Bovis sees strong increase in first half housing profits

8th Jul 2013 07:04

Bovis Homes said reservations in the first half were ahead of its expectations amid signs of a strong improvement in the housing market.The house builder said it had achieved 1,389 private reservations in the period marking a 40% increase on the first six months of 2012, and its average selling price on completion had risen 15% to £188,500, driven by a better mix of homes. Margins have also improved and it said it was on track to deliver a "strong increase" in housing profits for the first half. Chief Executive David Ritchie said: "With the positive progress in executing its growth strategy the group is well positioned to deliver higher shareholder returns."Bovis also reported a jump in its sales rates in the second quarter. It said consumers were increasingly able to access mortgage finance and the launch of the Help to Buy share equity scheme in April had a positive effect on customers' confidence to purchase a home. The group has beefed up its land bank, adding 2,767 plots on 18 sites, and said it had contracts in place to buy a further 1,018 on 11 sites. Its forecast return on capital employed will improve to 10% in 2013 from 7.7% this year. TB