Bovis Homes profits soar in wake of housing boom
House builder Bovis Homes has reported a surge in profit before tax of 48 per cent to £78.8m for the year to 31 December.
The company said the rise in profits reflected the group's growth strategy. Bovis reported a 14 per cent increase in average sales price to £195,100 and attributed the increase to a mix of larger homes and a greater proportion of high value southern sites.
Bovis reported a 178 per cent rise in private forward reservations to 692 homes, and a 26 per cent increase in production over 2013 to 2,935 homes.
David Ritchie, the chief executive of Bovis Homes Group, commented:
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.
Should current market conditions continue, the group expect to be able to deliver strong increases in volume and profit in 2014 with the aim of achieving a return on capital employed for the year of at least 14 per cent.