Bovis hails 'strong' first half

Bovis Homes has reported a 20% rise in profit over the first half of the year, hailing an increase in its average selling price for boosting its performance.

Reporting its results for the six months to 30 June 2013, the housebuilder posted revenue of £184m, up 8% from £170m for the same period last year.

The firm posted pre-tax profit of £18.6m, up 19% from £15.6m for the same period last year.

Operating profit rose from £17.5m to £20.5m.

The firm completed 963 homes over the period, up slightly on 944 last year, with the average sales price increasing by 15% to £188,500, which it said was primarily due to the mix of homes sold.

The firm added 2,767 plots to its land bank over the period, bringing its total consented land bank to 15,579 plots.

David Ritchie, Bovis Homes chief executive said the firm had performed “strongly” in the first half, with “increased volumes, improved average sales price and stronger profit margins”.

 He said the performance had been helped by an improvement in homebuyer sentiment, supported by the government’s Help to Buy scheme.

He said: “The success of the Group in acquiring high quality, consented residential land, combined with the strong pipeline of future land opportunities, will support further sales outlet growth into 2014 and beyond.  

“This in turn is expected to lead to further strong improvements in return on capital employed going forward.”