Bovis Homes on track to deliver record revenues despite Brexit blip

 
Caitlin Morrison
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The housebuilder says the Brexit blip won't hurt yearly revenues and profit

Housebuilder Bovis Homes said today that it's on track to meet expectations of revenue and profit growth for the year, despite uncertainty in the market following the EU referendum.

The group said that aside from the weeks immediately after the UK's vote to leave the EU, sales during the year to date have followed a normal seasonal pattern.

Bovis said the backdrop for house building in the UK "continues to be positive with demand for new homes running ahead of housing supply", adding that political support remains in place "as evidenced by the improved planning regime and the continuation of the Help to Buy equity loan scheme".

Continued low unemployment and a competitive mortgage market are also helpful for the sector.

"Another year of both growth in volume and increase in average sales price is expected to deliver record revenues for the group in 2016," said chief executive David Ritchie.

"As a result, we are on track to deliver increased profit and a further improvement in return on capital employed, in line with our expectations."

He added: "We continue to trade well, drive production across all our sites, invest in our people and acquire high quality land outside London. Housing market fundamentals remain supportive despite greater market uncertainty and we continue to manage the business through the cycle to deliver sustainable shareholder returns."

Bovis also announced that Nigel Keen, property and development director of John Lewis, is to join the board as a non-executive director.

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