Bovis reports increase in profitability ahead of FY results

15th Jan 2015 08:36

An increase in the number of houses sold and a rise in the average sales price, saw Bovis Homes Group report improved profitability in 2014.The housebuilder said it had registered a 29% growth year-on-year in legal completions to a number of 3,635 homes, while the group's average sales price rose 11% to £216,600.Operating profit margin rose from 14.9% in 2013 to 17%, driven by an increasing contribution from legal completions on sites acquired since the housing market downturn and by improving overhead efficiency.Return on capital employed rose to about 16%, from 10.4% in 2013, Bovis said, adding it expects 2015 to "be another successful year of growth in revenue and profit giving rise to further improvement in returns".The group said it has 1,752 reservations for delivery in 2015, 27% ahead of the number of reservations it had at this stage last year."Assuming that the housing market conditions in 2015 will be similar to 2014, the combined effect of the strong forward order book and the expected growth in active sales outlets will enable the Group to increase volume, albeit at a slower pace than in 2014," Bovis said in a statement on Thursday.Bovis shares were down 2.68% to 797.50p at 08:55 on Thursday.