Profits up for housebuilder
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.