Focus on costs boots Bovis Homes' profit by 146%

Bovis Homes’ sales increased to £298.6m in 2010, a 6% increase on its 2009 sales of £281.5m.

Despite reporting only a marginal increase in sales, a focus on costs pushed margins higher and resulted in an increase in pre-tax profits of 146%, ending the year at £18.5m, compared with £7.5m during 2009.

Future profitability seems to be in the bag after Bovis added around 3,700 plots during the year. This took its total land bank to 13,766 plots, all with planning consents.

A statement accompanying its results said: “These plots have a potential gross profit of £461m.”

Despite spending a net £137m on land, Bovis still has net cash in the bank of £52m but this is down from £112m at the end of 2009 because of its investment in land.