Bovis see record first half year sales of homes

House builder Bovis Homes said it sold a record number of homes in the first half of 2015.

A total of 1,525 homes were sold in the six months ending 30th June 2015, up from 1,487 in the same period last year, a rise of 3%. The Company also saw pre-tax profits increase to £53.8M, up 9% from the first half of 2014’s total of £49.4M.

Prices have also risen to an average of £264,200, an increase of 10% from 2014’s £239,500.

Bovis said the Kent-based company’s growth can attributable to an increase in homebuyer confidence and the growing demand for housing, along with good mortgage availability and the government backed ‘Help to Buy’ scheme.

In Bovis’s financial statement, David Ritchie, Chief Executive said: “We have delivered a strong first half performance in 2015 with a record number of legal completions and a further improvement in return on capital employed. Our long- term land investment in high quality locations, including delivery from strategic land, is providing a consented land bank, which supports growth in active sales outlets leading to increased volumes.

“I am pleased to report that significant land opportunities continue to be available at higher returns meaning disciplined investment in consented land should underpin future growth in shareholder returns. With positive market conditions prevailing, we continue to assess the housing cycle and will adapt our strategy appropriately. We anticipate that the addition of around 40 sites per annum will support our medium term growth strategy to deliver volumes of between 5,000 and 6,000 new homes each year.

“For 2015, we are on track to deliver our expected volume of new homes and remain confident in our outlook for the year as a whole. The combination of strong revenue growth and higher profit margins with improved capital efficiency will drive higher capital turn and return on capital employed. With this anticipated improvement in returns, the Board intends to increase the full year dividend to 40 pence per share.”

Bovis’s strong performance over this period are being seen as a reflection of the buoyancy in the housing market within the south-east of England, with house building up 11% on last year.

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