Bovis set for “significant” pre-tax profit rise

Bovis expects to deliver a “significant” increase in pre-tax profit driven by record new homes volumes

Giving an update ahead of its final results for the year ending December 31 2014, the housebuilder announced that its legal completions grew 29% to a record 3,635 homes against 2013. The average sales price of the homes lifted 11% to £216,600 thanks to improved house prices with a stronger mix.

The anticipated pre-tax profit increase was also shaped by a climb in operating profit margin to around 17% from 14.9% in 2013.

During the year, Bovis saw a 16% rise in net private reservations to 3,218. Net reservations per site per week was 0.54, a slight decline from 2013’s 0.59 which Bovis said reflected the slowing market in the second half of 2014 compared to the equivalent period in 2013 following the launch of Help to Buy.

The housebuilder began 2015 with its “strongest forward sales position for many years”. Private homes here were 41% ahead of the start of 2014 at 979. It entered the year with 103 active sales outlets.

David Ritchie, Bovis’ ceo, said: “We have delivered significant growth in 2014 with record volumes, and material increases in revenue, profits and returns.

“We have continued to execute our strategic plan successfully despite the housing market moderating in the second half of 2014. The size of the business is set to grow further after a record year of land investment in 2014.”

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