Bovis Homes reports strong trading since start of year

Bovis Homes has said trading since the start of the year has been strong, having achieved a 26 per cent rise private net reservations for the period.

The group said this was driven by an 11% increase in the average number of active sales outlets to 91 (2012: 82), and a 14% improvement in the average private sales rate to 0.57 net reservations per site per week (2012: 0.50).

It also said the number of visitors to its sites has increased by 29% in the year-to-date compared to the same period last year.

Sale prices in the period were "modestly above management's expectations, the group said, adding that it expects the average sales price in the half year results to be materially ahead of the prior year comparable period due to improved mix.

The housing profit margin is also expected to increase compared to the first half of 2012.

David Ritchie, the Chief Executive, said: "The ongoing success of the group's growth strategy has driven strong trading in early 2013. Homebuyer sentiment has been improving and, with the recently announced government initiatives, sales rates have increased ahead of management's expectations.

"The increased number of active sales outlets in excellent locations, delivered from the group's assertive land buying over the last few years, provides a great opportunity to take advantage of the improving market backdrop and further strengthen shareholder returns."

At May 10th, thegroup had net debt of £110m, which is expected to be materially lower by June 30th.

The share price rose 1.86% to 767p by 08:50 Thursday.

NR