Bovis shrugs off Brexit concerns as it eyes full-year profits ahead of expectations
Housebuilder Bovis today said it expects profits to beat market consensus thanks to an increase in new homes and a wider margin.
The number of new homes delivered rose three per cent on last year to 3,759, which the company said was in line with expectations.
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Bovis said the average selling price ticked up marginally to roughly £273,000, with profits expected to be slightly ahead of market consensus thanks to a “significant” increase in operating margin for the year.
The optimistic update comes despite a slowdown in the housing market caused by growing caution among homebuyers in the run-up to Brexit. Shares in Bovis rose almost five per cent this morning following the update.
Chief executive Greg Fitzgerald said: “The significant improvement in operational performance across all areas of the business is expected to deliver a record year of profits for the group.
“We are looking forward to delivering the first homes from our new housing range in 2019 and continuing to make further operational and financial progress.”
Bovis said the early signs for 2019 trading are “encouraging”, despite the uncertainty surrounding Brexit.
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“The industry fundamentals remain strong with customer demand for new homes supported by attractive mortgage finance and government initiatives, in particular Help to Buy,” the company said.
Rival UK housebuilders Persimmon and Taylor Wimpey have both said they expect full-year profits to meet expectations.