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Bovis Homes starts 2014 with a surge

Bovis Homes has started 2014 with ia surge in sales, increasing the pace of the strong growth it experienced last year.

In 2013 Bovis Homes saw its revenue rise 31% to £556.0m, thanks to a 19% rise in the number of homes sold and a 14% increase in the average sale price of its homes.

Operating profit increased in 2013 by 46% to £82.8m and pre-tax profit was up 48% to £78.8m.

With this year having started strongly, that momentum looks to be only accelerating in 2014.

Bovis Homes began 2014 with a forward sales order position of 1,377 homes, a 77% improvement on the 778 homes brought forward at the start of 2013.

The 468 private reservations achieved in first seven weeks of 2014 was 64% up on the 285 achieved in the same period last year and the 1,875 cumulative sales achieved to 21 February 2014 was up 76% on last year.

Although costs are increasing, the company said, these are outweighed by growth in the business.

Chief executive David Ritchie said: “A rigorous focus on targeted land acquisition, together with tight management of costs and capital have enabled the Group to take full advantage of the more favourable market conditions to increase volumes, improve sales prices and strengthen margins.”

He added: “The housing market is recovering with higher activity levels and improving house prices expected to more than compensate for supply chain cost increases.  This positive market is acting as a welcome backdrop for the group's continued successful execution of its growth strategy.

“With the current strong sales position and assuming current market conditions continue, the group is confident of its ability to deliver strong increases in volume, revenue and profit in 2014 with the aim of achieving a return on capital employed for the year of at least 14%."

 

Bovis Homes 2013 highlights

 2013

 2012

 Change

Revenue

£556.0m

£425.5m

+31%

Operating profit

£82.8m

£56.7m

+46%

Operating margin

14.9%

13.3%

+1.6ppts

Profit before tax

£78.8m

£53.2m

+48%

Basic earnings per share

44.9p

30.2p

+49%

Dividend per share

13.5p

9.0p

+50%

ROCE

10.4%

7.7%

+2.7ppts

Net (debt) / cash

£(18.0)m

£18.8m

 

 

 

 

 

 

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