Bovis confident as momentum continues

Housebuilder Bovis said positive trading momentum has continued since its interim results in July as net private reservations in the 44 weeks ended 4 November rises 22% from the same time a year earlier.

Bovis saw a 10% increase in the average number of active sales outlets in the period to 72 from 66 the year before. Net reservations per site per week also improved 11% to 0.47 from 0.42 a year earlier.

Bovis, which embarked on a £1m land buying spree in August said, "Subject to current market conditions continuing, the group is confident that it can deliver an increase in ROCE in 2012 to at least 7% and make further strong improvements in 2013 and beyond."

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

In the ten weeks since July Bovis increased net private reservations 29% to 393, representing a sales rate per site per week of 0.49, up from 0.45 before. Visitors in the same period increased by 40%.

The housebuilder has launched 29 new sales outlets in the year to date with a further four pencilled in for the remainder of 2011.

Bovis acquired around 900 consented plots on eight sites in the second half of 2011, bringing the total added in the year to date to approximately 2,500 consented plots across 17 sites, mainly located in the south of England.

"The pipeline of consented and strategic land remains strong, giving the group confidence that it can continue to deliver sales outlet growth," it said.

--

cj