Bovis Homes – Sales Increase 5% and Operating Profit Predicted to be at Least 7%

More good news from another House Builder – Bovis who issued their trading update today.

A full copy of the Statement can be seen by following the links at the bottom of this post but the high lights on its housing are posted below details regarding its land purchases and housing stock can be seen on our Onyx Marketing blog site:

Trading update January 2011, 14 January 2011

Overview

Bovis Homes Group PLC is today issuing the following trading update ahead of reporting its preliminary results for the year ended 31 December 2010 on Monday 14 March 2011.

The Group has achieved a significant improvement in profits in 2010 and has made strong progress in implementing its land investment strategy.

Sales and profits growth

In line with management expectations, the Group legally completed 1,901 homes in 2010 (2009: 1,803 homes), an increase of 5%, of which 1,592 were private homes (2009: 1,527 homes) and 309 were social homes (2009: 276 social homes). The Group’s average sales price in 2010 was £160,700, 4% higher than the equivalent of £154,600 in 2009. This increase was driven by growth in the Group’s average private sales price in 2010 to £172,400 from £165,500 in 2009.
Improved sales prices during the year combined with the benefit of build cost savings primarily on second half legal completions have increased the gross margin. With overheads in line with expectations, the Group expects the operating profit margin for 2010 to be at least 7%. Given the Group’s strong performance, it is anticipated that the profit for 2010 will be ahead of consensus1 expectations as at the date of this trading update.

Return to dividend

The Group has delivered early success with its growth strategy and the Board is confident in its further delivery, based on current market conditions. Given this confidence, the Board has decided to recommence the payment of dividends to shareholders. Based on the anticipated 2010 profits and the Group’s robust balance sheet position, the Group will declare a dividend for 2010, subject to approval by shareholders at the 2011 Annual General Meeting, which will be paid in May 2011.

Commenting on the progress achieved in 2010, David Ritchie , Chief Executive of Bovis Homes, said:

“We are pleased with the positive Group performance in 2010 and remain confident of our growth strategy through the acquisition of good quality residential land at attractive rates, which will provide an increase in sales outlets to support volume growth. Based on current market conditions this will deliver growth in profits and improved financial returns which will add significantly to future shareholder value.”

A full copy of the statement from Bovis Homes can be obtained from their website http://www.bovishomesgroup.co.uk/information-on/press-releases/ or the following link Statement Report

If you are a house builder and need temporary assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Bovis Homes then contact Andrew Fella at Onyx Construction Consultants Ltd

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