Bovis sees higher prices and strong demand boosting FY profit

16th Jan 2014 07:00

Higher house prices and strong demand is set to drive a "significant" increase in annual profit at Bovis Homes.The housebuilder said an improved mix of larger homes with a greater proportion of sites in southern England had driven an increase of 14% in the group's average sales price to £195,100.It also said legal completions had risen 19% to 2,813 including a 26% increase in private homes to 2,330.It said its land bank stood at 14,638 consented plots, providing over five years of land supply at 2013 volume levels. The group had net debt of £18m at the end of the year, having started 2013 with £19m of net cash, reflecting the group's land investment.Bovis said trading stayed robust in late 2013 and the momentum had kept up into the opening weeks of 2014.It said its strong forward order book, expected growth in active sales outlets and an improving average sales price would allow it to continue to drive revenue growth, assuming stable market conditions.With improving profit margins, the group's profits and return on capital employed are both expected to show further strong improvement in 2014.Chief Executive David Ritchie said: "2013 was another successful year for Bovis Homes. Our forward order book is in its best position for many years. With further increases in active sales outlets supported by ongoing assertive land buying, the group is confident of its future prospects and ability to further significantly improve returns."PW