Record performance at Bovis Homes
Despite certain market constraints, Bovis Homes has declared 2015 to be a record year.
Bovis built 3,934 homes in 2015, more than ever before, and 8% more than in 2014 (3,635). And with the average sales price up 7% to £231,000 (2014: £216,600), pre-tax profits are set to reach new heights too.
Chief executive Dave Ritchie said: "We have delivered the group's highest ever level of profit driven by another year of record volume in 2015. Our strategic plan is on track and we have enhanced our business structure for the start of this year to manage the planned further growth in volume. We have invested well during 2015 in new consented land assets and achieved a strong level of conversion from our strategic land bank. Assuming market conditions remain stable we are confident in our ability to improve return on capital employed further in 2016."
Subcontract labour availability remains a key constraint in the market as a whole, the company said, although it added: “Whilst this has driven cost inflation we continue to see signs of these cost increases moderating.”
In 2015, Bovis Homes acquired 35 consented sites adding 6,058 plots to its consented land bank, of which 2,217 plots (37%) were converted from strategic land assets. A further five sites with planning are in the process of being acquired, adding approximately 1,600 consented plots.
Despite this investment in land, Bovis Homes ended 2015 with £30m cash in the bank, having started it with £5m.
The forward sales position is 2,003 total reservations, an increase of 14% over the 1,752 forward reservations this time last year.
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This article was published on 15 Jan 2016 (last updated on 15 Jan 2016).