Housebuilder Bovis predicts forecast-beating profits

Bovis Homes today added to buoyant housebuilder sentiment as it forecast that profit for 2012 would be ahead of market expectations.

A 15 per cent increase in legal completions to 2,355 over the year, a five per cent jump in the average sales price to £170,700 and a “significant” increase in profit margins will all drive profits, Bovis said today.

Bovis added that at 1 January, it had forward sales for this year of 778 homes, an increase of 37 per cent compared to the 568 homes at the start of 2012. It said it started 2013 with 90 active sales outlets, up from 80 at the start of 2013, and expects to grow this number further in 2013.

“We delivered significant growth in profits and returns as a result of our continued strategy for growth through investment in high quality consented and strategic land,” chief executive David Ritchie said today.

“This strategy will be further progressed in 2013, which, subject to stable market conditions, should deliver strong improvements in the group's returns in 2013 and beyond."

The buoyant trading update follows that of rivals Barratt Developments and Taylor Wimpey, which said this week that they expect to report significant increases in full-year profits.