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Bovis Homes to eliminate debt by year end

8 Nov 11 Bovis Homes continues to report a positive trading performance, and is in line to eliminate its current net debt of £31 million by year end.

In the year to date, the house builder has achieved 1,480 private reservations (2010: 1,216), a 22% increase. This improvement has been driven by:

  • a 10% increase in the average number of active sales outlets in the period to 72 from 66 in the same period in 2010; and,
  • an improvement in the net reservations per site per week of 11% to 0.47 from 0.42 in the comparative period in 2010.

In the last 10 weeks, Bovis Homes has achieved 393 net private reservations (2010: 304), an improvement of 29%, representing a sales rate per site per week of 0.49 (2010: 0.45). Visitors in the same period increased by 40%.

The firm has launched 29 new sales outlets in the year to date with a further four scheduled to launch in the remainder of 2011. This will deliver 80 active sales outlets at 31 December 2011.

Cumulative sales expected to legally complete during 2011 are in excess of 2,000 homes. The house builder said it is on track to deliver legal completion volume for 2011 between 5% and 10% ahead of the prior year's 1,901 homes.

Bovis Homes has acquired around 900 consented plots on eight sites in the second half of 2011, bringing the total added in the year to date to 2,500 across 17 sites, mainly located in the south of England.

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It said: “The pipeline of consented and strategic land remains strong, giving the group confidence that it can continue to deliver sales outlet growth.

“The group remains on target to achieve five land sales in 2011, which will generate proceeds of circa £50 million, the major part of which will be received in 2011 with the balance delivered as the land is serviced.

“Sales prices achieved to date reflect the general stability of the housing market with small differentials experienced in different locations, prices being generally stronger in the south of England. The group expects its average sales price on private legal completions in 2011 to be circa £180,000 (2010: £172,300).

“Given the Group's ongoing strong cost control, the housing operating margin (excluding land sales) for 2011 is expected to approach 10%, significantly ahead of 2010's operating margin of 7%.”

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