Member Article

Bovis Homes expect strong results

Profits at Kent-based property group Bovis Homes soared with expected project completions up 15%.

A trading statement released by the company said pre-tax profits would be ahead of market expectations, after average sales prices rose by 5% to £170,000.

Operating margins increased to approximately 13.5%, up from 10% in 2011, while Bovis said it made considerable investment over the past 12 months, with 3,500 extra plots across 24 sites.

Three pieces of land were also sold off by the company which brought in a total income of £18m and £5m profit.

Further to Bovis’ completed projects, the firm had 912 homes under construction at the end of last year, and said that despite its significant investments it still managed to end the year with cash of £19m, in comparison with £51m last year.

David Ritchie, chief executive of the firm 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.”

Bovis gave a positive outlook for the coming year, and said investments made in 2012 would help drive growth if market conditions are stable.

This was posted in Bdaily's Members' News section by Miranda Dobson .