Shares in Bovis Homes were up on the FTSE 250 in morning trading after the housebuilder reported a doubling of pre-tax profit in the full year ended 31 December 2010.
Revenue in the period increased from £281.5 million to £298.6 million however pre-tax profit more than doubled from £7.5 million to £18.5 million.
Following the results Bovis Homes said it would be reinstating a dividend of 3.0 pence per share.
The group said that it spent a net £137 million on land during the year, leaving it with net cash of £51.7 million at the end of the year, down from £112.3 million at the end of the previous year.
Bovis said that the beginning in 2011 had been "encouraging", with reservations up 11 per cent from the same nine week period last year.
David Ritchie, Chief Executive of Bovis Homes, said, "The Group has delivered a strong improvement in profit in 2010, driven by increased volumes, stronger sales prices and delivery of cost savings.
"The Group has also made significant progress with its growth strategy through substantial land investment, a strong pipeline of further land acquisition opportunities and a strong expected increase in active sales outlets. Based on a continuation of current market conditions, this growth strategy gives the Group confidence in delivering greater volumes and increased profits.
"The Group is focused on enhancing shareholder returns through increased profitability and improved efficiency of its capital employed. To this end, the Group anticipates selling land on a number of its larger sites and combining the cash generated with its existing strong financial resources to support further land acquisitions. This will enhance the spread of land controlled by the Group leading to an increase in active sales outlets in the future."
Keith Bowman, Equity Analyst at Hargreaves Lansdown Stockbrokers, commented, "In line with rival housebuilders, Bovis has reported a strong rebound in profitability, driven by now familiar themes of cost cutting and adjustments in the build mix towards higher priced family homes. Furthermore, an 'encouraging' start to the spring selling season has been noted, whilst management's confidence in the outlook has been underlined by a return to the payment of dividends.
"In all, Bovis has weathered the credit crisis relatively well, coming into the downturn in better shape than many rivals. However, despite today's broadly positive update, the shares are generally assessed as being 'up with events', with rival housebuilders potentially offering better value. As such, market consensus opinion continues to denote a hold."
By 09:50 shares in Bovis Homes were up 2.44 per cent on the FTSE 250 to 440.10 pence per share.