Bovis sees spike in annual revenue

Bovis, the FTSE 250 construction, project management, and consulting provider, said it remains on track to deliver a strong increase in revenue in 2012.

The group saw a significant increase in private average sales prices due to an improving mix and expects to legally complete around 2,350 homes during 2012 to date.

Average sales price achieved in the year to date for private reservations expected to legally complete in 2012 is around £190,000 compared ith £180,100 achieved on private legal completions in 2011.

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Gross profit margin for 2012 is expected to increase to roughly 22%, reflecting the increasing proportion of homes sold on post-downturn sites, Bovis explained.

The significant increase in operating margin combined with improved capital turn will provide an increase in ROCE to nearly 7.5% for 2012 from 5% in 2011.

"Subject to stable market conditions continuing, the group is confident that it can deliver further growth in revenue with strong increases in profit margins. This profit growth combined with a stable capital base will deliver further strong improvements in ROCE in 2013 and beyond," the group said in a statement.

CJ