Pre-tax profits at house builder Bovis Homes have grown by more than two thirds thanks to rising house prices and more people buying property.

The New Ash Green-based constructor revealed profits reached £133.5 million last year, up 69% on the previous 12 months.

A record 3,635 completions meant revenues reached £809.4 million, up 46%, helped by an average sale price of £216,600, up 11%.

This gave a huge boost in dividend payments to shareholders, up 159% to 35p a share, a figure the board expects to be able to repeat next year as the housing market continues to pick up.

Chief executive David Ritchie hailed the “excellent” results and said the company was “confident” it could improve its returns this year, having reached the targets it set itself for 2014.

He said: “[Our strategic plan] envisages the business, in a stable housing market, delivering sustainable growth over the next few years to annual volumes of between 5,000 and 6,000 new homes.

“We are on track to deliver this strategic plan, supported by record land investment in 2014 at the right point in the cycle.

“The board also intends to pay a dividend of at least 35 pence per share in 2015.

“I would like to recognise the considerable effort, commitment and hard work of our employees during 2014 and thank them all for their contribution to the group’s success.”

On the down side, construction costs were 12% higher than the year before, mainly from subcontracted labour, which there has been a shortage of over the last 18 months.

The company expects costs to rise another 7% this year, thanks to the growing size of average homes being built and subcontractor rates being higher in the South.

Meanwhile, the firm has appointed former Barrat Developments finance chief Earl Sibley as its finance director.

Mr Sibley, 42, is a qualified accountant and worked at Bovis Homes from 2006 to 2008 as financial controller.

Mr Ritchie added: “Earl has been involved at a senior level for many years in publicly listed companies, including Bovis Homes and Barratt Developments, and he brings considerable experience and expertise to his new role.”