Construction News

Fri August 02 2024

Related Information

Bovis beats expectations

18 Jan 13 Bovis Homes has joined the ranks of leading housebuilders this week revealing strong trading ahead of expectations.

Earlier this week Taylor Wimpey and Barratt Developments both reported upbeat trading statements.

Now Bovis Homes too says that it expects to announce pre-tax profits for 2012 ahead of market expectations when it unveils its final numbers next month.

Better-than-expected trading has been boosted by a 15% growth in legal completions to 2,355 (2011: 2,045), of which 1,854 (2011: 1,624) were private and 501 (2011: 421) were social.

There has also been a 5% increase in average sales price to £170,700 (2011: £162,400), resulting from an improved mix.

The operating profit margin has leapt from 10% in 2011 to 13.5% in 2012.

During 2012, Bovis Homes invested in 3,500 plots of consented land on 24 sites.  Of these, circa 2,650 plots on 18 sites were added to the consented land bank during 2012 and the balance is expected to be added during the early months of 2013.

Even after the significant land investment, the company remains in a positive cash position, with net cash of £19m, having started 2012 with £51m of net cash.

Looking ahead, forward sales for 2013 are 37% ahead of this time last year.

Chief executive David Ritchie said: "2012 was a successful year for Bovis Homes. We delivered significant growth in profits and returns as a result of our continued strategy for growth through investment in high quality consented and strategic land. This strategy will be further progressed in 2013, which, subject to stable market conditions, should deliver strong improvements in the group's returns in 2013 and beyond."

Got a story? Email news@theconstructionindex.co.uk

MPU
MPU

Click here to view latest construction news »