Bovis sales beat expectations

Housebuilder Bovis has outperformed management expectations since the new year, with sales 26% higher in the year to date than in 2012, the firm said today.

In a trading update ahead of today’s Annual General Meeting, Bovis sales it had sold 989 homes since January 1, compared to 783 in the same period last year. While Bovis has 11% more outlets than this time last year, the increase is also due to a 14% jump in the average number of sales per site per week.

It achieved 0.57 sales per site per week, up from 0.50, with visitors up 29%. It added that sales pries achieved had been “modestly ahead” of management expectation. It said sales had been encouraged by the launch of the government’s “Help to Buy” scheme in the March budget, with experience in early weeks being “encouraging”, drawing in more visitors to its sales outlets.

With “increased confidence” in the market in 2013, Bovis said it was likely to achieved an expected return on capital in 2013 of 10%, compared to just 7.7% in 2012.

David Ritchie, chief executive, said: “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.”