Profits rise for house builder

House builder Bovis Homes showed the EU referendum campaign had minimal effect on business as it reported growing sales and profits in the first half of the year.

Its chief executive David Ritchie said high levels of demand and ongoing under supply meant the “underlying market fundamentals for UK housing remain positive”.

Revenue increased 18% to £412.8 million while pre-tax profits jumped 15% to £61.7 million as the boss said he remained committed to the firm’s long-term growth strategy.

It comes after Bovis shares fell 37.5% in the two trading days after the EU referendum, down from £10.24 to £6.40. They have since recovered to £8.21. The New Ash Green-based company, which builds most of its developments in the south of England, sold 1,601 homes, up 5%, with an average price of £254,500, up 14% compared to last year.

It will pay an increased interim dividend of 15p, up 9%.

Mr Ritchie said: “Our forward sales position means we are well placed to continue this strong performance through the remainder of the year.

“Whilst it is too early to judge the impact of the EU referendum and the Bank’s monetary policy response on the UK housing market, the underlying market fundamentals for UK housing remain positive.

“We have been pleased with the resilient level of interest shown by potential home buyers contacting us.”