Bovis sets ambitious targets after its best-ever year
Bovis Homes Group has reported record profits for 2015 and is planning further growth.
Bovis built nearly 4,000 homes last year but is looking to grow this by at least 30% to between 5,000 and 6,000 units a year.
For the financial year ended 31st December 2015, Bovis Homes Group generated revenue of £946.5m, up 17% from 2014’s £809.4m.
Pre-tax profit was up 20% to £160.1m (2014: £133.5m). Operating profit margin was 17.3%, up from 17.0% in 2014.
The number of legal completions was up 8% to 3,934 (2014: 3,635) and the average sales price was up 7% to £231,600 (2014: £216,600).
During 2015 Bovis added 6,058 consented plots to the land bank on 35 sites at a cost of £343m. This follows the acquisition of 42 sites in 2014, in line with its stated ambition to acquire around 40 new sites per year.
As at 31st December 2015, the company owned 142 consented sites and remains on track to increase further its number of owned consented sites during the next few years.
The target now is to increase annual output to between 5,000 and 6,000 new homes over the next few years, through 150 or so sales outlets. Assuming it builds 5,500 new homes a year, that is 38% more than it achieved in 2015.
Chief executive Dave Ritchie said: "We have delivered record profit driven by another year of record volume. We have invested well during 2015 in new consented land and achieved a strong level of conversion from our strategic land bank. While it has been a time of operational challenge with fast moving market conditions, we are delivering our strategic growth plan and have evolved our management and business structure at the start of 2016 to support further growth. Assuming market conditions remain stable we are confident in our ability to improve return on capital employed further in 2016.”
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This article was published on 22 Feb 2016 (last updated on 23 Feb 2016).