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Bovis reveals strong financial results

Bovis Homes Group has performed strongly during the first half of 2013 and has delivered a 50 per cent increase in housing operating profit.

The company said the increase was a result of its ongoing strategy and reflected positive effect of increased volumes, improved average sales price and stronger profit margins.

Commenting on the results, Bovis Homes Group chief executive David Ritchie said: “The group has delivered a 43 per cent increase in private reservations in the year to date, resulting from the improving quality and increasing number of active sales outlets.

“This improvement has been further assisted by the positive effect of stronger homebuyer sentiment, supported by the Help to Buy scheme launched in April 2013.

“The group is circa 90 per cent sold for the current financial year. This will allow the group to deliver the required remaining reservations over the next few weeks and to build a significantly enhanced forward order book for 2014.

“The positive trading position, combined with an increasing proportion of legal completions on new, more profitable sites, will enable the group to increase profits significantly in 2013 in line with its expectations, subject to stable market conditions.

“With a further increase in capital turn, this strong profit is expected to generate a return on capital for 2013 of at least 10 per cent.

“The success of the group in acquiring high-quality, consented residential land, combined with the strong pipeline of future land opportunities, will support further sales outlet growth into 2014 and beyond.

“This in turn is expected to lead to further strong improvements in return on capital employed going forward.

“With the progressive, sustainable improvement in the group’s profits and the Board’s confidence in the group’s growth strategy, the interim dividend has been increased by 33 per cent to 4.0 pence per share.”

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