In the middle of its amplifying confidence in its medium-term prospects, Bovis Homes, the house building group, is making further plans to recommence paying shareholder dividends. In August 2008, the Group had declared very low dividend, before it had revealed plans to scrap payments in total, at the beginning of 2009.

The group was then focusing more upon shoring up of its balance sheet in the face of the housing bazaar droop. Now, the group has been seen to be trading and operating lucratively in a ‘subdued’ new homes market.

Its sales prices are much forward of the group’s internal anticipations and it now plans to recommence dividends, only if the market circumstances do not go bad once again.

Chief Executive, David Ritchie said, “Given the confidence the board has in the medium term prospects of the group arising from its investment in new land opportunities and strong net cash position, the board intends to resume dividends at the end of the current financial year”.

At the half-year stage, the fiscal position of the group is seen to be much enhanced with a total cash position of £79 million, as said by Bovis. Plus, the Group has £150m in place for its loan facilities, which can give ‘substantial’ monetary headroom to it.