Shares in Bovis Homes were up on the FTSE 250 in morning trading after the housebuilder reported a return to profit in the half year ended 30 June.
Last year Bovis reported a first half pre-tax loss of £8.6 million, however this year the group reported first half pre-tax profits of £3.5 million.
Despite this revenue declined slightly from £122.6 million to £115.6 million. Net cash at the end of the half year period was £79 million, down from £112 million at the end of December 2009.
The group said it would resume paying dividends at the end of 2010 "subject to continuation of current market conditions".
During the half year period Bovis added 1,874 consented plots to its land bank, taking the total number of plots in its consented land bank to 13,113
David Ritchie, Chief Executive of Bovis Homes, said, "The Group has performed well in the first half of 2010, delivering a solid set of trading results during a period when the housing market has remained challenging. In addition, the Group has successfully implemented it near term land investment strategy. Along with continuing the successful conversion of its strategic land investments, the Group has purchased a considerable amount of consented land. In total, the Group has added 1,874 consented plots to the land bank in the first half of 2010, increasing the land bank to 13,113 consented plots at 30 June 2010. Further, the Group has terms agreed on an additional c3,000 plots, many of which are anticipated to be acquired in the second half of 2010.
"The Group is well positioned to exploit opportunities to expand, with net cash in hand at 30 June 2010 of £79 million and committed bank facilities of £150 million which mature in September 2013 and provide the flexibility to support the Group's land investment ambitions. The Group has the ability to increase its output capacity and profitability in the future supported by a larger land bank across an increased number of housing sites, without reliance on a general housing market recovery. Reflective of this, the Board has agreed to resume declaring dividends at the end of 2010 subject to the continuation of current market conditions."
By 09:25 shares in Bovis Homes were up 0.23 per cent on the FTSE 250 to 329.20 pence per share.