Private reservations up by a third at Bovis

published 16 May 2012

Housebuilder Bovis said trading in the 19 weeks to 11 May 2012 has been strong while private net reservations rose by a third to 783 year on year.

The group said the number of visitors to Bovis sites increased 51% in the year to date while sale prices on reservations to date have been modestly above management's expectations.

The average sales price in the half-year results are expected to be ahead of the same period in 2011, driven by a change in the mix of homes sold. Bovis said it is focusing more on family homes in the south of England, where the housing market is stronger than anywhere else in the UK.

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The profit margins on the reservations achieved to date have improved from the previous year, following an increased contribution from sites bought since the housing market downturn.

Looking ahead Bovis said it remains confident of its prospects for 2012 and based on current market conditions continuing, it expects an increase in legal completions at a higher average sales price and at an improved gross profit margin.

It currently has legal agreements in place to buy 1,774 housing plots on 14 sites and also has over 2,500 plots on sites where terms are agreed and which are being progressed to acquisition.

Bovis recorded net debt of £4m and expects to be in a similar position at the half-year.

"This balance sheet strength will enable the group to continue to invest in land to grow the business," it said in a company statement.