Bovis sees benefits of Help To Buy boost

0
Have your say

Housebuilder Bovis Homes said its order book was at its strongest state in many years and that it was seeing robust demand for its homes in the early weeks of 2014, as buyers backed by the Government help boost the housing market.

In a trading update ahead of its full year results, the company said it had 1,377 forward sales marked for 2014 delivery at January 1, 77 per cent higher than at the same point last year.

Bovis said it would post a “significant” rise in profits in 2013, driven by the completion of more homes, higher average sales prices and an improvement in its profit margin.

Analysts expect Bovis to post full year pre-tax profits of between £74m to £79m, on revenues of £516m to £554m.

It completed 26 per cent more private homes compared with the prior year, while a move to build more lucrative family homes in higher value areas boosted its average sales price by 14 per cent to £195,100.

Its operating profit margin over the year rose to approach 15 per cent, up from 13.3 per cent in 2012.

Britain’s housebuilders have enjoyed a strong return in buyer demand over the past year thanks to the Government’s move to help aspiring homeowners, which has stoked demand for their newly built homes and wider market sentiment.

Earlier this week rival builder Barratt Developments said it is looking forward to a strong second half, following a 71 per cent rise in total forward sales in its first half.