Bovis Homes sees profits double

Grant Prior 10 years ago
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Bovis Homes became the latest house builder to unveil impressive results today with a doubling in pre-tax profit during the six months to June 30 2012.

Interim results for the half year show pre-tax profits hits £16.2m from £8.1m last time as revenue rose to £170.3m from £133.6m.

Operating margins were up to 10.3% from 7.5% and the number of homes completed rose to 944 from 801.

Bovis benefited from rising average sale prices on cheaper land and expects to boost its margin to 11% for the full year.

The firm picked-up 8,000 plots during the housing market downturn and currently holds 13,620 consented plots and expects to be building on an average of 83 sites during this year.

David Ritchie, Chief Executive of Bovis Homes said: “The Group has delivered a strong performance during the first half of 2012 with profit before tax doubling against the backdrop of stable, but challenging, market conditions.

“This increase has been delivered through the compound positive effect of increased volumes, improved average sales price and stronger profit margins.

“As a result of a greater number of active sales outlets with an increasing proportion of new, more profitable sites, the Group’s profits will, subject to stable market conditions, continue to increase significantly in the second half of 2012, in line with the Group’s expectations.

“The investments already made in high quality, consented residential land, combined with the strong pipeline of future land opportunities, will support further sales outlet growth into 2013 and beyond.

“While investing strongly, the Group is controlling capital employed through land bank management and by managing working capital tightly, which will, based on stable market conditions, lead to strongly improving shareholder returns going forward.”

Bovis confirmed its interim dividend will be doubled to 3p per share.

 

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