Prof­its up for house­builder

Kentish Express Ashford & District - - Ancient Clock Restored -

Pre-tax prof­its more than dou­bled at a Kent house­builder thanks to a record num­ber of sale com­ple­tions.

In im­pres­sive half year re­sults, Bo­vis Homes said rev­enues in­creased by 75% to £322.1m, with prof­its be­fore tax up 166% to £49.4m.

The New Ash Green-based com­pany re­porter a 54% rise in le­gal com­ple­tions to 1,487 homes in the first six months of this year.

The av­er­age sale price on pri­vate le­gal com­ple­tions was £239,500, which is 20% higher than the £200,200 av­er­age in the same pe­riod in 2013. That fig­ure ex­cludes pri­vate rented sec­tor homes.

Bo­vis Homes chief ex­ec­u­tive David Ritchie said: “In the first half of 2014 the group has de­liv­ered a record num­ber of le­gal com­ple­tions lead­ing to a 150% in­crease in op­er­at­ing profit.

“This sig­nif­i­cant in­crease is the re­sult of the com­pound pos­i­tive ef­fect of in­creased vol­umes, im­proved av­er­age sales price and stronger profit mar­gins.

“The strong trad­ing po­si­tion will en­able the de­liv­ery of a sig­nif­i­cant in­crease in prof­its in 2014 in line with our ex­pec­ta­tions, sub­ject to sta­ble mar­ket con­di­tions.

“With a fur­ther in­crease in cap­i­tal turn, this level of profit is ex­pected to gen­er­ate a re­turn on cap­i­tal in 2014 of ap­prox­i­mately 16%.”

Mr Ritchie also re­vealed the group had its most suc­cess­ful half year of land in­vest­ment, ac­quir­ing 4,597 con­sented plots on 23 sites.

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