Bovis profit soars

Housebuilder Bovis posted a 74% increase in annual pre-tax profit after it sold more homes at a wider margin.

Profit before tax rose to £32.1m for the financial year ended 31 December 2011 from £18.5m the year before. Revenue for the year increased to £364.8m from £298.6m previously.

Home completions increased 8% to 2,045 compared to 1,901 in 2010 and the average private sales price of rose 5% to £180,100. Bovis said sales prices achieved to date have been modestly ahead of group expectations.

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Gross margin, excluding land sales, increased to 20.8% from 17.9%.

Bovis, like many housebuilders, is focusing on the more profitable south of England. Around three-quarters of its land bank is situated along south Devon in the west to Kent and Essex in the east.

Commenting on the results, chief executive David Ritchie said, "This profit improvement has been delivered through the compound positive effect of increased volumes, improved sales prices and stronger margins.

"The group has continued to position itself for significant improvement in returns through the continued acquisition of high quality consented sites in order to grow active sales outlets, leading to higher volumes, increased average sales price and higher profit margins."