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Bovis Homes doubles half-year profit

20 Aug 12 Increased sales volumes, improved sales prices and stronger profit margins have helped Bovis Homes report a doubling of half-year profit compared with the first half of 2011.

Profit before tax rose 100% to £16.2m on revenue that was up 27% to £170.3m.

The gross margin in housnig rose from 20.1% to 20.9%.

"The Group has delivered a strong performance during the first half of 2012 with profit before tax doubling against the backdrop of stable, but challenging, market conditions," said  Bovis Homes Group chief executive David Ritchie. "This increase has been delivered through the compound positive effect of increased volumes, improved average sales price and stronger profit margins.

"As a result of a greater number of active sales outlets with an increasing proportion of new, more profitable sites, the Group's profits will, subject to stable market conditions, continue to increase significantly in the second half of 2012, in line with the Group's expectations."

He added that investments already made in residential land, combined with a strong pipeline of future land opportunities, will support further sales  growth into 2013 and beyond. 

The first half of the year saw 944 reaching legal completion compared with 801 last year. There was also an increase in average sales price from £163,400 to £164,400.

The housing gross margin is expected to be between 21% and 22% for 2012 full year (2011: 20.8%), with an expected operating margin of between 12% and 13%, up from 10.0% in 2011.

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