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Sun June 20 2021

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Bovis beats expectations

8 Jul 13 Bovis Homes has had a strong first half of the year with trading ahead of expectations.

The 1,389 net private reservations achieved in the first six months were 40% up on the 993 in H1 2012.

Net private sales rate per site per week improved by 26% to 0.59 (H1 2012: 0.47). In the second quarter of 2013, the rate was 60% up year-on-year.

Legal completions for the six months ended 30 June 2013 were up more modestly, from 944 last year to 963 homes. Average sales price was up 15% to £188,500.

Bovis is the latest in a line of house-builders to report an upturn in the housing market. Last week Taylor Wimpey, Persimmon and Galliford Try all put out similarly upbeat statements.

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For the half year, Bovis Homes expects to report a housing gross margin of 23% (H1 2012: 21%) and a housing operating margin approaching 11%.

The Bovis board said that “the housing market has shown signs of strong improvement” with mortgage availability improving and government’s Help to Buy scheme having “a positive effect on customers' confidence”.

It added: “These positive effects are expected to support greater activity in the new homes market, which in turn will provide an impetus to the number of new homes built.  The group continues to view positively the government's initiatives to support the housebuilding sector.”

Chief executive David Ritchie said: "The group has performed well in the first half of 2013 with a significant further improvement in housing profit, delivered from the ongoing successful execution of the group's growth strategy. Trading in the first half of 2013 has been strong and the group has achieved a 40% increase in private reservations compared to the same period in 2012.  Continuing its success in the land market, the group has added 2,767 new consented plots to the land bank. With the positive progress in executing its growth strategy, the group is well positioned to deliver higher shareholder returns."

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