Pre-tax profits for 2012 are expected to be well ahead of expectations driven by 15% growth in legal completions to 2,355 and a 5% rise in average sale price.

This also lifted operation margin from 10% in 2011 to 13.5% last year, according to a trading statement today ahead of unveiling preliminary results for the year.

The south east house builder’s forward sales for 2013 stands at 778 homes, an increase of 37% compared to the 568 homes at the start of 2012.

Demand comes from both the stronger private reservations position and an improved level of social housing reservations.

David Ritchie, Chief Executive of Bovis Homes, 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 Homes invested strongly in 3,500 plots of consented land on 24 sites. Of these, 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.

Despite the significant land investment, the Group remained in a positive cash position at the year end, with net cash of £19 million, having started 2012 with £51 million of net cash.