Help to Buy adds to confident outlook at Bovis Homes

19th Aug 2013 07:15

FTSE 250 homebuilder Bovis Homes saw profits jump by nearly a fifth in the first half and gave an upbeat outlook for the rest of the year with demand being supported by the government's 'Help to Buy' scheme.Profit before tax totalled £18.6m in the six months to June 30th, up 19% on the £15.6m reported the year before. This was helped by a 15% increase in the average sales price to £188,500 (£164,000 previously) and an 80 basis-point improvement in operating margins to 11.1% (10.3%).Housing revenue rose 17% from £157.1m to £183.2m as the company completed 963 homes during the period, up from 944 in the first half of 2012.The firm chose to hike its interim dividend per share by 33% from 3.0p to 4.0p.Looking ahead, Bovis said that it is around 90% sold for legal completions in 2013 and predicts that average sales prices should be at least 10% greater than 2012.The company said: "The launch of the government's Help to Buy shared equity scheme on April 1st 2013 added to what was already a more confident housing market backdrop and early signs are that this shared equity product is having a positive effect on transactional activity in the new homes market."Bovis said that the third quarter has started strongly with good sales rates and a less pronounced summer lull in reservations than in previous years."As such, the trading environment appears robust at this time and is creating a growing sense of confidence in the market."BC