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Sat November 28 2020

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Bovis Homes in ‘best position for years’ says chief

8 Nov 13 Bovis Homes is seeing a 45% increase in private sector business this year compared to last and hit its annual targets before September was out.

Chief executive David Ritchie said the company was in its ‘best position for many years’.

In a trading update this morning, Bovis Homes said that its net private reservations achieved in the 44 weeks to 1 November 2013 were 2,390, 45% ahead of the 1,650 achieved in the same period in 2012. The average number of active sales outlets during this period has increased by 11%.

Bovis Homes has speeded up the building of its private forward order book for 2014 and is buying up land “assertively”, it said. So far this year it has added 3,300 plots on 22 sites to its consented land bank.

“With the sites already acquired during 2013 and the positive pipeline, the group is confident of delivering further strong sales outlet growth in 2014 and 2015,” it said.

The company anticipates delivering 2,800 legal completions in 2013 and the gross profit margin is expected to increase to at least 23%, benefiting from the higher proportion of legal completions on post-downturn sites.  With improving overhead efficiency, the operating margin for 2013 is expected to approach 15%, strongly ahead of the 13.4% achieved in 2012.

Mr Ritchie said: "Our strong trading performance has continued through the third quarter and we are confident of achieving our targeted result for the year as whole.  Our forward order book is in its best position for many years.  With further increases in active sales outlets, supported by ongoing assertive land buying, the group is confident of its future prospects and ability to deliver significantly improved returns."

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