Housebuilder Bovis expects better margins
BOVIS Homes said yesterday it expects strong profit growth this year helped by higher average sales prices and improved profit margins, and sees conditions in the UK house building market remaining stable.
The company reported 783 private net reservations in the 19 weeks to 11 May, a 33 per cent increase over last year, with sales prices achieved on reservations to date modestly above management’s expectations.
“The mix of homes has improved and the group expects the average sales price in the half-year results to be ahead of the comparative period of 2011,” Bovis said in a statement.
Profits are expected to grow significantly, benefiting from a greater number of active sales outlets and stronger sales rates, a higher average sales price as homes in the south become a bigger part of the mix, and better margins from an increased contribution from sites acquired since the housing market downturn, Bovis said.
Last week rival Barratt said it had enjoyed the best spring selling season in five years, helped by its focus on more buoyant sections of Britain’s weak property market and government initiatives to prop it up.