking ahead: The firm spent record sums on acquiring land last year

The chief executive told the Daily Mail that there was little chance of a 'resurgence in activity', with sales still languishing at 50 per cent of the 2007 peak.

But property prices are likely to remain 'pretty stable' throughout 2011, with 'a relatively limited supply of housing' offsetting the shortage of affordable mortgages.

First-time buyers in particular are still struggling, with many banks demanding deposits of 20 per cent or more, he said.

Bovis (up 12.9p to 540p) has made a solid start to the year, with reservations up 11 per cent during January and February. It plans to open 33 sales outlets this year.