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Bovis Homes boosts land bank but average sale price falls

9 Jul 10 Bovis Homes has increased its land bank by 3,400 plots, the house builder announced in a trading update for the six month period ending 30 June 2010.

Bovis Homes has increased its land bank by 3,400 plots, the house builder announced in a trading update for the six month period ending 30 June 2010.

The Group said it has added 1,900 consented plots to its consented land bank since the start of 2010, 80% of which are located in the south of England, at a land cost of approximately £107m. In addition, it has agreed terms to acquire a further 2,500 plots.

But its average sale price fell, due to an increased mix of social and partnership homes, to £158,500 compared with £159,700 in the first half of 2009.

For private homes, Bovis Homes achieved an average net sale price of £163,500, (H1 2009: £160,400), reflecting “an improved pricing position generally on a smaller average size of home legally completed”.

For the six month period, the group legally completed 803 homes, compared to 754 homes in the comparable period, an increase of 6%.

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At 30 June 2010, Bovis Homes held net cash of £79m.

The updated concluded: The Group is selling homes in line with its targeted weekly sale rate and a continuation of this will allow the Group to achieve its volume expectations for 2010.

“Given the confidence the Board has in the medium term prospects of the Group arising from its investment in new land opportunities and the Group’s strong net cash position, the Board intends to resume dividends at the end of the current financial year, assuming the continuation of current market conditions in the new homes market.”

Bovis Homes reports its interim results on 23 August 2010.

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