Bovis Homes saw its pre-tax profits surge by 41 per cent to £60.2million in the six months to 30 June, while sales rose 1 per cent to £432.2million.
Investors with shares in Bovis will receive an interim dividend of 19p per share, marking a 27 per cent increase on a year ago.
The housebuilding group said government Help to Buy initiatives, low mortgage rates and strong customer demand helped boost sales.
Boost: Bovis Homes saw its pre-tax profits surge by 41 per cent to £60.2million in the six months to 30 June
Thirty-six per cent of the group’s reservations in the first half stemmed from Help to Buy Schemes, up from 34 per cent at the same point a year ago.
A string of housebuilders are pushing the government to decide whether Help to Buy will continue beyond 2021, given the boost the schemes have given to their balance sheets.
Last year Bovis issued a warning over its profits and an investigation by The Times this April claimed the firm was misleading buyers and ‘deliberately’ delaying essential repairs to poorly built homes.
In April, nearly 3,000 people joined the ‘Bovis Homes Victims’ Group’ on Facebook, complaining of a long list of problems.
At that stage, homeowners said they reported leaks, poor drainage, bug infestations, unfinished gardens and badly-constructed walls.
In its latest results, Bovis said delivering ‘quality homes’ and providing customers with a ‘high level’ of customer service remained a ‘key strategic priority.’
The group reported customer satisfaction levels of above 80 per cent, but ‘customer care’ costs came in at £3.5million for the first half.
Bovis completed 1,580 homes in the half-year, up just 4 per cent, confirming a building slowdown as it focuses on quality.
The average selling price on completion remained flat at £334,700.
Bobis boss Greg Fitzgerald said: ‘We delivered a strong performance in the half, with a more than 40% increase in profits.
‘This reflects the excellent progress made across all business areas over the past 18 months and a step change in the quality of the homes we are building and level of service we are providing our customers.
‘We are confident in the outlook for the business and are targeting a record year of profits in 2018, at the top end of the board’s expectations.’
Shares in Bovis are up 3.27 per cent or 37p to 1,168.5p.
On the up: Shares in Bovis are up 3.27 per cent or 37p to 1,168.5p
On Wednesday, Barratt Developments claimed it enjoyed an ‘outstanding’ year after swinging to a higher profit amid tougher times for the housing market.
The group saw its annual pre-tax profits rise 9.2 per cent to £835.5million, while sales grew by 4.8 per cent to £4.87billion.
David Thomas, Barratt’s chief executive, said: ‘As the UK’s largest housebuilder we are helping to address the country’s housing shortage – creating jobs and supporting economic growth whilst continuing to lead the industry in quality and customer service.’
The Help to Buy scheme, which gives first-time buyers the chance to get on the housing ladder with a deposit of just 5 per cent, provided Barratt with 36 per cent of its sales in the last year, against 35 per cent a year earlier.
Berkeley Group said in a trading update ahead of its annual general meeting on Wednesday that although it is making billions in profit, the housing market ‘lacks urgency and London remains constrained by high transaction costs, restrictive income multiple limits on mortgage borrowing and prevailing economic uncertainty, accentuated by Brexit.’