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.

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