Bovis says prices ticking higher

6th May 2010 07:23

Housebuilder Bovis Homes said sale prices have been modestly ahead of expectations so far in 2010.Weekly reservation sales have been in line with management expectations and have been consistent since the bad weather in the first two weeks of the year melted away.Excluding the first two weeks of the year the group achieved an average private sales rate of 0.47 reservations per week in the 15 weeks to 30 April. This represents an improvement on the 0.41 reservations per week achieved in 2009.By the end of April the group had sold 1,208 dwellings, of which 643 were sales brought forward from 2009 while 565 were generated and completed in 2010. This performance represents an 11% improvement on the 1,092 sales made in the comparable period of 2009.At 30 April, the group held 938 private sales for 2010 legal completion, up 14% on the prior year comparative figure of 823 sales. "Given the anticipated build completion of the reservations achieved to date, it is expected that the delivery of legal completion volumes and hence profits will be more second half weighted in 2010 than in 2009," the group said.Bovis's net cash position strengthened in the first four months of 2010 with £130m of net cash in hand.The group expects trading to remain steady, though it is mindful that the landscape for the industry could change depending on the result of the UK general election."Notwithstanding this uncertainty, the group is selling homes in line with its targeted weekly sale rate and a continuation of this will allow the Group to achieve its volume expectations for 2010," the group's statement said.