Bovis: completions up 30% on last year

In an interim management statement the home builder said it remained on course to deliver a strong result for 2014 and is targeting volumes of around 3,650 homes, an increase of approximately 30% compared to 2013.

Related topics:  Mortgages
Rozi Jones
7th November 2014
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Bovis said the average selling price in 2014 is expected to rise by 10% compared to 2013.

About 6,000 consented plots on 33 sites have been added to the land bank and the firm also reported a substantial forward order book for 2015 supporting strong growth prospects.

The statement said the group had "experienced a more normal seasonal pattern in trading activity during 2014" with a weaker summer period followed by an improvement in the autumn.

Given the reported lower levels of activity in the wider housing market, the Group's sales rates have been robust albeit lower in the second half of the year compared to the strong equivalent period in 2013 which benefited from the introduction of the Government's Help to Buy scheme.

In the 43 weeks to 31 October 2014, the Group achieved 2,886 net private reservations (2013 comparable: 2,334), an increase of 24%, including the Group's private rented sector transactions.

At the end of October, the Group held 1,282 forward reservations for 2015 legal completions compared to 726 reservations at the same point in 2013.

David Ritchie, chief executive of Bovis Homes Group, said:

"We are anticipating a strong increase in profit for 2014 and at the same time expecting to deliver a stronger forward order book for the start of 2015.

"The Group's updated strategic plan as laid out at the time of our Interim Results to deliver optimal scale and enhanced returns is supported by our ongoing land buying and strategic land conversion. We are confident of our future prospects and ability to deliver improved shareholder returns through higher return on capital employed and increasing dividends."

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