SIMON BROWN | NORTHLAND CAPITAL PARTNERS
The group will achieve faster profit growth in 2012 due to stock specific attributes and a regional bias to southern England. We believe over 50 per cent of the sites in 2012 will be higher margin outlets. Coupled with improved cash flow, the new sites will yield a higher margin through 2012.
JONATHAN JACKSON | KILLIK & CO
In 2012, average sales outlets are expected to grow 16 per cent (to 85). Volumes should be higher, at an increased average sales price and with an improved profit margin, leading to a significant increase in profits. The shares are currently trading at a 15 per cent discount to historical net asset value.
MARK HUGHES | PANMURE GORDON
Bovis has confirmed 2011 numbers will be in line with consensus expectations, and our forecasts are broadly unchanged. Whilst the business is in an excellent position regarding net cash, it has a lower than average return on capital employed ratio, so our recommendation is to hold.