Bovis Homes expect the average sales price of one of its properties to be around 10 per cent higher this year than in 2013, and believes it will sell around 30 per cent more of them.
In an interim statement, the housebuilder said sales price had risen about 5 per cent for the period July 1 2014 to the present, compared to the equivalent last year.
However, while properties are being sold for more, Bovis Homes are selling them with less frequency. Bovis said its sales rates were lower compared to a strong equivalent period in 2013 which was boosted by the Help to Buy scheme.
The FTSE 250 company also expects a 30 per cent increase in its volumes of new homes to 3,650. That’s down from previous expectations of 5,000 to 6,000, but still a 30 per cent increase on volumes in 2013.
Operating margins for 2014 are now expected to stand at around 17 per cent.
Bovis chief executive, David Ritchie, said:
We are anticipating a strong increase in profit for 2014 and at the same time expecting to deliver a stronger forward order book for the start of 2015.The group's updated strategic plan as laid out at the time of our interim results to deliver optimal scale and enhanced returns is supported by our ongoing land buying and strategic land conversion.We are confident of our future prospects and ability to deliver improved shareholder returns through higher return on capital employed and increasing dividends.