Bovis operating profit up 13.5 per cent year-on-year

Bovis Homes Group has posted profits ahead of expectations with land purchases supporting further growth, according to a trading update published by the company on Friday morning.

Bovis Homes Group has posted profits ahead of expectations with land purchases supporting further growth, according to a trading update published by the company on Friday morning.

The group's operating profit margin rose 13.5% for the year ending December 31st, compared to 10% in 2011. It said that this was driven by an increasing contribution from legal completions on sites acquired since the housing market downturn.

The number of legal completions jumped 15% to 2,355 and the group saw an increase of 5.0% in its average sales price to £170,700.

During 2012, the group invested in approximately 3,500 plots of consented land on 24 sites. According to Bovis, the balance is expected to be added during the early months of 2013.

The group legally completed three land sales during 2012 generating a total income of £18m and £5.0m of profit.

Commenting on the trading update, David Ritchie, Chief Executive Officer of Bovis Homes, said: "2012 was a successful year for Bovis Homes. We delivered significant growth in profits and returns as a result of our continued strategy for growth through investment in high quality consented and strategic land.

"This strategy will be further progressed in 2013, which, subject to stable market conditions, should deliver strong improvements in the group's returns in 2013 and beyond."

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
It's not just the UK – we're seeing pandemic housing booms across the globe
Property

It's not just the UK – we're seeing pandemic housing booms across the globe

Soaring house prices aren’t just a UK thing, they’re a worldwide phenomenon. And it’s no coincidence – the underlying cause is much the same. John Ste…
18 Jan 2021