Bovis Homes 2017 Final Results
Ordinary dividend and capital return plan
The Board intends to pursue a strategy of maximising sustainable dividends to shareholders. In setting the level of dividends the Board will consider a range of factors including the extent to which the dividend is covered by underlying earnings and free cash flow, the prevailing strength of the balance sheet and general economic circumstances, with particular regard to the cyclicality of the industry.
The Board is pleased to recommend a final ordinary dividend of 32.5p (FY16: 30.0p) bringing the total ordinary dividend for FY17 to 47.5p (FY16: 45.0p), representing a 6% increase on the prior year. Based on the current operating plan and reflecting the Board's confidence in the outlook for the business, the Board intends to increase the ordinary dividend for shareholders for FY18 by a further 20% to c.57 pence per share. Thereafter it intends to move progressively towards an ordinary dividend twice covered by earnings in FY20.
In addition, the Board intends that surplus capital will be returned to shareholders via special dividends totalling £180m or c.134 pence per share in the three years to FY20, with the first special dividend payment of £60m or c.45 pence per share expected to be paid towards the end of 2018.
The Group will continue to be strongly cash generative and given the balance sheet position the Board is committed to reviewing capacity for further returns to shareholders over time.
